This new reporting obligations will be effective for tax payers who carry out certain transactions involving road transportation, including also foreign established companies that are registered for VAT in Hungary. These transaction are the following:
- intra-Community acquisition and sale
- intra-Community movement of goods for any other purposes
- first taxable domestic sale to a non-end customer.
Tax payers subjected to this new reporting obligation have to request an identification number (“EKAER” number) from the Hungarian Tax Authority regarding each transaction under which number they have to report certain data to the Hungarian Tax Authority.
Please note that the new reporting obligation is applicable only if the above mentioned transactions are carried out by a vehicle subjected to road toll fee. However, in the case of “high risk products” (e.g. foodstuff, agricultural products, some chemicals, clothing, etc) the reporting obligation still applies even if the transportation is carried out by a vehicle which is not subjected to road fee, depending on the weight and value of the products. A further liability in connection with the transportation of high risk products is that the tax payers are obliged to provide a “risk guarantee”.
On the following link, you find the portal where the requests have to be submitted. At the moment, except a few basic information, the system does not run. It will go live on 20 December 2014.
Even if the system is introduced from 1 January 2015, there is a grace period till 31 January.
The Tax Authority will publish some guidance on its webpage shortly. Updates will follow as soon as available.