Many small businesses could miss out on the individual exemption if they don’t act on time
The threshold for individual VAT exemption increased to HUF 18 million from January 1, but entrepreneurs must declare by February 28 if they want to take advantage of the opportunity. According to tax expert Gábor Csongár, many people do not know that previously issued VAT invoices must be modified, and it is worth reporting to the Tax Authority by February 28. The expert believes that in the coming years – calculated at a rate of HUF 400 per euro – the threshold could increase to HUF 34 million, as the individual tax exemption threshold allowed by the EU has become EUR 85 thousand, and member states could stretch to this point.
From January 1, 2025, the upper limit for individual tax exemption has increased from the previous HUF 12 million to HUF 18 million. Businesses whose net value of invoices issued last year and this year with a payment date does not exceed this amount will not be subject to sales tax (VAT) on their sales. This applies to both products and services. However, the option is not automatic, because businesses must declare if they want the new threshold regulation to apply to them. This can be done by submitting a declaration to NAV by February 28.
So far, approximately 830,000 businesses (sole proprietors, partnerships, etc.) have chosen the subject-based tax-free form. However, from this year, it is estimated that another 30,000 small businesses will be able to do so – these are those that invoiced more than 12 million net but less than 18 million last year, taking the payment date into account, and have planned a similar threshold for 2025.
Related news
K&H: Those who prepare for ESG in time can gain a competitive advantage
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >IPOSZ: there is no strong Hungarian economy without family micro and small businesses
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >Focus on rural SMEs – the “Rural Entrepreneur of the Year” award and the Rural Entrepreneurs’ Night are launched
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >Related news
MNB keeps base rate at 6.5% – growth outlook worsens
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >The acquisition of Eisberg’s Polish factory has also been completed.
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >Tesco’s turnover increased in the first half of the financial year, sales in the Central European business also improved
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >