NAV: the procedure for clarifying the employment relationship will come into effect from July

By: Trademagazin Date: 2025. 06. 27. 10:24

The National Tax and Customs Administration (NAV) will expand its economic whitewashing toolkit from July 1st: the employment relationship clarification procedure will come into effect, which could be effective against employers who fraudulently evade tax payments and contribution returns from their employees, the authority told MTI on Sunday.

The new procedure protects employees and also simplifies administration, as instead of an audit, there is an opportunity to correct the error after a warning from the National Tax and Customs Administration, the statement said.

They added that anyone who fails to do so can expect a fine of 100,000 forints per employee.

The National Tax and Customs Administration emphasized that the goal is not to impose fines, but to resolve employment relationships in the interests of employees.

They recalled that NAV – as a service provider – has been regularly drawing the attention of affected employers to the identified discrepancies since November 2021, and this year alone it has sent more than 50,000 information letters regarding the December 2024-April 2025 reporting periods.

Although the change will enter into force on July 1, 2025, NAV is still giving time for voluntary compliance

– they drew attention to it.

As they wrote, it is worth every employer to check whether they have completed all their contribution returns and employment notifications, because the procedures during which the office will impose sanctions will start in the summer:

If the employer does not legally settle their employment relationship or does not complete their contribution return within 15 days of the notice, the NAV will impose a default fine of 100 thousand forints per employee.