The 2025 tax inspection plan of the Hungarian tax authority was published on 11 March, revealing the areas and obligations to which the tax authority will pay the most attention during this year’s inspections. Although it is advisable to strive for the most correct procedure in all tax areas and to pay the arising obligations, it is also worth taking a look at what the tax authority in Hungary focuses on most of all.
Latest IT methods and AI used also at the Hungarian tax authority
The tax authority primarily uses the data at its disposal to identify where tax deficiencies, errors or omissions may exist, and this year it is already using the latest search solutions and AI to do so. The Artificial Intelligence Working Group set up at the Hungarian tax authority is continuously developing and assisting the selection process.
Based on the 2025 tax inspection plan of the Hungarian tax authority, the following inspections will be carried out this year:
- data reconciliation procedure,
- cooperative procedure,
- compliance inspection,
- tax or customs inspection.
For taxpayers who are fundamentally committed to complying with the rules and meeting their tax obligations, the tax authority will continue to support them in correcting any inadvertent errors, either through data reconciliation procedure or cooperative procedure. On the other hand, they promise immediate, strict and firm action against taxpayers who fail to comply with their tax obligations in a regular and voluntary manner or who employ undeclared workers.
New tool: the data reconciliation procedure
The new procedure proposed in last autumn’s tax package, the data reconciliation procedure, has already been launched by the tax authority for several companies this year. The aim is to give taxpayers the opportunity to correct errors on the basis of the notice, rather than levying a penalty. The procedure is fully electronic by using the customer portal. If a taxpayer has made a genuine error, it can be corrected it within 15 days and avoid a penalty.
The tax authority uses risk analysis methods to detect errors and omissions. In most cases, this is done using the online invoice system and the online cash register, which are automatically compared by the Hungarian tax authority’s systems with the data in the VAT return.
The main objective of the tax authority is to protect compliant taxpayers and budget revenues, so it does its utmost to detect businesses that are circumventing the rules. The authority also considers it important to minimise the burden on compliant taxpayers.
Focal points according to the 2025 tax inspection plan of the Hungarian tax authority
- The 2025 tax inspection plan of the Hungarian tax authority does not change the fact that taxpayers with the highest and best performance will continue to receive special attention and regular audits.
- The system will automatically filter out discrepancies between online invoice data and VAT returns, and between summary reports and control data, as part of the ongoing monitoring of material discrepancies. Additionally, the so called “risky” taxpayers, discrepancies detected in the online cash register and the deviations of EKAER data will be subject to continuous monitoring.
- The tax authorities will continue to give high priority to audits of tax incentives for investments in development, energy efficiency, renovation, items increasing and decreasing the corporate tax base, transfer pricing and the control of prices applied between related companies. One basis for this is transfer pricing reporting.
- In 2025, the tax authorities will continue to review the availability and reliability of data, and this year the aforementioned data reconciliation procedure will also serve this purpose.
- The tax administration will continue to increase its data collection to control taxpayers with a high risk to budget revenue based on a targeted risk analysis. The data are analysed using increasingly sophisticated techniques, and the Hungarian tax authority’s Artificial Intelligence Working Group is playing an increasingly important role in this area.
- Detection and elimination of VAT fraud will remain a focus of the 2025 tax inspection plan of the Hungarian tax authority, and the tax authority will use its full range of tools, including risk analysis and international data exchange.
- Among the sectors that will receive particular attention in 2025 are, for example, internet content providers, construction, tourism, catering, beauty, personal and property protection and motor vehicle and parts dealers.
Early experience suggests that the number of data reconciliation procedures is expected to increase during the year, and in practice we are already seeing an increase in international data exchanges, whereby the tax authority tries to recover debts on current accounts, also by contacting the related foreign tax authorities as well. Investigations based on international data exchange may now also affect individuals, especially in the area of capital income.
The tax consulting team of WTS Klient Hungary has extensive experience in representing businesses at the Hungarian tax authority. Whether it’s an inspection or a subsequent legal remedy procedure, you can rely on our colleagues.
This article provides general information and does not constitute advice.
