Hungary extends VAT credit repayment date |
|
10 January 2012 Companies with Hungarian VAT registrations face an extended wait for refunds of VAT owed – credits – following new legislation coming into effect on 1 February. When a company has more VAT inputs than outputs (for example, it buys large amounts of stock which it is holding in a warehouse for sale at some later date), the result will be that it incurs more VAT than it has charged. This means it will have paid over to its supplier VAT which it can reclaim through its regular VAT return. This is known as a VAT credit. Currently, if a company declares a VAT credit in its Hungarian return, it can expect to recover the VAT within 30 days. However, under the new Hungarian VAT rules, this is now extended to 75 days of the return being filed if the amount exceeds HUF 50,000. |
