The accelerated VAT recovery is now above 1500 billion forints
Since last May, small and medium-sized enterprises can get turnover tax back under only 20 days, which is the shortest period allowed for VAT allocation in the European Union. “Due to this measure, until the end of August 2021, companies received a total of 1550 billion forints earlier” – informed Norbert Izer the MTI.
“The tax office pays quicker but looks after the money better than they used to” – summarized the State Secretary of the Ministry of Finances, who is responsible for tax matters. In August, for example, 88 companies received their turnover tax earlier, making for an overall amount of 168 billion forints.
According to the State Secretary, the tax office’s differentiated risk analysis system makes sure that while honest enterprises get their respective turnover tax back faster, VAT fraudsters do not get a chance to damage the state’s treasury. Also, from this year onward, the job of risk assessors is assisted by multiple online tools. Since all invoices, those issued to the public included, can be seen by the tax office, even before handing the VAT statement in, suspicious transactions can immediately be screened, following the arrival of the accounts data.
Statistics prove the effectiveness of the examination regarding the allocations – said Norbert Izer. In the first half of this year, 35 percent of declarations (more than 46 thousand out of 130 thousand) underwent thorough, detailed risk analysis. Examination was conducted solely for justified reasons. Only people caught during the evaluation of risks, along with those who were more likely to make an unauthorized reclaim, were selected for inspection.
One of the most important measures of the Covid-19 crisis was the accelerated allocation of VAT. It provided support for small and medium-sized enterprises, who, owing to this, could avoid financial difficulties while taking a more active role in the economy – Izer emphasized.
He noted that Hungary, too, could gain a serious competitive advantage. Since the swift allocation of VAT motivates investment, and so besides the increased export, a new impetus in the development of the construction industry can also be possible.
Small and medium-sized enterprises could receive their money, in 30 days instead of the previous 75 days. SME’s classified as trustworthy, based on their tax history, can receive the reclaimed amount even sooner, and in their case, the disbursement period could be shortened to as low as 20 days. Businesses that have previously violated tax rules that resulted in a discommodity to the budget and honest taxpayers, are therefore labeled as risky and can only get VAT back within 75 days – reminded Izer.