Mária Lakatos

Taxation in General: Hungarian Tax System

Small rural producers – compensation surcharge

Small rural producers also pay or may pay VAT in a way different from the general public. While for the travel agencies and tour operators taxation based on the margin is obligatory, small rural producers can decide for themselves whether they calculate the VAT payable thereby according to the standard rules or they use the compensation surcharge.

If they choose this latter, then, upon the sale of their commodities they receive the so-called compensation surcharge. However, they cannot reclaim the VAT paid thereby on the products and services they have purchased. The goal is this, for they get a lump sum compensation for the VAT paid thereby for the commodities and services they have previously purchased.

Ratio of the compensation surcharge:

for plants, vegetables, fruit: 12 %,
for product of animal origin 7 %,
for services: 7 %,
E = F × A/100, where
- “E” is the amount recognized as compensation surcharge,
- “F” is the procurement price for the product or service purchased, and
- “A” is the compensation surcharge expressed in percentage.

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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