Friday, November 15, 2019
On November 12, 2019, Hungary's Ministry of Finance announced that it has submitted to parliament the seventh and final part of its Economic Action Plan, which includes various tax measures.
The newly tabled bill contains proposals to merge four existing social contributions, including the pension contribution, healthcare contribution, and unemployment contribution, into a single levy of 18.5 percent from 2020.
The bill also includes measures to improve rates of value-added tax compliance. Under these changes, most invoices will have to be submitted online. At present, only invoices for amounts of at least HUF100,000 (USD330) are submitted using Hungary's real-time invoice reporting system, which came into force on July 1, 2018.
Furthermore, the bill will require suppliers of most VAT-exempt services, such as private healthcare, education, and real estate sales, to issue an invoice or receipt.
The Hungarian parliament has already approved other tax aspects of the Economic Action Plan. Among others, these changes include: