The 27% rate of value added tax in Hungary is the highest in the European Union. In the event of an incorrect classification, this is the tax rate that can probably hurt you the most. Our experience shows that companies do not always ask for value added tax consulting in advance, not even for special, large-scale transactions where the VAT treatment is anything but simple. The parties concerned are first confronted with the VAT problems of a given transaction when the tax authority rejects the deduction of the VAT, and imposes a tax penalty amounting to 50 percent of the deducted tax, or when the client refuses to pay the invoice because they believe the tax has been handled incorrectly.

Value added tax consulting for chain transactions

This is why it is particularly important for the VAT burden to be determined in advance, possibly in consultation with the client. Having this discussion means you can also identify the players in the chain transaction and consult with the logistics people, as the special features of a customer chain can impact on taxation too. This is the type of tax that inspectors really focus on during inspections, in light of the related tax frauds. We help taxpayers working in good faith to develop their processes in such a way that they can sleep easy if a tax inspection does come along.

You can save time and money with compliance work

The importance of administration cannot be emphasised enough with regard to value added tax. With a correct tax assessment you are only half the way there. You also need to make sure that all of the related systems are well coordinated, and the NAV inspectors are given the right data and supplier certificates during any tax inspection. Alongside general value added tax consulting we also help our clients prepare their VAT returns and other documents related to value added tax. Keeping the administrative and compliance work related to tax consulting in one hand means our clients can save both time and money. We develop long-term working relationships with all our clients, and take full account of all their needs.

Core services:

• VAT classification of transactions, paying close attention to special transactions, such as transfers of business divisions and properties, product supplies involving installation and assembly, syndicate structures, management of complex chain transactions
• registration of foreign companies in Hungary for VAT purposes with full representation, including support during tax inspections as well
• VAT returns, summary reports, Intrastat reports, preparation of forms for reporting and amending data
• advice and compliance support in EKAER matters (Electronic Public Road Trade Control System)