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Tuesday 16 May 2017
On 2 May Hungary’s Economy Minister Mihály Varga submitted the 2018 budget bill to parliament. The final vote on the bill is expected on 15 June. The 2018 budget bill is one for “people who earn their living from work”, Varga said. The budget targets 4.3% GDP growth, up from 4.1% projected for 2017.
The bill allocates for the Ministry of Foreign Affairs and Trade, in health-care spending, funding for general practitioners’ surgeries, health insurance, local governments, the defence budget, pension funding for women who choose to retire early, old-age pensions and orphans.
The budget bill also targets VAT revenue of HUF 3.090 tln, up 25% from the 2017 target. The VAT rates on catering, internet service and fish are all set to fall to 5% next year.
Hungarian corporate entities will be required to declare foreign bank accounts by 31 January 2018. The requirement to report to the tax authorities invoices with a minimum value of HUF 100,000 has been postponed to 1 July 2018. From 1 January 2018, foreign resident entities will be entitled to liaise with the Hungarian tax authorities by way of e-mail correspondence, even if they are not required to register in the online register database.
EU VAT Updates