In addition to the amendments proposed by the Economic Committee, there are no big surprises and new elements in the autumn tax package adopted by the Parliament. The most important difference compared to the version submitted is that the adopted laws do not contain the changes affecting the obligations of partnerships and sole entrepreneurs, which, according to the original plans, would have entered into force as of 2025. In addition, rules restricting the transfer of the right to deduct VAT to indirect customs representatives do not enter into force either. Please find below the most important elements of the tax package.
- Several laws related to personal income tax will also be amended due to termination of the Convention between the USA and Hungary for the Avoidance of Double Taxation; therefore, the provision related to the crediting of the tax paid abroad, among others, will be amended.
- Amendments allowing for the launch of the eVAT system on 1 January 2024 have also been adopted. Using the new submission system is optional, as the traditional ÁNYK-based solution will also be available. It is important to highlight that, when the basic tax return is submitted via the ÁNYK-based solution, self-checking will only be available via the ÁNYK.
- Also in relation to the VAT Act, the rules for e-receipts have been adopted and will enter into effect as from 2025. In accordance with such rules, e-receipts may only be issued electronically, and, at the customer’s request and in the cases set out in the relevant legislation, a hard copy shall also be provided.
- Rules related to the tax allowance for investments and renovations aimed at stimulating the energy efficiency will also change. The rate of the discount will increase to EUR 30 million, provided that, in the case of a renovation, energy efficiency is improved by at least 20%.
- Another important change is that the amount which may be recovered by the keeper or renter of vehicles used for road transport or passenger transport on commercial gas oil per litre will increase from HUF 3.5 to HUF 10, and from HUF 13.5 to HUF 20.
- As part of the autumn tax package, a separate act has been adopted on additional taxes ensuring a global minimum tax level, which will enter into effect on 31 December 2023 in accordance with the EU Directive adopted in December 2022. We will discuss the details in a separate article.
- The tax on utility networks, which entered into effect in 2013, will be removed in two steps. As of 1 January 2024, communications network will no longer be subject to the tax on utility networks, and as of 1 January 2025, this tax will be completely discontinued.
- It has been decided that the suspension of the advertisement tax will be extended until the end of 2024; therefore, this tax is not to be paid for the time being.
- In order to increase the popularity of lottery games, an amendment has been adopted, according to which no personal income tax shall be paid on the prize from next year.
- Amendments affecting the retail sector from 2024 are introduced in the regulations related to the extra profit tax and not in the tax package. As a result of such amendments, the top rate of the retail tax will increase from 4.1% to 4.5%, while tax payers engaging in vehicle fuel retail activity will be subject to different tax bands to the general ones (the part of their tax base not exceeding HUF 500 million will not be subject to taxation, and the part exceeding HUF 500 million will be subject to a tax of 3%).