Magazine: New tax stamp rules

As of 1 January 2017 there will be great changes in the excise duty regulation. These changes are likely to affect – either directly or indirectly – practically all fields of economic life. Experts of EY Magyarország analysed the expected changes and their possible consequences. The company even organised a press event, where Zoltán Vargha and Attila Fülöp, customs and excise duty experts of EY’s tax department were answering questions.

For businesses the modifications will bring new administrative burden and extra costs. All communication related to products subject to an excise tax will be done electronically. What is more, paper will also disappear in making payments. Traders with an excise tax licence won’t be allowed to sell products to retailers with cash payment any more. This change will have the biggest effect on Cash&Carry type stores.

The tax warehouse system will also change: in the future one tax warehouse licence will be enough to manufacture, store and pack all kinds of products subject to excise duty. Mr Fülöp stressed that the system of framework licences will be abolished. In the excise duty regulation the qualification of taxpayers will play an important role: reliable and risky taxpayers will be subject to different treatment by the authorities.

A so-called dynamic warranty will be introduced, which means that guarantees offered in connection with excise tax will be adapted to the level of tax risk. Mr Vargha told that in inadequate warranty level may entail suspending the company’s activity. Tax stamps – the ones we know from the bottles of alcoholic drinks – will replace revenue seals, so in the future there will be tax stamps on packs of cigarette too. Packs closed with a revenue seal will be allowed to be sold until 31 March 2017.