NAV: Easter inspection campaign begins

You can expect inspectors in shops, markets, out-of-town locations, online, and on Easter Sunday and Monday at events as well – they added.

The NAV is investigating whether traders and service providers are invoicing their income or receipt, whether businesses register their employees, whether traders comply with the rules on the sale of excise goods. The auditors also examine the proper operation of online cash registers.

At Easter, the Tax Authority also pays special attention to examining the origin of goods: if the auditors find irregularities, the business may receive a fine of 40 percent of the value of the goods. In addition, this violation carries a mandatory minimum fine: at least 200 thousand forints for private individuals and sole proprietors, and at least half a million forints for companies – the Tax and Customs Administration drew attention.

For committing the three violations – failure to provide a receipt or report the employee and goods of unverified origin – the Tax and Customs Administration may close the business for up to 12 days. In the event of a repeated violation, the office has no discretion – closing the shop becomes a mandatory sanction – the Tax Authority warned.

Special rules apply to those who choose the preferential taxation method, so it is not worth taking any risks for the tax evaders and the tax evaders. They will lose the preferential taxation method if the Tax Authority imposes a default fine on them for committing the three most serious tax violations. The right to flat-rate taxation will also cease if the entrepreneur fails to provide a receipt, the tax authority warned in its statement.

NAV’s inspections not only serve to secure state revenues, the office also protects fairly operating businesses by taking action against those who try to gain a competitive advantage through tax avoidance, they explained.

NAV’s Tax Trafficking section predicts what types of inspections can be expected in the coming period, they added.