Tax Alert

The Hungarian government has postponed the introduction of the "E-VAT" system until the end of its state of emergency.

 The first VAT return to be prepared and proposed by the Tax Authority is intended to cover the reporting period starting on 1 October 2021 (within the E-VAT system).

By adopting Government Decree 613/2021 (XI. 8.), the Hungarian government has postponed the introduction of the E-VAT system until the end of the state of emergency. Based on the current rules, the state of emergency will last until the end of 2021; thus, the first VAT returns prepared by the Tax Authority will be proposed to taxpayers in February 2022 at the earliest. This date, of course, may change in the coming weeks.

According to preliminary plans, the preparation of VAT return proposals will be implemented in several steps. First, the proposals will be prepared based on data available from the online invoicing system. However, it is not yet known how this postponement will affect the implementation of other system functions: e.g., the inclusion of data related to import of products and the provision of return proposals for taxpayers who are obliged to submit EU Sales and Purchase Lists or report reverse charge transactions.