- The Hungarian National Tax and Customs Administration provided details on new tax exemption rules for small businesses on December 9
- Small businesses in the EU can enjoy VAT exemptions across member states without needing separate VAT registrations starting January 1, 2025
- To qualify for VAT exemptions, small businesses must have EU-wide revenue below 100,000 euros and meet specific VAT thresholds like Hungarys 12 million Hungarian Forint
- Small businesses must obtain a unique identification number with an EX suffix and understand the conditions under which it can be revoked
- They must also follow specific procedures for submitting correct declarations, adhere to reporting requirements, and meet deadlines
- VAT-exempt foreign taxpayers are allowed to report quarterly to ease VAT compliance
- These businesses cannot deduct VAT on domestic purchases except in specified cases
- VAT-exempt taxpayers in Hungary in 2024 can continue their exemptions into 2025 by notifying the Tax Agency by December 31, 2024, and providing revenue details for 2024 by January 15, 2025
Source: news.bloombergtax.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.
