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Accountants say itemized VAT return could replace planned VAT rise

The National Association of Accountants (MKOE) believes the introduction of itemized VAT returns could replace a planned VAT rise, the professional group told MTI on Saturday.

Introducing itemized VAT returns would make audits simpler and more efficient, MKOE said. It would help in the crackdown on the shadow economy and raise VAT revenue, it added.

MKOE suggested the state could subsidize the purchase of IT equipment by SMEs necessary for itemized VAT returns.

The association proposed the introduction of itemized VAT returns to the National Economy Ministry and the tax office in February.

National Economy Minister György Matolcsy on Friday said the government plans to raise the VAT rate from 25% to 27%.