Mária Lakatos

Taxation in General: Hungarian Tax System

Special methods for establishing VAT

The simplified methods for paying VAT are included in the EU Directive and their goal is to simplify the process of VAT payment and to reduce the tax burden. This is the reason, why it covers a relatively large circle of tax clients, whose economic performance, does not influence the GDP of a given country, the VAT collected thereby and, thus, the amount of the VAT payable to the EU, to a considerable extent. The simplified methods of determining of the VAT payable are applicable in the following branches:

small businesses,
retail outlets,
small rural producers,
tour operators,
secondhand shops.

In case of small businesses the obvious goal is to simplify the burdens stemming from keeping records and the administrative burdens of payment. It is a general rule, that small businesses are treated as end-users and within certain limits they are granted personal exemption by right of the category they fall into:

From 2019 the limit for the revenues of small businesses was HUF M12. From 2025 it was increased to HUF 18M.

As regards the specific deals, small businesses are eligible for personal exemption also if their purchases from the EU are below EUR 10,000 in the given year.

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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