On 1 January 2024, the Hungarian Tax Authority (HTA) introduced a new electronic VAT system, eVAT (eÁFA). It offers taxpayers various electronic services to streamline and automate the preparation of their VAT returns. The Ecovis experts explain the details.
eVAT provides a range of innovations to simplify compliance, reduce administrative burdens, and enhance accuracy in VAT reporting. Moreover, the introduction of machine-to-machine (M2M) functions, enabling direct electronic data integration from taxpayers’ ERP databases, signals the beginning of a new era in Hungarian VAT compliance.
What the new M2M functions mean for companies
The new M2M functions can manage a virtually unlimited number of invoices and allow the automated, direct submission of VAT analytics to the HTA. Once received, the data can be reviewed and the HTA will provide observations in the case of any discrepancy, without imposing penalties. According to the HTA, electronic VAT compliance will not only enhance the taxpayers’ reporting process but will also contribute to the HTA’s automated risk analysis.
Our experts will implement the M2M-based electronic VAT system for you so that you can meet the requirements. László Kelemen, Partner, ECOVIS Tax Solution Hungary, Budapest, Hungary
However, setting up the M2M link gives rise to complex tax advisory tasks and IT development which require in-depth expertise and comprehensive planning. As a result, VAT professionals have played a vital role in ensuring that taxpayers’ ERP systems are capable of handling and are compatible with the M2M framework data formats and that the schemas and VAT-codes follow the HTA’s definitions.
Although the new M2M mechanism is not mandatory, there is already significant interest among Hungarian taxpayers, as it will significantly simplify the current process. It is also expected to attract interest from other EU Member States as digital VAT compliance gains international prominence.
For further information please contact:
László Kelemen, Partner, ECOVIS Tax Solution Hungary, Budapest, Hungary Email: laszlo.kelemen@ecovis.hu
The new digital transaction levy in Greece: What businesses need to know
09.10.2024
From 1 December 2024, a new tax on digital transactions will apply in Greece. It replaces the traditional stamp duty. More than 600 types of transactions will now be exempt from stamp duty. The Ecovis experts explain the details of the new law and what businesses need to know.
Elimination of stamp duty
As of 30 November, the stamp duty burden will be abolished for many significant transactions, such as gratuitous loans, insurance transactions, capital increases for non-profit entities, statutory interest for loans, cash facilitations, and advances.
Introduction of the digital transaction levy
From 1 December, the new digital transaction levy will then replace the stamp duty on specific types of transactions. The levy will apply to real estate business leases, compensation for statutory interest and default interest (other than bank loans), and transactions between individuals who are not engaged in business activities.
In addition, the digital transaction levy will apply to payments made to individuals or members of a company’s administration, as well as to deposits or withdrawals from the funds of legal entities and organisations.
Key points of the law
Under the new law recently ratified by the Greek parliament, the digital transaction levy applies regardless of where the transaction is conducted, as long as at least one party has is tax resident or has a permanent establishment in Greece. The levy is restricted to the types of transactions specifically named in the law and does not apply to other indirect taxes.
We will answer your questions about the new digital transaction levy. Vassilis Panagakos, Chief Accountant, ECOVIS Hellas, Athens, Greece
The assessment and payment of the levy will be carried out digitally through a new digital platform created by the Independent Authority for Public Revenue (AADE). The declaration must be submitted by the end of the month following the transaction.
Exceptions
General exceptions include transactions where income tax withholding is required or where transactions are subject to VAT. Bond loans and home leases are also exempted from the new digital transaction levy, as they were from stamp duty.
Digital transaction levy rates
Levy rate
Transaction type
3.60%
Applied to real estate business leases, compensation for statutory and default interest, and contracts between individuals not engaged in business
2.40%
Applies when all parties are engaged in business activities, or at least one is a legal entity, e.g. an SA, LLC, or PC
1.20%
For payments to individuals or board members, as well as for deposits or withdrawals from the funds of legal entities
VAT on digital services in Peru: Implementation postponed to 1 December 2024
07.10.2024
Providers and sellers of digital services who are not based in Peru will not have to register and pay 18% VAT to the Peruvian tax authorities until 1 December 2024 – a delay of two months. The Ecovis consultants know the details.
What are the key regulatory updates?
The main aspects of the regulations include:
Extension for operating as withholding or collection agents: Non-resident providers currently providing services, or those beginning operations by 30 November 2024, will start collecting or withholding VAT from 1 December 2024 (instead of the originally scheduled date of 1 October 2024).
Accounting records, ledgers, and payment receipts: Non-resident digital service providers acting as VAT withholding or collection agents will not be required to maintain accounting records, ledgers, or other statutory books, nor will they be obliged to issue payment receipts.
Option to declare and pay in local currency or US dollars: As an exception, this option can be exercised for the first time in the declaration for December 2024.
We will help you to correctly declare VAT with the Peruvian tax authorities. Octavio Salazar Mesias, Partner, ECOVIS Peru, Lima, Peru
