Parliament of Hungary passed the draft tax law amendment

On 4th July 2023, the Parliament of Hungary passed the draft tax law amendment (“the Act” or “the Modification”). For VAT the changes include: As of January 2024, a new chapter will be added to the VAT Act in order to regulate the VAT aspects of the Deposit Refund System (DRS), to be introduced next year. The Modification sets out the framework for the eReceipt concept (an electronic slip which can be issued by retailers), scheduled to be introduced by July 2024. The rules for the deadline for issuing invoices will change from 1 January 2024. As such, an invoice must be issued immediately if the payment of consideration is made by the settlement date (or, in the case of the application of issuing daily summary invoices, by the date of supply). Under the special VAT refund procedure for non-established taxable persons, input VAT incurred on a domestic purchase of immovable property can be reclaimed (provided that the taxable person otherwise meets all the underlying conditions). As of 1 January 2024, the tax rate for publications issued at least four times a week (e.g., daily papers) is 0%.

Source: kpmg.com

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