I. Periodic settlement
In cases when the parties make a periodic settlement of the sale of goods or provision of services, or the offset of the sale of goods or provision of services is determined for a period, the completion date will be the last day of the relevant period as of July 1 (now it is the due date of payment). Thus, from the date of entry into force, tax liability arises even at the time of the receipt and credit of advance paid in respect of transactions of periodic settlement. The new rule shall be applied in respect of transactions of periodic settlement, where the whole of the relevant period and the due date of the reimbursement of the offset for the period in question will be after June 30, 2014. (In case of sales of goods, supply of services or telecommunication services effected pursuant to the public service contract, the completion date continues to be the due date for payment.)
Completion date of invoices
According to the VAT Act, there are the following completion dates:
1. General rule: tax liability arises when the transaction takes place complying with the statutory provision.
2. Period settlement: the deadline for payment is the completion date (after June 30, 2014 the last day of the period)
3. Partial settlement: the date of the partial settlement is the completion date
4. Special rule relating to advances: tax liability arises on receipt of the amount of money
All transactions are to be classified under the definition of a completion date.
This change was cancelled before it come into effect.
II. Tax exemption for exports
If the sales of goods do not comply with the terms of tax exemption for exports solely because the exit of the product has exceeded the time limit provided, but the product leaves the EU after 90 but within 360 days in a verifiable way, the sales later can still be tax-free (subsequently, it can reduce the taxes payable).
III. Sales of passenger cars
Sales of passenger cars purchased excluding VAT passed on is tax-free provided that the acquiring taxpayer could not have deducted the VAT, if the acquisition had been charged with VAT (effective from April 21, 2014).
Source: VAT Act, Jogszabályfigyelő (Legislative Monitoring magazine), tax conference)
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