News:

Limit for VAT exemption to be raised to HUF 12 million

25 October 2018

 

On 2 October 2018, the Finance Ministers of the European Union endorsed Hungary's application for a higher limit for VAT exemption. As a result, even from 2019, this current threshold may be increased from HUF 8 million to HUF 12 million, which is equal to the current limit of the so-called KATA tax payers (fixed-rate tax of low-bracket enterprises).

Approximately 600 thousand taxpayers may benefit from the 4 million-raising of the threshold. The main purpose of the Hungarian Government with this provision is to ensure an integrated taxation with the greatest possible savings for small enterprises.

At the same time further measures have been taken, as well: the European Parliament - as proposed - might maximize the VAT rate in 25% in the Member States.

Marcell Andó |