- Free product transfers in Hungary are generally subject to VAT if input VAT was deducted, unless they qualify as small-value gifts.
- Small-value gifts (under HUF 5,000 per person per gift) are exempt from VAT, but strict record-keeping is required.
- High-volume giveaways and product samples have specific rules and must be carefully classified to avoid unexpected VAT liabilities.
- Retailers may adjust promotional strategies, such as using lower-cost items or non-product incentives, to minimize VAT impact.
- Proper coordination between marketing, tax, and accounting is essential to ensure compliance and avoid financial risks.
Source: fiscal-requirements.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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