Tax authority to prepare draft VAT return for businesses in Hungary
EnglishIn the future, the tax authority may prepare a draft VAT return for businesses on the basis of the invoices received. Parliament approved a number of tax changes.
Accepting the proposal of the Finance Minister, Parliament decided, among other things, that the personal income tax credit will be deductible in respect of the consolidated tax base from 2021 onwards.
The annual revenue limit and the value limit for the balance sheet total of the small business tax (KIVA) will increase to 3 billion forints, and the turnover limit for the termination of the eligibility for KIVA will increase to 6 billion.
Pálinka distilled at home as well as at contract distilleries will actually become exempt from tax from 1 January 2021, which was presented by Finance Minister Mihály Varga as the "victorious conclusion of the Pálinka War of Independence".
Excise duty on cigarettes and other tobacco products will increase in two stages next year in line with the relevant EU directives; therefore the tax burden on cigarettes will be at least 39,300 forints per one thousand pieces from 1 April 2021.
Parliament also responded to the fact that from next year vehicle tax becomes part of the central budget. In line with this, the right to collect vehicle tax was transferred from the previously competent municipalities to the state tax authority.
With the amendment of the Corporate Tax Act, Parliament entitled sports organizations to spend the support from taxpayers also on protection against the coronavirus epidemic.
