From January 2019 the VAT exemption threshold for individuals will be increased to HUF 12 million from the current limit of HUF 8 million. During the summer 2018 the Hungarian Parliament had already adopted the tax rules applicable in 2019, however, some adjustments had to be made in autumn to fully comply with the EU law.
As part of the above tax package, the increase of the threshold of the VAT exemption for individuals is also included. The European Committee supported the request to increase the limit for VAT exemption for individuals from HUF 8 million. The Council Decision had already been adopted earlier and now was ratified by Hungarian Parliament.
This legislative amendment affects hundreds of enterprises by extending their possibilities to earn more revenue, since some of them were trying to avoid the additional administrative burden by not letting their revenue above HUF 8 million.
By Eszter Kamocsay-Berta, Managing Partner, KCG Partners Law Firm