Mária Lakatos

Taxation in General: Hungarian Tax System

Basis of assessment

The basis of assessment shall be increased by the subsidies from the budget (e.g., the price subsidies for medications or natural gas), as well as by other taxes, customs and other liabilities paid in connection with the transaction - the excise tax and accessorial costs shall, e.g., be included in the VAT-base. Some of the accessorial costs, such as, e.g., charges and expenses related to goods on commission, other intermediation, packaging, forwarding, insurance, etc., are effectively mentioned by name in the Act (Áfa tv.). This specific enlistment does not mean that the basis of assessment is composed only by them, i.e., the list is not restrictive, only illustrative of what might belong there. Generally speaking, those accessorial costs are to be included in the tax base which are provided by the seller together with the product, and are related to the sale thereof or the provision of the services. A discount, irrespective of whether it has been expressed in money or in kind, would also modify the VAT base.

Definition

Vat-base: The basis of the value-added tax is the amount, expressed in HUF, which is received in exchange for the product or the service as consideration therefor. Payment of the consideration serving as basis of VAT assessment is possible not only by handing over cash, but by bank transfer or by exchanging the products or services for which consideration is payable by other products or services.

When establishing consideration, associated companies form a special exemption. In their case the VAT base is the consideration, but this is true only in the event that consideration is equal to the market price. If the two differ then, instead of the consideration received, the usual market price shall be taken as basis of the VAT, if the conditions listed hereunder all subsist, namely,

the transaction was concluded by parties who are not independent from (unrelated to) one another.
the consideration is unreasonably high and the seller of the commodities or the services provider is not entitled to deduct the amount of the tax in full.

Taxation in General: Hungarian Tax System

Tartalomjegyzék

Kiadó: Akadémiai Kiadó

Online megjelenés éve: 2022

ISBN: 978 963 664 137 5

Taxation is a scheme for the state to provide revenue. The so collected money could then cover the public spending of the government. These are the so-called allocative and redistributive functions of the state budget. Although, taxation theory discusses the various tax types and analyses the various taxation tools very extensively, there is no absolute answer to the question, when and what type of taxation system would be optimal. Thus this introductory book on taxation deals with the three basic types of taxes - the income tax, the VAT and the corporation tax - in a very pragmatic way. There are legal texts and cases from both the international and also from the relevant Hungarian practice.

This book is recommended not only for students of economics but also for law students and practitioners beside anyone who is interested in the basic regulations of taxation.

Hivatkozás: https://mersz.hu/lakatos-taxation-in-general-hungarian-tax-system//

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