The purpose of the bulletin of the National Tax and Customs Administration of Hungary (NAV) is to highlight certain new regulations introduced as of January 1, 2012, for issuing a tax number to taxpayers obliged to register for incorporationand for the registration of certain changes.
As of the date mentioned, NAV has introduced, prior to issuing a tax number, the practice of examining, on the basis of the data available, the tax records of the chief executive of, the members authorised to sign for or members with majority/qualified majority vote (hereinafter: member) in the company to be established.If there have arisen any grounds for refusal under the law, NAV shall refuse to issue a tax number.
Companies with an active tax number similarly undergo a tax registration procedure if they wish to have a new chief executive or member registered, in which case NAV also checks the tax record. If there are any facts revealed that are obstacles to issuing a tax number and these grounds for refusal are not removed by the company despite the notice, the tax number shall be cancelled and the court of registry shall order the forced liquidation of the taxpayer.
The potential obstacles are examined in relation to the persons of the members and the chief executives. The issuing of a tax number must be refused if the chief executive or a member:
is, on the day of submitting the application for the tax number, a representative or qualified owner of another company that has had significant debts for considerable time,
was, within a period of 5 years prior to the day of submitting the application a representative or qualified owner of another, terminated company that terminated with significant tax debts that continue to exist currently or was, within a period of 5 years, a representative or qualified owner of another, terminated company whose tax number was cancelled by the tax authority,
has, on the day of submitting the application for tax number, significant own debts that have existed for considerable time and continue to exist currently.
Taxpayers obliged to register for incorporation continue to meet their registration obligation to the state tax authority in a one-stop shop system, by submitting an application for the registration of incorporation to the court of registry. As a main rule, if none of the obstacles specified in the law are likely to arise based on the data forwarded by the court of registry, the tax registration procedure is performed within 1 work day. If, within the deadline of 1 work day, any of the obstacles is suspected to exist, the procedure shall be performed within 8 work days.
If there is an obstacle and the issuing of the tax number is refused, the decision of refusal shall be subject to appeal and the law furthermore allows for defence for the members or chief executives because of whom the tax authority refused issuing the tax number.