Each year, the European Commission prepares statistics on the amount of VAT not collected by each member state and the proportion compared to the potential VAT that could be collected. In the case of Hungary, in last year’s report, estimates for 2020 predicted a VAT rate of 6.1 percent, but the final value was much better, 5.1 percent.
This shows that, based on the data of the last decade, a picture of increasingly efficient VAT collection is emerging in Hungary.
Based on the final figures released today, it was revealed, without surprise, that the country actually achieved better results than expected. The VAT rate of 5.1 percent in 2020 is an astonishingly good number, Nowhere else, except in Scandinavia, has VAT fraud been reduced to such an extent
– said Adam Fisher, legal partner of the Niveus Consulting Group.
Prepared by Adó Online Schedule According to the 2019 ‘stumble’, Hungary continues to perform exceptionally well in the fight against VAT fraud, not only regionally, but also in Western European comparisons. According to the expert, the introduction of the online cash register (2014), the EKAER (2015) or even the online account (2018) is behind the improvement, which means that these government measures have had a positive impact on the sector.
The authors of the EU study highlight in the section on Hungary that the 2020 figure shows a significant improvement despite the fact that the decline in GDP due to the coronavirus should have negatively impacted VAT collection. The improved data is due in part to support measures due to the coronavirus pandemic, and in part to a decline Flowing cash They added that they could also play a role.
