2014-02-05 – Newsletter I/2014 – Accounting and tax treatment of fixed recovery cost payable upon the late payment of creditor invoices

The amendment of the Hungarian Civil Code effective as at 1 July 2013 stipulates, in relation to transactions between business entities, the mandatory payment of default interest on late payments equal to the key interest rate of the central bank plus eight percentage points, and a fixed amount of EUR 40 to compensate for the recovery costs.  Below we take a look at how this rule and its accounting and taxation implications can be applied.


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