National Tax and Customs Administration of Hungary - Guidelines, summaries on taxation

Guidelines, summaries on taxation

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<article contentid="4729355">
<title>Information on the Immigration Surtax</title>
<url>taxation/taxinfo/Information_on_the_Im20180823.html</url>
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<year>2018</year>
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Information on the Immigration Surtax

The Act XLI of 2018 on Amending Certain Tax Laws and Other Related Laws as well as 
on Immigration Surtax (hereinafter referred to as IS Act) was published in the 117th edition of the Hungarian Official Gazette (Magyar Közlöny) on 25th July 2018, the regulations of which concerning the immigration surtax are effective 
as of 25th August 2018.

1. Object of the immigration surtax

Immigration surtax shall be paid on

<ul>

<li>
financial support of the Hungarian performance of the activity assisting the 
immigration or 
</li>

<li>
financial support of the operation of the organisation which performs activity 
assisting the immigration and having a seat in Hungary.</li>
</ul>

All program, action, activity, which directly or indirectly aims at promoting 
the immigration and takes place in the framework of

<ul>

<li>media campaigns, continuation of media seminars, and the participation in it;</li>

<li>education arrangement;</li>

<li>networking and operation of a network or</li>

<li>propaganda activity which shows the immigration in a positive light</li>
</ul>

is considered to be an activity assisting the immigration.

According to the IS Act, resettlement of people from their resident country - 
intended to be definitive - to another country is regarded as immigration.

When implementing the IS Act, cases described in Act I of 2007 on the Admission and Residence of Persons with the Right of Free 
Movement and Residence are not regarded as immigration.

According to Paragraph (1) of Section 1 of Act I of 2007, Hungary shall ensure 
the right of free movement and residence

<ul>

<li>

<a name="pr8"></a>with the exception of Hungarian citizens, to nationals of any Member State of 
the European Union and States who are parties to the Agreement on the European 
Economic Area, and to persons enjoying the same treatment as nationals of States 
who are parties to the Agreement on the European Economic Area by virtue of an 
agreement between the European Community and its Member States and a State that 
is not a party to the Agreement on the European Economic Area with respect to 
the right of free movement and residence (hereinafter referred to as "EEA nationals")

<li>to the family member of an EEA national who does not have Hungarian citizenship, 
accompanying or joining the EEA national (hereinafter referred to as "family members 
of EEA nationals")</li>

<li>

<a name="pr10"></a>to the family member of a Hungarian citizen who does not have Hungarian citizenship, 
accompanying or joining the Hungarian citizen (hereinafter referred to as "family 
members of Hungarian citizens") 
<a name="pr11"></a>
</li>

<li>to any persons accompanying or joining an EEA national or a Hungarian citizen, 
who: 
<a name="pr12"></a>
</li>

<ul>

<li>are dependants or members of the household of a Hungarian citizen for a period 
of at least one year, or who require the personal care of a Hungarian citizen 
due to serious health grounds, 
<a name="pr13"></a>
</li>

<li>had been dependants or members of the household of an EEA national in the country 
from which they are arriving, or who require the personal care of an EEA national 
due to serious health reasons,</li>
</ul>
</ul>

<a name="pr14"></a>and whose entry and residence has been authorized by the authority on grounds 
of family reunification.

2. Subject of the immigration surtax

The subject of the immigration surtax is the organisation which performs the financial support of the activity assisting the 
immigration, or the operation of an organisation carrying out an activity assisting 
the immigration and having a seat in Hungary.

The party, the party foundation, furthermore the organisation the exemption of 
which is provided by an international agreement or reciprocity is not considered 
as subject of the immigration surtax. As to whether reciprocity applies, shall 
be determined relying on the directive of the minister in charge of taxation issued 
in agreement with the minister in charge of foreign policies.

The subject of the immigration surtax is obliged to submit a declaration to the organisation carrying out an activity assisting the immigration and having 
a seat in Hungary until the 15th day of the month following the month when the financial support was provided 
about the fact that the immigration surtax was fully declared. The organisation 
carrying out an activity assisting the immigration and having a seat in Hungary 
shall submit this declaration until the 15th day of the month following the month when the declaration was received and at 
the same time the name, mailing address and other known identification data of 
the support provider as well as the amount of the support have to be communicated. 
The state tax authority issued the form “BEVKA” for the declaration, the usage 
of which is recommended for taxpayers.

If the state tax authority determines that the declaration is false, then it 
obliges in a resolution the taxable person providing the support to pay the undeclared 
tax and the tax surcharge which is 50% of it.

If organisation carrying out an activity assisting the immigration and having a 
seat in Hungary does not have the declaration until the 15th day of the month following the month when the support was used, then the subject 
of the immigration surtax – instead of the initially liable one – will be the organisation carrying out an activity assisting the immigration 
and having a seat in Hungary.

3. The base and rate of the immigration surtax

The base of the immigration surtax shall be the amount of the financial support provided for the activity assisting the immigration, or the operation of an 
organisation carrying out an activity assisting the immigration and having a seat 
in Hungary.

If the subject of the immigration surtax is the organisation itself carrying 
out an activity assisting the immigration and having a seat in Hungary, then the 
base of the immigration surtax shall be the cost incurred during the activity assisting immigration.

The rate of the immigration surtax shall be 25% of the base of the immigration surtax.

4. Rules concerning the assessment of the immigration surtax

The subject of the immigration surtax is obliged to assess – on a monthly basis 
–declare and pay the immigration surtax at the latest until the 15th day of the month following the month in which the provision of the support took 
place.

If the subject of the immigration surtax is the organisation carrying out an 
activity assisting the immigration and having a seat in Hungary, then it is obliged 
to assess – on a monthly basis – declare and pay the immigration surtax at the 
latest until the 15th day of the month following the month in which the financial support was used.

The immigration surtax shall be declared by using the form No. 1897 and transferred 
to the revenue account 10032000-01079139 (tax code 416).

It is the state tax and customs authority which performs the tax administration 
duties related to the immigration surtax.

Revenues collected through the immigration surtax belongs to the central budget 
and serves exclusively for covering tasks related to border protection.

National Tax and Customs Administration

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</article>
<article contentid="4699613">
<title>Information regarding the obligation to pay duties related to the purchase of immovable property</title>
<url>taxation/taxinfo/DUTYOFIMMOVABLEPROPERTY.html</url>
<starttime>
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<year>2017</year>
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Information regarding the obligation to pay duties related to the purchase of 
immovable property

When shall one pay duties?

In the event that the ownership of a real property (whether land or housing / residential property) is acquired in return for a 
purchase price, the party acquiring the real property (i.e. the purchaser) shall 
– as a general rule – pay duty on the onerous transfer of property.

Duty on the onerous transfer of property shall be paid on the acquisition of 
certain rights of pecuniary value related to real property, acquisition of property through the termination of such rights and the transfer 
of the exercise of usufruct enjoyed in respect of real property. In this context, 
right of pecuniary value means leasehold, usufruct or right of use – including 
the right of use of a holiday facility and of a time share accommodation – besides 
asset management.

Duty base, rate of duty

The general rate of the duty on onerous transfer of property is 4% of the market 
value of the property acquired, including encumbrances.

In the case of exchanging the ownership of real properties, except residential property and related rights, the basis of the duty is the 
market value of the real property acquired thereby.

In case the exchange of residential property, the base of the duty is the difference between the market values of the residential 
properties – without the additional liabilities.

In case the private individual owner sells or exchanges their residential property within the period before or after 
the year of purchase of their residence, the base of the duty is the difference between the market values of the purchased 
and the sold or exchanged residential properties – without the additional liabilities 
(It follows from the above that if a private individual sell their land property 
and intend to purchase a residential property from the proceeds therefrom, the 
above rule cannot be applied: this rule can exclusively be applied to the sale 
and purchase of residential properties).

If the private individual performs the exchange of several residential property or purchases 
and sells several residential properties within a year the establishment of the value difference serving as the base of duty payment 
may take the exchange or sale with the most favourable duty conditions into account 
instead of each and every sale and purchase of identical legal titles. If the 
private individual is unable to certify another exchange or sale of residential 
property conforming to the above conditions, the duty liabilities after the exchange 
and acquisition of residential property are established along the lines of the 
general rules.

It is important to note that in case a private individual exchanges or purchases a residential property and sells another property of theirs within the preceding or following year and 
if the market value of the acquired residential property is smaller than that 
of the exchanged or sold one, no duty payment is required.

If the private individual declares at the latest imposition of duty notification of buying a residential property within one year after the residential property purchase sells and calls for the state 
tax authority to ascertain the duty on acquisition of residential property according 
to the rules of purchase replacing change, then the state tax authority determines the market value of purchased residential 
property, and suspends the process without disclosing the decision.

When the private individual demonstrates that within a year of buying a residential 
property sold to another residential property, the suspended procedure shall be 
conducted, and establishes the amount of duty payable under the difference between 
the market value of the purchased and sold residential property.

In that case, however, if the private individual declares on intention of residential 
property’s sale as described above, and requests that under the rules of purchase 
replacing change should be applied for the establishing of the duty payable, however, 
does not justify the sale of the residential property within one year, then the state tax authority imposes additional fees calculated according to the rate of double the prevailing central bank base 
rate on the basis of market value purchased residential property from the submission 
date of private individual’s declaration.

In the event that the acquisition of property is based on a contract for support, life annuity 
or inheritance, the base of the duty is the market value of the property acquired.

In the case of usufruct recorded into the property register or use established concurrently 
with an onerous transfer of property, the party acquiring ownership pays a duty on onerous transfer of property as 
per the market value, reduced by the value of usufruct or use calculated in accordance 
with certain rules, while the usufructuary or user pays a duty corresponding to 
the calculated value of usufruct or use.

Duty exemptions and allowances applicable to the purchases of real property

Acquisition of the ownership (ownership share) of land property suitable for 
the construction of a residential building and the right of pecuniary value established 
on such real property is exempt from duty on onerous transfer of property if the party acquiring the 
property builds a residential building on such real property within 4 years of 
the date of submission of the contract for dutiable purposes, and if the net floor 
space of the residential suite(s) in the building is minimally 10% of the permissible 
building space fixed in the applicable general zoning plan. The party acquiring 
the property must notify the Tax Authority regarding his intention to build a 
residential building, until the date when the order concerning payment of the 
duty becomes definitive.

The purchase of a new residential property with a market value of HUF 15 million or less, built or developed by a business entity for the purpose of resale, and the purchase of a share in such property are exempt from duty on onerous 
transfer of property. If the market value of the new residential property is over 
HUF 15 million but below HUF 30 million, and if the buyer does not provide proof 
of the sale of another property, the applicable duty must be established as follows: 
First, the amount of the duty that would otherwise be paid on the total value 
of the housing unit must be established ( 4% of the market value), then the amount 
of the duty payable on HUF 15 million, calculated in accordance with the above 
method (i.e. HUF 600,000), must be subtracted from this amount. The sum that thus 
remains is the duty payable.

Payment relief: deferred payment and instalment payment with reference to the 
payment of duties

Deferred payment and payment instalment (hereinafter collectively referred to 
as “payment relief”) may be granted if the person obliged to pay duty cannot pay 
it in one lump sum until the fixed date.

Thus, payment reliefs can be granted if the payment difficulty

a) cannot be attributed to the applicant or if he has taken reasonable measures 
to prevent payment difficulty in a manner that can be expected in the given situation 
and, furthermore,

b) is of a temporary nature, that is, payment of the tax at a later time is likely.

In respect of private individuals, payment reliefs may be granted despite point 
a) if the applicant foresees or is able to provide some form of evidence demonstrating 
that payment of the tax at that very time or in a lump sum would constitute unreasonable 
hardship on his family, given his income and his financial and social circumstances.

There is no statutory regulation prescribing the number of instalments for which 
an application can be lodged.

The submission of an application is free of duties for natural persons – including 
private entrepreneurs here – but economic operators are obliged to pay a procedural 
duty of 10,000 HUF. According to the Act on the Rules of Taxation the procedure 
for automatic payment in instalments initiated by the trusted taxpayer at the 
state tax authority is exempted from duty. The form required for the submission 
of such an application can be downloaded from our Hungarian site (<a href="http://www.nav.gov.hu/">www.nav.gov.hu</a>) from the menu item “Letöltések-egyéb” / “Adatlapok, igazolások, meghatalmazásminták” 
/Adatlapok fizetési könnyítésre és/vagy mérséklé and, alternatively, the same 
form is available at any Customer Service Offices of the Hungarian Tax and Customs 
Administration (NTCA).

Upon the request of a private individual, the tax authority may reduce or cancel 
payable duty debts, penalties and surcharges of the individual if payment of such 
duties would seriously endanger the livelihood of the person obliged to pay such 
duties and that of his close relatives living in the same household. The tax administration 
may make any reduction contingent upon the payment of part (or all) of the unpaid 
debt.

Notification of the acquisition of property

Acquisition (termination) of ownership rights in real property, or a right of 
pecuniary value related to such real property must be reported to the real property 
supervisory authority for dutiable purposes by way of the submission (form ‘B400 
must be used for the announcement) of the pertinent contract (document). Reporting 
for dutiable purposes shall be effected by filling out the appropriate application 
form for registration in the real property register. In the event of failure to 
fulfil the reporting obligation in connection with the property acquisition, by 
providing such report in default of the 30-day deadline defined in a separate 
statutory regulation, or by providing an incomplete report, the subject of duty 
payment obligation is liable to pay a default penalty, in excess of the duty payable, 
which amounts up to HUF 200,000 in the case of private individuals, while in the 
case of other taxpayers it is HUF 500,000.

Tax authority sends an English language informative letter together with the 
resolution establishing duty payment obligation to the party acquiring the propety.

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</article>
<article contentid="1835354">
<title>Tax exemption for the foreign traveller</title>
<url>taxation/taxinfo/VAT_foreign_traveller.html</url>
<starttime>
<timestamp ms="1499939040000">
<year>2017</year>
<month>7</month>
<day>13</day>
<dayofweek>5</dayofweek>
<hour>11</hour>
<minute>44</minute>
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Basic Rules of VAT Exemption of Foreign Travellers

2017

Within the
framework of export tax exemptions, the VAT Act,<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn1" name="_ftnref1" title="">[1]</a>
in line with the provisions of the VAT Directives,<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn2" name="_ftnref2" title="">[2]</a>
contains special rules for the exemption of the supply of goods, in relation to
which a foreign traveller buys a product, which is transported from the
territory of the European Community (hereinafter: Community) as part of the
personal luggage of the foreign traveller. The transportation of the goods form
the territory of the Community within 90 days from their supply and the
certification of the exportation by the customs authority are prerequisites of
the exemption.

Who is a foreign traveller?

For the
purposes of the VAT Act a ‘foreign traveller’<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn3" name="_ftnref3" title="">[3]</a>
shall mean a natural person who is not a national of any Member
State of the Community, and who has no right of permanent residence in any
Member State of the Community, furthermore, a natural person who is a national
of any Member State of the Community, however, his permanent address<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn4" name="_ftnref4" title="">[4]</a> is outside
the Community (i.e., in a third country).

Conditions to be met in relation to
the purchase of goods

The total value of the
consideration, including VAT, must be more than 175 euro or the equivalent in
national currency.<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn5" name="_ftnref5" title="">[5]</a> The price of each product
does not need to be higher than that amount, if the total price of the goods,
stated on the same invoice is higher than EUR 175. In 2017 the HUF amount of
the limit expressed in EUR is calculated at the official HUF/EUR exchange rate
published by the NBH on the first working day of October 2016, i.e. 3 October 
2016,
and the amount resulting from the conversion must be rounded to HUF 1000.<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn6" name="_ftnref6" title="">[6]</a> Consequently, in 2017 the
limit in HUF is HUF 54,000.

The foreign traveller must be able
to verify his legal status by producing a valid travel document or some other
form of identification in the form of a document recognized by Hungary
(hereinafter referred to collectively as “travel document”).<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn7" name="_ftnref7" title="">[7]</a>

The foreign traveller must ask for
an invoice reflecting the supply of goods. The data of the identification of
the foreign travellers on the invoice (and simplified invoice) and the VAT
refund application form must be the same as the data contained in the travel
documents of the foreign traveller.

With a view to the implementation of
exemption, the supplier of the goods fills out the VAT refund application form
when so requested by the foreign traveller, of which two copies shall be handed
to the foreign traveller, (the third shall be retained by the vendor).

What do you need to know about the
VAT refund application form?

The VAT
refund application form must contain the following information:<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn8" name="_ftnref8" title="">[8]</a>

name,
address and tax number of the vendor;

name
and address of the foreign traveller and the number of his/her travel document 
(completed
on the basis of the data contained therein);

number
of the invoice made out on the supply of goods;

total
invoiced amount on the supply of goods, inclusive of VAT;

a
place where it can be signed and sealed in proof of exportation endorsed by the
customs office of exit from the territory of the Community.

The VAT
refund application form shall be printed in at least Hungarian, English,
German, French and Russian languages, and shall be filled out in Hungarian,
English, German or French languages. <a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn9" name="_ftnref9" title="">[9]</a>
A VAT refund application form is completed by the supplier of the goods, based
on the data of the invoice or simplified invoice that certifies the purchase.
One VAT refund application form may contain the data of only one invoice.<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn10" name="_ftnref10" title="">[10]</a>

A regular
form provided or a form approved by the tax authority may be used as the VAT
refund application form. The ‘VAT refund application form for foreign
travellers’, introduced by the Tax Authority (i.e. VAT refund application form)
and its completion guide may be obtained in large post offices and may be
ordered to be delivered to any post office. If the vendor intends to use a VAT
refund application form other than the form introduced by the Tax Authority,
the form may be used, if it has been previously approved by the Tax Authority<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn11" name="_ftnref11" title="">[11]</a>. The VAT refund application
form, used regularly by the vendor and approved by the Tax Authority must be
available at the vendor.

For how long and in what way can
products be exported from the territory of the Community?

The
exemption may be applied to the supply of products or goods pursuant to Section
99 of the VAT Act only if the customer exits the goods purchased in Hungary
from the territory of the country, with the simultaneous presentation of the
original copy of the invoice (or simplified invoice) to the customs authority,
within 90 days from purchase in his-her personal luggage, and the customs
office of exit from the Community certifies the exit by affixing its seal and
endorsement on the VAT refund application.<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn12" name="_ftnref12" title="">[12]</a>
The customs authority endorses the VAT refund application form only when the
goods are transported to a country outside the European Union. Subsequent certification
of exit on the tax reclaim sheet may not take place. More than one VAT refund
application forms may be endorsed in the course of one customs procedure. (The
customs authority shall withhold the second copy of the VAT refund application
form, sealed and endorsed, from the foreign traveller.<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn13" name="_ftnref13" title="">[13]</a>)

Other requirements of exemption

Even if
other statutory conditions prevail, the supply of goods may be exempt from the
tax pursuant to Section 99 of the VAT Act, only if the first copy of the VAT
refund application form, certifying the exportation of the goods within the
deadline, endorsed and sealed by the Customs Authority, is available at the
vendor. In order to receive the tax refund, the foreign traveller (or his
proxy) must return also his own invoice (or simplified invoice) copy to the
vendor.

How can the exemption be claimed?<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn14" name="_ftnref14" title="">[14]</a>

The exemption may be applied
indirectly, i.e. through the subsequent refund of the charged VAT to the
foreign traveller. Foreign travellers may request the refund of the tax paid in
relation to the supply of the goods from the vendor after the exportation of
the goods, by submitting the documents required for the tax refund and
supporting the lawfulness of the exemption.

The vendor
reports the VAT charged to the foreign travellers in the supply of goods as
payable tax in the declaration for the tax assessment period that contains also
the date of the supply of goods. The vendor may deduct the tax, refunded to the
foreign traveller in his declaration prepared for the tax assessment period,
during which the tax was refunded to the foreign traveller.<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn15" name="_ftnref15" title="">[15]</a>

Contrary to the above, the vendor
may also decide, at his own risk, to sell the goods to the foreign traveller
free of VAT (i.e. not to charge tax to the foreign traveller in the invoice
issued for the supply of goods). Even in such cases the foreign traveller must 
present
to the vendor the first copy of the VAT refund application form, endorsed and
sealed by the Customs Authority. If, e.g., the vendor is unable to support the
lawfulness of the exemption pursuant to Section 99 of the VAT Act, and the
transaction cannot be exempt of tax pursuant to the other requirements of the
VAT Act either, it is advisable for the vendor to declare and pay the tax on
the supply of goods in a self-revision of the tax assessment period, which
includes also the date of the supply of goods. (The vendor may not apply
exemption to any transaction pursuant to Section 99 of the VAT Act, if the VAT
refund application form, endorsed and sealed by the Customs Authority is not
available, or if the goods are exported over a period of 90 days.)

How to apply exemption applied
within the framework of tax refund?

The
foreign traveller may apply for VAT refund to the taxable person from whom the
goods were purchased. In order to receive VAT refund, the first copy of the
original VAT refund application form, endorsed by the competent Customs
Authority, and the invoice issued by the vendor must be submitted to the
supplier.

Refund of
VAT may be requested by a person acting in the name and behalf of the foreign
traveller who presents a power of attorney made out in his/her name in writing
by the foreign traveller. The proxy or representative of the foreign traveller
shall hand over to the vendor power of attorney made out in his/her name in
writing.<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn16" name="_ftnref16" title="">[16]</a>

The refund
shall be paid to the foreign traveller in forints, in cash. However, the
currency and the terms of payment may be altered subject to mutual consent by
the vendor and the foreign traveller.<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn17" name="_ftnref17" title="">[17]</a>

It is the
vendor’s responsibility to ensure, simultaneously with the tax refund, that the
invoice (simplified invoice) made out on the supply of goods cannot be used for
claiming any additional refund by affixing “VAT refunded” on the original copy
of the invoice.<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn18" name="_ftnref18" title="">[18]</a> The supplier must make a
photocopy of the document, which is no longer suitable for additional VAT
refund prior to the return of the invoice (simplified invoice) to the foreign
traveller, and shall keep that photocopy in his records.

The
customs and other rules applicable to passenger traffic are described in detail
 in the Information for travellers under
the menu point called Publications on the homepage of the tax authority (<a href="http://www.nav.gov.hu/">www.nav.gov.hu</a>).

National Tax and Customs Administration (NAV)

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref1" name="_ftn1" title="">[1]</a> Act CXXVII of 2007 on Value Added
Tax

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref2" name="_ftn2" title="">[2]</a> Article 147 of Council Directive
2006/112/EC on the common system of value added tax

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref3" name="_ftn3" title="">[3]</a> Paragraph (10) of Section 259of the
VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref4" name="_ftn4" title="">[4]</a> With regard to the permanent
address of the natural person, Point 11 of  Section 259 of the VAT Act and Articles 12-13
of the Implementing Regulation No. 282/2011/EU of the Council must also be
applied.

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref5" name="_ftn5" title="">[5]</a> Paragraph (1) a) of Section 99of
the VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref6" name="_ftn6" title="">[6]</a> Paragraphs (1)-(2) of Section 256  a) of the VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref7" name="_ftn7" title="">[7]</a> Paragraph (1) b) of Section 99and
Paragraph (2) of Section 99 of the VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref8" name="_ftn8" title="">[8]</a> Paragraph (10) of Section 99of the
VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref9" name="_ftn9" title="">[9]</a> Paragraph (11) of Section 99of the
VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref10" name="_ftn10" title="">[10]</a> Paragraph (2) of Section 99of the VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref11" name="_ftn11" title="">[11]</a> The approval of the form to be
applied falls within the scope of competence of the Central Management of the
National Tax and Customs Administration, Department of Matters of Specific
Competence.

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref12" name="_ftn12" title="">[12]</a> Paragraph (1) c) of Section 99and
Paragraph (2) a) of Section 98of the VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref13" name="_ftn13" title="">[13]</a> Paragraph (3) of Section 99of the
VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref14" name="_ftn14" title="">[14]</a> Paragraph (4) b) of Section 99of
the VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref15" name="_ftn15" title="">[15]</a> Paragraph (9) of Section 99of the
VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref16" name="_ftn16" title="">[16]</a> Paragraph (5) b) of Section 99of
the VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref17" name="_ftn17" title="">[17]</a> Paragraph (7) of Section 99of the
VAT Act

<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftnref18" name="_ftn18" title="">[18]</a> Section 99(8) of the VAT Act

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<article contentid="4647991">
<title>Rules of Insurance Tax</title>
<url>taxation/taxinfo/rules_of_insurance_tax.html</url>
<starttime>
<timestamp ms="1488879180000">
<year>2017</year>
<month>3</month>
<day>7</day>
<dayofweek>3</dayofweek>
<hour>10</hour>
<minute>33</minute>
<sec>0</sec>
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<month>3</month>
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<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>

Key Rules on Insurance Tax

2017

The Insurance Tax is a tax on
turnover imposed on the insurance industrythe rules of which are given in Act
CII of 2012 (hereinafter referred to as ‘the IT Act’). The revenue generated
from the tax shall be revenue for the central budget.

1 Subjects of the tax liability, taxable persons

The
provision of insurance services – under the IT Act, comprehensive insurance as
well as property and accident insurance – shall
be subject to tax if the location of risk<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn1" name="_ftnref1" title="">[1]</a>
is in Hungary (Section 2 of the IT
Act).

Compulsory vehicle liability
insurance, health insurance<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn2" name="_ftnref2" title="">[2]</a>
and agricultural insurance<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn3" name="_ftnref3" title="">[3]</a>
shall not be subject to insurance tax.

<tbody>

<tr>

Comprehensive
 insurance<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn4" name="_ftnref4" title="">[4]</a> 

</td>
<td valign="top" width="300">

Property and
 accident insurance<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn5" name="_ftnref5" title="">[5]</a> 

</td>
</tr>

Comprehensive
 road vehicle insurance

(damage caused to road
 vehicles, non-engine driven land vehicles) 

</td>
<td width="300">

Accident
 insurance

(Including work-related accidents
 and illnesses) 

</td>
</tr>

<tr>

Comprehensive
 rail vehicle insurance

(any
 and all damage or loss occurred to rail vehicles) 

</td>
<td valign="top" width="300">

Cargo insurance

(including goods, items of
 luggage and any other items of property)<a href="http://navbelso.apeh.local/cms/sites/default/js/empty#_ftn6" name="_ftnref6" title="">[6]</a> 

</td>
</tr>

<tr>

Comprehensive
 aircraft insurance

(any and all damage or loss
 occurred to aircrafts) 

</td>
<td width="300">

Insurance against
 fire and natural disasters

(all property damage caused
 by fire, explosion, thunderstorm, other natural disasters other than
 thunderstorm, nuclear energy, landslides, ground subsidence, earthquakes) 

</td>
</tr>

<tr>

Comprehensive
 watercraft (used on sea, lakes or canals) insurance