COVID tax measures to be continued in Hungary
Latest proposal by the Hungarian Ministry of Finance aims to extend tax measures to help Hungarian SMEs.
Due to the COVID pandemic and in order to facilitate liquidity for SMEs in Hungary, the deadline for VAT reimbursement has been shortened. As a general rule, SMEs should receive reclaimed VAT within 30 days instead of 75 days. Furthermore, the deadline for SMEs qualifying as ‘trusted’ taxpayers is even shorter, 20 days, which is the swiftest in the European Union.
Additionally, COVID-specific tax payment reliefs have also been introduced: companies may apply for payment in instalments, deferred payment and even partial tax reduction for tax debts under HUF 5 million (approximately EUR 14,000). Ministry of Finance now proposed to further extend those measures by the end of 2021 to boost the restart of the economy as well.