The government has successfully represented Hungarian interests in Brussels: the EU accepted the government’s tax arguments in two cases, so half of the value-added tax on rented cars can still be recovered, and business protection and fair budgets against insolvent companies are still guaranteed, MTI reported. R. Eiser Norbert.
The Minister of State for Taxation at the Ministry of Finance said that about 100,000 cars of the company could be affected by the positive rule decided by the Council of the European Union in Brussels. In Hungary, from 2019, in the case of commercial use, tenants have to prove the fact that the business is used only once, and 50 percent of the value-added tax can be deducted on the monthly rent automatically. The rule’s application has now been extended until the end of 2024 by the Brussels Governing Council.
The Secretary of State noted that the drastic reduction in tax evasion is largely due to online tools such as the cash register, EQF or online invoice, but these are not enough for insolvent taxpayers. Therefore, the Council is an important step in the fight against tax evasion until December 31, 2024 for the VAT accounting rules for insolvent taxpayers, usually those who are in liquidation and bankruptcy. Instead of insolvent companies, the buyer pays VAT if he sells a product or provides a service that is more than 100,000 HUF. Norbert Eiser explained that in their case, reverse taxation is a guarantee that the value-added tax due reaches the budget.