The amendments

Published: 17 March 2004 y., Wednesday
An easing of the cash flow burden posed by VAT on intra-community trade and imports from outside the EU; a hike in administrative tasks for local companies; the introduction of a new VAT grouping scheme; positive changes in VAT regulations concerning call-off stock; these are among a slew of changes to the law on value-added tax passed by Parliament last Monday. Lawmakers also reversed a regulation obliging foreign consignment stock companies to establish branch offices or subsidiaries when serving clients from Hungary. The amendments will mostly take effect upon EU accession on May 1. “The new VAT law brought in several unexpected positive changes,” Rуbert Heinczinger, tax partner at Ernst & Young Advisory Kft, said last week. “Despite its shortcomings, the new law reflects the lawmakers’ efforts to improve Hungary’s competitiveness in the EU,” commented Regina Simon, tax manager at rival KPMG, speaking at the company’s press briefing last Friday. Amongst the positive changes, Simon noted that importers no longer have to finance the VAT on all imports from their cash flow. From May 1, local companies involved in intra-community trading – trading within the EU – do not have to pay VAT in advance on products brought in from within the community. The VAT content of such transactions will have to be declared at the end of the regular VAT declaration period, and VAT paid in that period can be deducted from VAT gains. “This is good news for local companies,” Simon said. According to Simon, however, companies trading in the EU will have to pay attention to administrative tasks like obtaining and regularly updating the EU tax registry number of all their trading partners. This is because the EU’s VAT directive essentially states that companies sell their goods to buyers from another EU country without charging sales tax, and the foreign entity declares and pays the sales tax in its own country. “If the tax number is missing or wrong, it will be impossible to track whether the due VAT was footed by the foreign partner. In such cases, the local tax office will make the local company pay the missing VAT amount,” she explained.
Šaltinis: bbj.hu
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Commission recommends to open excessive deficit procedures for Cyprus, Denmark and Finland

The European Commission today concluded on the existence of excessive deficits in Cyprus, Denmark and Finland and recommended deadlines for their correction to the Council. more »

Globalisation fund: Parliament backs aid to Ireland and Spain

Over 2000 former construction workers in Spain and nearly 600 ex-employees of Irish glass company Waterford Crystal and its suppliers will receive a total of €11 million in aid from the EU Globalisation Adjustment Fund to help with training, business start-ups and job guidance under plans agreed by MEPs and the Council of Ministers. more »

Budget 2011 negotiations coming closer - MEPs decide on tactics

MEPs on Tuesday decided six top priorities and a number of additional key issues for the upcoming negotiations on the 2011 budget. more »

EU-China research cooperation in the spotlight at World Expo Shanghai

The EU-China Science and Technology Week starts today at the heart of World Expo Shanghai. more »

European Investment Bank and European Commission to explore EU climate finance initiative

European Climate Action Commissioner Connie Hedegaard and European Investment Bank President Philippe Maystadt agreed on Monday to explore a joint climate finance initiative for developing countries as part of the European Union commitment made at the UN climate conference in Copenhagen last December. more »

Interconnected energy grid - a first step towards an EU energy community

Sustainability, competitiveness and security of energy supply: the three pillars to the foundation of a new EU energy community. more »

European Commission set to help Palestinian economy with full opening of EU market

EU Trade Commissioner Karel De Gucht and Palestinian Minister of National Economy Hasan Abu-Libdeh today discussed measures to enhance EU-Palestinian bilateral trade relations and to facilitate trade of Palestinian products to EU markets. more »

Affordable hybrid cars, bus systems that get people out of cars, “intelligent” cargo and much more: Brussels showcase for smarter and greener transport innovation

Some of the most innovative and exciting transport research projects funded by the EU are being showcased at the Transport Research Arena (TRA) in Brussels this week. more »

Galileo: European alternative to GPS needs more funding

Nowadays we rely heavily on satellite positioning and navigation, but the only available technology is American. more »

Conference to present the future of transport networks in Europe

The European Commission will reveal how it aims to revamp its transport networks policy in response to the challenges of the 21st century at a conference dedicated to the Trans-European Transport Network (TEN-T) in Zaragoza on 8 and 9 June. more »