MOSZ would fight against cheating meat importers

The Agricultural Cooperatives and Farmers Association (MOSZ) protested again against the introduction of the reverse VAT. From the measure, the government expects revenue growth of tens of billions of forints. In the view of MOSZ, the introduction of reverse VAT will have the opposite effect: the measure further reduces the legal producers' position which will result in a decline in pig population and thus a decrease in budget revenue, due to VAT, income tax, etc. losses.

The VAT fraud are usually occur during the cross-border marketing of meat, not during the sales of domestically produced live pigs. VAT frauds are carried out typically through phantom trading companies, implemented by using fictitious invoices. However, the reverse VAT can not be implied on these transactions, because importing from the EU is VAT free. (by our colleague)