Mária Lakatos

Taxation in General: Hungarian Tax System

Secondhand trading – taxation based on the difference

A peculiarity of secondhand trading is, that it is difficult to obtain commodities against invoice since, as a rule, these commodities are the property of individuals who do not issue invoices. The basis of tax assessment in their case is thus the difference between the purchase and the selling prices.

Accordingly, the trader of secondhand items cannot reclaim tax for the commodities purchased, only for those products and services that are necessary for the conduct of his/her/its business.

The basis of assessment of the VAT is the difference and from this a VAT of 27 % is deducted i.e., contrary to how the travel agencies and tour operators are taxed based on margin, the difference already includes the 27 % VAT! The rate of VAT is 27 %, and upon issuing the invoice no VAT is shown in the invoice, neither at the time of procurement nor at the time of selling.

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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