Hungaryʼs VAT gap falls to 6.6%, below Austria, Denmark
Photo by Duncan Andison / Shutterstock.com
Hungaryʼs VAT gap, the difference between expected VAT revenue and that actually collected, fell to 6.6% last year from 21% in 2013, Minister of Finance Mihály Varga said, commenting on an annual report published by the European Commission, according to novekedes.hu.
Photo by Duncan Andison / Shutterstock.com
Varga noted that the rate had fallen since 2014, when the government started requiring businesses to use tills connected directly to the tax office.
He added that the government has since rolled out an electronic monitoring system for truck deliveries and introduced electronic invoicing, squeezing tax evaders further.
The EC study shows the VAT gap in Hungary fell 5.1 percentage points in 2018, the biggest drop in the EU. Hungaryʼs estimated VAT gap for 2019 is under those of Austria and Denmark, Varga said.
He added that the crackdown on tax evaders would continue as a lower rate of tax avoidance allows the government to continue its policy of reducing taxes, even during the coronavirus crisis, while maintaining the fiscal balance.
Czech Economic Sentiment Hits 1-year High
Chinese President to Visit Budapest in May
Hungarian Gen Z Auto-buyers Prioritize Affordability
Liz & Chain Rooftop Bar Debuts Sustainable Cocktails
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
