ekaer-related abstracts from the legal regulations · b) legal compliance inspection that is...

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EKAER-related abstracts from the legal regulations

Act CL of 2017

on the rules of taxation (Art.)

Article 7 [Definitions]

For the purpose of this Act and – unless it is not required otherwise by this act – the legal

regulations pertaining to taxes and tax administration proceedings

14. EKAER shall mean the Electronic Public Road Transportation System operated by the

state tax and customs authority, intended to monitor compliance with tax obligations arising

in connection with the transportation of goods on public roads from any Member State of the

European Union to the territory of Hungary, or from the territory of Hungary to any Member

State of the European Union, or within the framework of internal trade inside the territory of

Hungary,

Former Art. Article 178. 50. Electronic Public Road

Transportation Control System (EKAER) shall

mean an electronic system operated by the state tax

and customs authority, intended to monitor

compliance with tax obligations arising in connection

with the transportation of goods on public roads from

any Member State of the European Union to the

territory of Hungary, or from the territory of

Hungary to any Member State of the European

Union, or within the framework of internal trade

inside the territory of Hungary,

Art. Article 7 [Definitions] 14. EKAER shall mean

the Electronic Public Road Transportation System

operated by the state tax and customs authority,

intended to monitor compliance with tax obligations

arising in connection with the transportation of

goods on public roads from any Member State of the

European Union to the territory of Hungary, or from

the territory of Hungary to any Member State of the

European Union, or within the framework of internal

trade inside the territory of Hungary,

15. EKAER number shall mean an identification number assigned following notification of

the public road transportation of a product by automated process in the Electronic Public

Road Transportation Control System (EKAER) intended to identify a unit of a given product, Former Art. Article 178. 42. EKAER number shall

mean an identification number assigned following

notification of the public road transportation of a

product by automated process in the Electronic

Public Road Transportation Control System

(EKAER) intended to identify a unit of a given

product,

Art. Article 7 [Definitions] 15. EKAER number shall mean an identification number assigned

following notification of the public road

transportation of a product by automated process in

the Electronic Public Road Transportation Control

System intended to identify a unit of a given product,

21. Motor vehicle shall mean a motor vehicle subject to toll charges and any means of

transport with less weight, covering trucks, lorries - including semi-trailers - and

combinations of vehicles comprised of trailers and semi-trailer; Former Art. Article 178. 49. Motor vehicle shall

mean a motor vehicle subject to toll charges and any

means of transport with less weight, covering trucks,

lorries - including semi-trailers - and combinations

of vehicles comprised of trailers and semi-trailer;

Art. Article 7 [Definitions] 21. Motor vehicle shall

mean a motor vehicle subject to toll charges and any

means of transport with less weight, covering trucks,

lorries - including semi-trailers - and combinations

of vehicles comprised of trailers and semi-trailer;

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23. Goods of unverified origin shall mean any merchandise and material for which the

taxpayer is unable, at the time of audit, to produce an authentic document of origin or an

instrument to substantiate such document; 178. § 13. Goods of unverified origin shall mean any

merchandise and material for which the taxpayer is

unable, at the time of audit, to produce an authentic

document of origin or an instrument to substantiate

such document;

Art. Article 7 [Definitions] 23. Goods of unverified

origin shall mean any merchandise and material for

which the taxpayer is unable, at the time of audit, to

produce an authentic document of origin or an

instrument to substantiate such document;

41. Perishable foodstuff shall mean products that have a shelf life and expiration date

specified in compliance with the Act on the food chain and its authority supervision;

Former Art. Article 178. 24. Perishable

foodstuff shall mean products that are easily

perishable and have an expiration date

specified in compliance with the decree

implementing the Act on foods and the Act

on animal health;

Art. Article 7 [Definitions] 41. Perishable

foodstuff shall mean products that have a

shelf life and expiration date specified in

compliance with the Act on the food chain

and its authority supervision;

50. Motor vehicle subject to toll charges shall mean a motor vehicle that is subject to toll

charges under the Act on the fees charged for the use of tolled motorways, main highways and

regular highways based on the distance traveled;

Article 178. 48. Motor vehicle subject to

toll charges shall mean a motor vehicle that

is subject to toll charges under the Act on

the fees charged for the use of tolled

motorways, main highways and regular

highways based on the distance traveled;

Art. Article 7 [Definitions] 50. Motor

vehicle subject to toll charges shall mean a

motor vehicle that is subject to toll charges

under the Act on the fees charged for the use

of tolled motorways, main highways and

regular highways based on the distance

traveled;

CHAPTER XI.

OBLIGATIONS RELATING TO THE ELECTRONIC PUBLIC ROAD TRANSPORTATION

CONTROL SYSTEM

Article 113 [Obligations relating to the Electronic Public Road Transportation Control

System]

(1) The carriage of goods on public roads with a motor vehicle subject to toll charges and

motor vehicles over the total weight of 3.5 tons within the framework of supply or acquisition

of goods, or movement of goods for other reasons provided for in the ministerial decree

adopted for the implementation of this Act may be performed exclusively by taxpayers

holding a valid EKAER number.

(2) Section (1) applies to products which are considered to involve risks under the

ministerial decree adopted for the implementation of this Act, in the cases specified in the

ministerial decree adopted for the implementation of this Act also if the goods are carried by

such means of transport that is not subject to toll charges.

(3) In the case provided for in Section (2), and also if the activity defined in Section (1)

means the carriage of goods which are considered to involve risks (hereinafter referred to as

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risky products) under the ministerial decree adopted for the implementation of this Act, the

taxpayer shall be required to provide a risk guarantee in the cases provided for in the

ministerial decree adopted for the implementation of this Act.

(4) The new obligor shall pay a risk guarantee – in the case of the intra-Community

purchasing of products defined in the ministerial decree adopted for the implementation of

this Act, as well as the first domestic product sales that is subject to the assessment of value-

added tax and not directly concluded towards final users – at the time of the first disclosure

and in relation to the disclosures made until the 180th day following the date of the first

disclosure, or also in relation to the first ten disclosures if within one hundred and eighty days

following the date of the first disclosure at least 10 disclosures have not been made.

(5) In the case of pursuing the activities provided for in Section (1) and (2), the particulars

of the consignee (name, tax identification number), the particulars of the consignor (name, tax

identification number) and other data specified by the ministerial decree adopted for the

implementation of this Act shall be disclosed in the manner specified in the ministerial decree

adopted for the implementation of this Act to the state tax and customs authority in order to

apply for an EKAER number.

(6) Upon receipt of the data disclosed by the taxpayer under Section (5) the state tax and

customs authority shall register the data thus disclosed and shall record them in the EKAER,

and shall issue an EKAER number to the taxpayer on that basis. Moreover, the state tax and

customs authority shall issue an EKAER number also for those taxpayers provided for in the

ministerial decree adopted for the implementation of this Act to whom Section (5) does not

apply, however, they disclose the data defined therein to the state tax and customs authority as

if they were covered by Section (5).

(7) The rules relating to the obligation defined in Section (1)–(3) and (5)–(6), including the

exemptions from such obligation, shall be laid down in the ministerial decree adopted for the

implementation of this Act.

(8) Taxpayers or their legal representative or proxy shall have access to EKAER electronic

platform through electronic identification service.

(9) The persons mentioned in Section (8) as acting in the taxpayer’s name shall be able to

make disclosures until such time as the taxpayer or his legal representative, proxy withdraws

their such entitlement through the EKAER electronic platform.

(10) With respect to the Commercial Customs Tariffs, products which are considered to

involve risks under the provisions of this Article and the ministerial decree adopted for the

implementation of this Act shall be governed by the provisions of the ministerial decree

adopted for the implementation of this Act.

(11) For the purpose of this Article, a new obligor shall mean any taxpayer who or that did

make any disclosure described in this Article in the year under review or during the preceding

two years, and

a) in the same period has not submitted any value-added tax return – including taxpayers

choosing to rely on value-added tax exempt status, and if the taxpayer submitted or could

have submitted a zero data declaration described in this Act instead of a tax return, or

b) was subject to the suspension of the tax number during the same period.

(12) During the application of Section (11), the disclosures of the legal successor made

pursuant to Section (1)–(2) and (5) shall also be taken into consideration.

Former Art. Article 22/E (1) The carriage of goods on

public roads with a motor vehicle subject to toll

charges and motor vehicles over the total weight of 3.5

tons within the framework of supply or acquisition of

goods, or movement of goods for other reasons

Art. Article 113 [Obligations relating to the

Electronic Public Road Transportation Control

System]

(1) The carriage of goods on public roads with a

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provided for in the ministerial decree adopted for the

implementation of this Act may be performed

exclusively by taxpayers holding a valid Electronic

Public Road Transportation Control System (hereinafter referred to as EKAER) number.

motor vehicle subject to toll charges and motor

vehicles over the total weight of 3.5 tons within the

framework of supply or acquisition of goods, or

movement of goods for other reasons provided for in

the ministerial decree adopted for the implementation

of this Act may be performed exclusively by taxpayers

holding a valid EKAER number.

Former Art. Article 22/E (2) Section (1) applies to

goods which are considered to involve risks under the

ministerial decree adopted for the implementation of

this Act, in the cases specified in the ministerial decree

adopted for the implementation of this Act also if the

goods are carried by such means of transport that is

not subject to toll charges.



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(2) Section (1) applies to goods which are considered

to involve risks under the ministerial decree adopted

for the implementation of this Act, in the cases

specified in the ministerial decree adopted for the

implementation of this Act also if the goods are carried

by such means of transport that is not subject to toll

charges.

Former Art. Article 22/E (3) In the case provided for

in Section (2), and also if the activity defined in

Section (1) means the carriage of goods which are

considered to involve risks under the ministerial

decree adopted for the implementation of this Act, the

taxpayer shall be required to provide a risk guarantee

in the cases provided for in the ministerial decree




System]

(3) In the case provided for in Section (2), and also if

the activity defined in Section (1) means the carriage

of goods which are considered to involve risks

(hereinafter referred to as risky products) under the


this Act, the taxpayer shall be required to provide a

risk guarantee in the cases provided for in the


this Act.

Former Art. Article 22/E (3a) Notwithstanding the

provisions of (3), the new obligor shall pay a risk

guarantee – in the case of the intra-Community

purchasing of products defined in the ministerial

decree adopted for the implementation of this Act, as

well as

the first domestic product sales that is subject to the

assessment of value-added tax and not directly

concluded towards final users – at the time of the first

disclosure and in relation to the disclosures made until

the 180th day following the date of the first disclosure,

or also in relation to the first ten disclosures if within

180 days following the date of the first disclosure at

least 10 disclosures have not been made.



System]

(4) The new obligor shall pay a risk guarantee – in the

case of the intra-Community purchasing of products

defined in the ministerial decree adopted for the

implementation of this Act, as well as the first domestic

product sales that is subject to the assessment of value-

added tax and not directly concluded towards final

users – at the time of the first disclosure and in

relation to the disclosures made until the 180th day

following the date of the first disclosure, or also in

relation to the first ten disclosures if within one

hundred and eighty days following the date of the first

disclosure at least 10 disclosures have not been made.

Former Art. Article 22/E (4) In the case of pursuing

the activities provided for in Section (1)-(2), the

particulars of the consignee (name, tax identification

number), the particulars of the consignor (name, tax

identification number) and other data specified by the


this Act shall be disclosed in the manner specified in


of this Act to the state tax and customs authority in



System]

(5) In the case of pursuing the activities provided for

in Section (1) and (2), the particulars of the consignee

(name, tax identification number), the particulars of

the consignor (name, tax identification number) and

other data specified by the ministerial decree adopted

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order to apply for an EKAER number.

for the implementation of this Act shall be disclosed in

the manner specified in the ministerial decree adopted

for the implementation of this Act to the state tax and

customs authority in order to apply for an EKAER

number.

Former Art. Article 22/E (5) Upon receipt of the data

disclosed by the taxpayer under Section (4) the state

tax and customs authority shall register the data thus

disclosed and shall record them in the EKAER, and

shall issue an EKAER number to the taxpayer on that

basis. Moreover, the state tax and customs authority

shall issue an EKAER number also for those taxpayers

provided for in the ministerial decree adopted for the

implementation of this Act to whom Section (4) does

not apply, however, they disclose the data defined

therein to the state tax and customs authority as if they

were covered by Section (4).



System]

(6) Upon receipt of the data disclosed by the taxpayer

under Section (5) the state tax and customs authority

shall register the data thus disclosed and shall record

them in the EKAER, and shall issue an EKAER

number to the taxpayer on that basis. Moreover, the

state tax and customs authority shall issue an EKAER

number also for those taxpayers provided for in the


this Act to whom Section (5) does not apply, however,

they disclose the data defined therein to the state tax

and customs authority as if they were covered by

Section (5).

Former Art. Article 22/E (6) The rules relating to

the obligation defined in Section (1)–(5), including the

exemptions from such obligation, shall be laid down in


of this Act.



System]

(7) The rules relating to the obligation defined in

Section (1)–(3) and (5)–(6), including the exemptions

from such obligation, shall be laid down in the


this Act.

Former Art. Article 22/E (7) Taxpayers or their legal

representative or proxy shall apply through the client

gate for a user name and password to access the

EKAER electronic platform. The disclosure referred

to in Section (4)-(5) shall be made by the taxpayer, or

by the person for whom the taxpayer or his legal

representative, proxy applied for a user name and

password through the EKAER electronic platform

enabling him to make disclosure.



System]

(8) Taxpayers or their legal representative or proxy

shall have access to EKAER electronic platform

through electronic identification service.

Former Art. Article 22/E (9) The persons mentioned

in Section (7) as acting in the taxpayer’s name shall be

able to make disclosures until such time as the

taxpayer or his legal representative, proxy withdraws

their such entitlement through the EKAER electronic

platform.



System]

(9) The persons mentioned in Section (8) as acting in

the taxpayer’s name shall be able to make disclosures

until such time as the taxpayer or his legal

representative, proxy withdraws their such entitlement

through the EKAER electronic platform.

Former Art. Article 22/E (10) With respect to the

Commercial Customs Tariffs (customs tariff number),

products which are considered to involve risks under

the provisions of this Article and the ministerial decree

adopted for the implementation of this Act shall be

governed by the provisions of the ministerial decree




System]

(10) With respect to the Commercial Customs Tariffs,

products which are considered to involve risks under

the provisions of this Article and the ministerial decree

adopted for the implementation of this Act shall be

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governed by the provisions of the ministerial decree


Former Art. Article 22/E (11) For the purpose of this

Article, a new obligor shall mean any taxpayer who or

that did make any disclosure described in this Article

in the year under review or during the preceding two

years, and

a) in the same period has not submitted any value-

added tax return – including taxpayers choosing to

rely on value-added tax exempt status, and if the

taxpayer submitted or could have submitted a

declaration described in Section (6) of Article 31

instead of a tax return, or

b) was subject to the suspension of the tax number

during the same period.



System]

(11) For the purpose of this Article, a new obligor

shall mean any taxpayer who or that did make any

disclosure described in this Article in the year under

review or during the preceding two years, and

a) in the same period has not submitted any value-added

tax return – including taxpayers choosing to rely on

value-added tax exempt status, and if the taxpayer

submitted or could have submitted a zero data

declaration described in this Act instead of a tax

return, or

b) was subject to the suspension of the tax number

during the same period.

Former Art. Article 22/E (12) During the application

of Section (11), the disclosures of the legal successor

made pursuant to Section (1)–(2) and (4) shall also be

taken into consideration.



System]

(12) During the application of Section (11), the

disclosures of the legal successor made pursuant to

Section (1)–(2) and (5) shall also be taken into

consideration.

Article 131 [Information disclosure by the tax authority]

(15) The state tax and customs authority shall disclose confidential tax information to the

investigating arm of the state tax and customs authority in the interest of the prevention of

criminal offences, and the investigation and detection of specific criminal offences, and for

the prosecution of criminal cases.

Former Art. Article 54 (8) The state tax and customs

authority shall disclose confidential tax information

to the investigating arm of NAV in the interest of the

prevention of criminal offences, and the investigation

and detection of specific criminal offences, and for

the prosecution of criminal cases.

Art. Article 131 [Information disclosure by the tax

authority]

(15) The state tax and customs authority shall

disclose confidential tax information to the

investigating arm of the state tax and customs

authority in the interest of the prevention of criminal

offences, and the investigation and detection of

specific criminal offences, and for the prosecution of

criminal cases.

Article 155 [Sanctions for reliable taxpayers]

(1) The upper limit of the default penalty that can be imposed by the state tax and customs

authority shall correspond to fifty percent of the upper limit of the default penalty that can be

imposed pursuant to the general rules provided that at the time of occurrence of the violation

of the relevant legal regulations or the exploration of the violation of the relevant legal

regulations (preparation of the report) the taxpayer is deemed as a reliable taxpayer.


authority shall correspond to fifty percent of the upper limit of the default penalty that can be

imposed pursuant to Section (3)–(4) of Article 215 provided that throughout the tax

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assessment period under tax inspection or on the date of the report describing the findings of

the tax inspection the taxpayer is deemed as a reliable taxpayer.

(3) The provisions of Section (1) and (2) shall not be applicable to defaults or cases of the

assessment of any tax difference that results in the loss of the reliable taxpayer qualification. Former Art. Article 6/C (2) The upper limit of the

default penalty that can be imposed by the state tax

and customs authority shall correspond to 50 percent

of the upper limit of the default penalty that can be

imposed pursuant to the general rules provided that at

the time of occurrence of the violation of the relevant

legal regulations or the exploration of the violation of

the relevant legal regulations (preparation of the

report) the taxpayer is deemed as a reliable taxpayer.

(3) The upper limit of the default penalty that can be

imposed by the state tax and customs authority shall

correspond to 50 percent of the upper limit of the

default penalty that can be imposed pursuant to the

general rules provided that throughout the tax

assessment period under follow-up tax inspection or

on the date of the report describing the findings of the

follow-up tax inspection the taxpayer is deemed as a

reliable taxpayer.

(4) The provisions of Section (2) and (3) shall not be

applicable to defaults or cases of the assessment of any

tax difference that results in the loss of the reliable

taxpayer qualification.

Art. Article 155 [Sanctions for reliable taxpayers]

(1) The upper limit of the default penalty that can

be imposed by the state tax and customs authority shall

correspond to fifty percent of the upper limit of the


general rules provided that at the time of occurrence

of the violation of the relevant legal regulations or the

exploration of the violation of the relevant legal

regulations (preparation of the report) the taxpayer is

deemed as a reliable taxpayer.



correspond to fifty percent of the upper limit of the

default penalty that can be imposed pursuant to

Section (3)–(4) of Article 215 provided that

throughout the tax assessment period under tax

inspection or on the date of the report describing the

findings of the tax inspection the taxpayer is deemed

as a reliable taxpayer.

(3) The provisions of Section (1) and (2) shall not

be applicable to defaults or cases of the assessment of

any tax difference that results in the loss of the reliable

taxpayer qualification.

Article 161 [Tax fines, default penalties for risky taxpayers]

(1) If at the time of occurrence of the violation of the relevant legal regulations or the

exploration of the violation of the relevant legal regulations, or on the date of the report

describing the findings of the follow-up tax inspection the taxpayer is deemed as a risky

taxpayer, the state tax and customs authority may not decide to neglect the imposition of a tax

fine and default penalty, and the minimum amount of the fine that can be imposed shall

correspond to thirty percent of the upper limit of the default penalty that can be imposed

pursuant to the general rules.


authority shall correspond to one hundred and fifty percent of the upper limit of the default

fine that can be imposed pursuant to the general rules provided that at the time of occurrence

of the violation of the relevant legal regulations or the exploration of the default (preparation

of the report) the taxpayer is deemed as a risky taxpayer. Article 6/I (1) If at the time of occurrence of the

violation of the relevant legal regulations or the

exploration of the violation of the relevant legal

regulations, or on the date of the report describing the

findings of the follow-up tax inspection the taxpayer is

deemed as a risky taxpayer, the state tax and customs

authority may not decide to neglect the imposition of a

tax fine and default penalty, and the minimum amount

of the fine that can be imposed shall correspond to 50

percent of the upper limit of the default penalty that

can be imposed pursuant to the general rules.

(2) The upper limit of the default penalty that can be

imposed by the state tax and customs authority shall

correspond to 150 percent of the upper limit of the

Art. Article 161 [Tax fines, default penalties for risky

taxpayers]

(1) If at the time of occurrence of the violation of

the relevant legal regulations or the exploration of the

violation of the relevant legal regulations, or on the

date of the report describing the findings of the follow-

up tax inspection the taxpayer is deemed as a risky

taxpayer, the state tax and customs authority may not

decide to neglect the imposition of a tax fine and

default penalty, and the minimum amount of the fine

that can be imposed shall correspond to thirty percent

of the upper limit of the default penalty that can be

imposed pursuant to the general rules.

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general rules provided that at the time of occurrence

of the violation of the relevant legal regulations or the

exploration of the default (preparation of the report)

the taxpayer is deemed as a risky taxpayer.



correspond to one hundred and fifty percent of the

upper limit of the default penalty that can be imposed

pursuant to the general rules provided that at the time

of occurrence of the violation of the relevant legal

regulations or the exploration of the default

(preparation of the report) the taxpayer is deemed as a

risky taxpayer.

CHAPTER XXX

DEFAULT PENALTY

Article 220 [General rules of fines]

(1) Unless it is otherwise required by the relevant legal regulations, the tax authority may

impose a default penalty in an amount of two hundred and fifty thousand Hungarian Forints

on natural person taxpayers and five hundred thousand Hungarian Forints on non-natural

person taxpayers in the event of any violation of the obligations stipulated in this Act, other

legislations prescribing tax-related obligations and other legal regulations based on the

authorizations granted in these legislations.

(2) The fulfillment of the obligation with the provision of incorrect, incomplete or unreal

information, as well as any delayed fulfillment or non-fulfillment of the obligation shall be

deemed to be the violation of the obligation.

(3) In the case of any delays, no default penalty may be imposed provided that in addition to

the fulfillment of the obligation the taxpayer justifies the delay by evidencing that he has

acted as it can be generally expected in the given situation.

Article 221 [Mandatory use of the notice for the rectification of deficiencies]

(1) With the exception of the registration obligation, the declaration of employees, the

notification of the acquisition of the title over motor vehicles, trailers, as well as EKAER

disclosure obligation, in the event of the

a) non-fulfillment of the tax assessment obligation, data disclosure obligation, registration

obligation in relation to the property acquisition duty, change notification obligation,

information service obligation, obligation to open a current account,

b) fulfillment of the tax assessment obligation, data disclosure obligation, registration

obligation in relation to the property acquisition duty, (change) notification obligation,

information service obligation by providing incorrect information, with the exception of

errors in tax assessment,

c) fulfillment of the registration, change notification and information service obligation by

providing unreal data,

the tax authority shall notify and call the taxpayer – in addition to the provision of warning

of the legal consequences of any further default – to comply with his tax-related obligations in

a legal manner, for which a time limit of fifteen days.

(2) In case the tax-related obligation described in Section (1) is not fulfilled within the time

limit or in a legal manner, the tax authority shall impose a default penalty in an amount of

fifty thousand Hungarian Forints on natural person taxpayers and one hundred thousand

Hungarian Forints on non-natural person taxpayers, and – in addition to the provision of

warning of the legal consequences of any further default – shall repeatedly set a time limit of

fifteen days for the legal fulfillment of the tax-related obligation. If the obligation is satisfied

9

within the time limit, the amount of the penalty imposed on the basis of this Section may be

reduced or discharged.

(3) In case the time limit defined in Section (2) elapses inefficiently, the tax authority shall

impose a default penalty in an amount of one hundred thousand Hungarian Forints on natural

person taxpayers and two hundred thousand Hungarian Forints on non-natural person

taxpayers, and – in addition to the provision of warning of the legal consequences of any

further default – shall set a time limit of fifteen days for the legal fulfillment of the tax-related

obligation. The amount penalty imposed on the basis of Section (2) and this Section may not

be reduced even of the obligation has been properly satisfied.

(4) The tax authority shall not send a notice and impose a default fine in case the taxpayer is

subject to liquidation, voluntary dissolution or forced dissolution proceedings, and therefore is

not in the position to fulfill the obligation.

Former Art. Article 6/C (1) In the event of any non-

fulfillment or incorrect fulfillment of the employee

declaration obligation, or – with the exception of the

obligation defined in Article 22/E of this Act – the

registration, tax assessment, information service

obligation, without imposing a default penalty, but by

setting a time limit the tax authority shall send a notice

and call the reliable taxpayer to fulfill its obligation or

correct the error. A default penalty may be imposed

only if the call has been provided inefficiently.

Remark: The favourable treatment of reliable taxpayer

has been replaced by the generally mandatory

application of notices for the rectification of

deficiencies.

Art. Article 221 [Mandatory use of the notice for the

rectification of deficiencies]

(1) With the exception of the registration

obligation, the declaration of employees, the

notification of the acquisition of the title over motor

vehicles, trailers, as well as EKAER disclosure

obligation, in the event of the

a) non-fulfillment of the tax assessment

obligation, data disclosure obligation, registration

obligation in relation to the property acquisition duty,

change notification obligation, information service

obligation, obligation to open a current account,

b) fulfillment of the tax assessment obligation,

data disclosure obligation, registration obligation in

relation to the property acquisition duty, (change)

notification obligation, information service

obligation by providing incorrect information, with

the exception of errors in tax assessment,

c) fulfillment of the registration, change

notification and information service obligation by

providing unreal data,

the tax authority shall notify and call the taxpayer –

in addition to the provision of warning of the legal

consequences of any further default – to comply with

his tax-related obligations in a legal manner, for

which a time limit of fifteen days.

(2) In case the tax-related obligation described

in Section (1) is not fulfilled within the time limit or

in a legal manner, the tax authority shall impose a

default penalty in an amount of fifty thousand

Hungarian Forints on natural person taxpayers and

one hundred thousand Hungarian Forints on non-

natural person taxpayers, and – in addition to the

provision of warning of the legal consequences of

any further default – shall repeatedly set a time limit

of fifteen days for the legal fulfillment of the tax-

related obligation. If the obligation is satisfied within

the time limit, the amount of the penalty imposed on

the basis of this Section may be reduced or

discharged.

(3) In case the time limit defined in Section (2)

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elapses inefficiently, the tax authority shall impose a

default penalty in an amount of one hundred

thousand Hungarian Forints on natural person

taxpayers and two hundred thousand Hungarian

Forints on non-natural person taxpayers, and – in

addition to the provision of warning of the legal

consequences of any further default – shall set a time

limit of fifteen days for the legal fulfillment of the

tax-related obligation. The amount penalty imposed

on the basis of Section (2) and this Section may not

be reduced even of the obligation has been properly

satisfied.

(4) The tax authority shall not send a notice and

impose a default fine in case the taxpayer is subject

to liquidation, voluntary dissolution or forced

dissolution proceedings, and therefore is not in the

position to fulfill the obligation.

Article 226 [Supply of goods of unverified origin and the irregular fulfillment of the EKAER

disclosure obligation]

(1) Where the taxpayer supplies goods of unverified origin, the tax authority may impose a

default penalty in the amount up to forty percent of the market value of the goods in question,

or up to two hundred thousand Hungarian Forints in the case of natural person taxpayers and

up to five hundred thousand Hungarian Forints for non-natural person taxpayers.

(2) If the taxpayer

a) failed to comply with the disclosure obligation with respect to the goods carried or a part

thereof, or

b) the information supplied under such notification requirement is incorrect, false or

incomplete,

the state tax and customs authority may impose a default penalty on the taxpayer up to forty

percent of the value of goods having remained undisclosed, or having been disclosed with

incorrect, false or incomplete information.

(3) If the state tax and customs authority finds during an inspection that the taxpayer

fulfilled its EKAER disclosure obligation with the supply of false information so that the

quantity of the undisclosed products exceeds the actually carried quantity of products, then it

may impose a default penalty on the taxpayer up to 40 percent of the value of disclosed goods

that were not in fact carried.

Former Art. Article 172 (19) Where the taxpayer

supplies goods of unverified origin, the tax authority

may impose a default penalty in the amount up to 40

percent of the market value of the goods in question,

or up to 200,000 Hungarian Forints in the case of

private individuals and up to 500,000 Hungarian

Forints for other taxpayers.

Art. Article 226 [Supply of goods of unverified

origin and the irregular fulfillment of the EKAER

disclosure obligation]

(1) Where the taxpayer supplies goods of

unverified origin, the tax authority may impose a

default penalty in the amount up to forty percent of

the market value of the goods in question, or up to

two hundred thousand Hungarian Forints in the case

of natural person taxpayers and up to five hundred

thousand Hungarian Forints for non-natural person

taxpayers.

Former Art. Article 172 (19a) If the state tax and

customs authority finds during an inspection that the

taxpayer failed to comply with the obligation

provided for in Section (1)-(2) and (4) of Article 22/E

with respect to the goods carried or a part thereof, or

if the information supplied under such notification

Art. Article 226 [Supply of goods of unverified


disclosure obligation] (2) If the taxpayer

a) failed to comply with the disclosure

obligation with respect to the goods carried or a part

thereof, or

11

requirement is incorrect, false or incomplete, the

goods carried or the undisclosed part thereof shall be

considered to be of unverified origin, and the state

tax and customs authority may impose a default

penalty on the taxpayer up to 40 percent of the value

of such goods of unverified origin.

b) the information supplied under such

notification requirement is incorrect, false or

incomplete,

the state tax and customs authority may impose a

default penalty on the taxpayer up to forty percent of

the value of goods having remained undisclosed, or

having been disclosed with incorrect, false or

incomplete information.

Former Art. Article 172 (19b) If the state tax and

customs authority finds during an inspection that the

taxpayer fulfilled its disclosure obligation set forth in

Section (1)–(2) and (4) of Article 22/E with the

supply of false information so that the quantity of the

undisclosed products exceeds the actually carried

quantity of products, then the state tax and customs

authority may impose a default penalty on the

taxpayer up to 40 percent of the value of disclosed

goods that were not in fact carried.

Article 226 [Supply of goods of unverified


disclosure obligation] (3) If the state tax and customs

authority finds during an inspection that the taxpayer

fulfilled its EKAER disclosure obligation with the

supply of false information so that the quantity of the

undisclosed products exceeds the actually carried

quantity of products, then it may impose a default

penalty on the taxpayer up to 40 percent of the value

of disclosed goods that were not in fact carried.

Article 228 [Violation of the rules pertaining to the obligation to issue invoices, cash

receipts, as well as retain documents]

(1) On taxpayers, the tax authority may impose a fine up the amount of one million

Hungarian Forints if

a) they fail to comply with their obligation to issue an invoice, simplified invoice or cash

receipt, or the invoice, simplified invoice or cash receipt is not issued for the actual amount of

consideration, or

b) they fail to comply with their obligation to retain documents.

(2) For the application of the relevant legal consequences, the taxpayer shall be deemed to

have failed to comply with its obligation to retain documents in case the taxpayer submits its

documents in conditions that are unsuitable for the execution of the inspection.

(3) If the taxpayer fails to meet its obligation to retain documents by not keeping pre-printed

invoices or cash receipts – as irrespective of the fact whether the invoice or cash receipt has

actually been used – the amount of the default penalty that can be imposed shall be up to an

amount corresponding to the product of two hundred thousand Hungarian Forints for natural

person taxpayers and 500,000 Hungarian Forints for non-natural person taxpayers and the

number of missing invoices or cash receipt.

Article 237 [Aspects to be deliberated in relation to the imposition of fines]

(1) In the event of the imposition of any default penalty, the tax authority shall take the

following aspects into account for the benefit or to the detriment of the taxpayer

a) the taxpayer’s general taxation practices, general willingness to act in compliance with

legal regulations,

b) weight, frequency, duration of the illegal behaviour (activities or infringements) of the

taxpayer, and

c) the fact whether the taxpayer, its acting representative, employee, member or agent acted

with the care that could be reasonably expected in the given situation.

(2) Based on the rational deliberation of the circumstances, the tax authority shall impose a

fine that is aligned with the weight of the default and the given infringement of taxation

interests, or may choose to neglect the imposition of the fine.

(3) Unless it is required otherwise by this Act, default penalties may be imposed repeatedly

or in increased amounts upon the failure to fulfill these obligations in a legal manner.

12

Article 238 [Time limit of the imposition of the default penalty]

If one year has elapsed following the date when the tax authority became aware of the

violation, no default penalty may be imposed. This requirement shall not be applicable to

violations revealed by tax inspections.

CHAPTER XXXI

MEASURES

Article 239 [Seizure upon the imposition of fine due to the absence of tax number]

The tax authority, upon imposing a penalty on a natural person or non-natural person who is

engaged in any entrepreneurial activity that requires a notification or registration by the court

of registry, or that is subject to taxation in the absence of a tax number, may seize the means

used for the activity performed without notification or in the absence of being registered by

the competent court of registry or, in respect of manufacturing operations, the result thereof or

the goods in stock, with the exception of perishable goods and live animals, up to the value of

the fine imposed as security and shall stipulate this action in the resolution for imposing the

penalty.

Article 240 [Seizure upon the irregular fulfillment of the disclosure obligation relating to

the carriage of products on public roads]

If the state tax and customs authority imposed a default penalty for non-compliance with the

EKAER disclosure obligation, or if the information supplied is incorrect, false or incomplete,

it may seize the goods carried - with the exception of perishable goods and live animals -

covering up to the amount of the penalty imposed, in security thereof, and shall so provide in

the resolution imposing the penalty.

Article 241 [Common rules pertaining to seizure]

(1) The state tax and customs authority shall draw up a report on the seizure, seal off the

property seized or remove it from the premises for safeguarding at the expense of the taxpayer

affected.

(2) The state tax and customs authority shall communicate the resolution it has adopted for

imposing a default penalty to the attending taxpayer, his representative or proxy, or employee,

whoever is available. The resolution shall be enforceable as of the date of communication

notwithstanding any appeal.

Article 243 [Retention of the vehicle]

(1) If the state tax and customs authority imposes any default penalty for the violation of the

obligation to keep the official seal, the vehicle of transport – with the exception of the

vehicles of transport carrying perishable goods and livestock – until the payment of the fine

imposed during the inspection conducted by the authority or the provision of guarantee for the

financial liabilities without the issuance of any specific resolution.

(2) The vehicle may not be retained in case

a) the registered seat, address or usual place of residence of the obligor(s) of the payment of

the fine are in the territory of Hungary, and the obligor is in possession of a tax number or tax

identifier having been issued by the state tax and customs authority, or

b) a financial institution assumes suretyship, guarantee for the fulfillment of the obligation

to pay the fine, or the obligation is taken over by any domestically registered economic entity

that has a tax number, and this fact is authentically evidenced by the obligor of the fine

payment during the proceedings.

13

(3) If a foreign transport operator impedes the removal of the official seal that has been

attached by the state tax and customs authority, with respect to the vehicle of transport owned

or used by the transport operator the state tax and customs authority may apply the actions

described in Section (1).

(4) For the purpose of this Article, the foreign transport operator shall be deemed as such a

person involved in the movement of products in the territory of Hungary that

a) is not settled and otherwise does not pursue economic (production, service, operating,

business) activities in Hungary as a legal person or other organization,

b) is a natural person driving the vehicle, but has no address or usual place of residence in

Hungary, and

c) is the natural person driver of the vehicle involved in the movement of products that are

owned by the legal person or other organization defined in Paragraph a).

Article 244 [Placement of the goods under authority supervision]

(1) The state tax and customs authority shall place those goods – with the exception of

perishable goods and livestock – under authority supervision that are found during the onsite

inspection, and in relation to which no authentic documents of confirmation are available with

respect to their origins, circumstances of procurement, the identity of owners or the

appropriateness of destination at the time of the inspection (hereinafter referred to as goods

placed under authority supervision).

(2) The placement of the goods under authority supervision shall be implemented by way of

the seizure of the goods, or their transport and storage in any warehouse maintained or

designated by the state tax and customs authority.

(3) In the event of the seizure of the goods, the state tax and customs authority shall place,

lock and seal the goods in storage facilities or separate premises that are suitable for keeping

the goods.

(4) The state tax and customs authority shall prepare a report in relation to the placement of

the goods described in Section (1) under authority supervision, with one counterpart of the

report to be handed over onsite to the person contributing to the execution of the inspection.

(5) The state tax and customs authority shall issue an authority decision on the placement of

any goods under authority supervision, and – if the goods placed under authority supervision

will not be kept in warehouses maintained by the state tax and customs authority – the

authority decision and the report serving as the basis thereof shall be communicated to the

person in charge of keeping the goods placed under authority supervision.

(6) Against the placement of the goods under authority supervision, the taxpayer or any

person whose right, legitimate interests are affected by such a measure may lodge a complaint

within eight days following the date of the measure, which shall be evaluated by the superior

body. Such a complaint shall have no dilatory effect on the execution of the measure.

(7) The person in charge of the keeping, storage of the goods placed under authority

supervision is required to provide for the keeping of the goods placed under authority

supervision – while ensuring the quality and quantity thereof prevailing at the time of delivery

– until the state tax and customs authority decides on the potential release, selling or

destruction of the goods placed under authority supervision.

(8) If the person in charge of the keeping, storage of the goods placed under authority

supervision violates the requirements of Section (7), he shall be liable for all the damage that

would not have occurred without such violation.

(9) The state tax and customs authority shall communicate the authority decision on the

placement of goods under authority supervision by means of an official notice within 3

business days following the issuance thereof.

14

(10) If within fifteen days following the communication of the authority decision as

required in Section (9) the person who has the right of disposal over the goods placed under

authority supervision confirms its title beyond doubt, the state tax and customs authority shall

release the goods to the given person upon the payment of the costs incurred with their

placement under authority supervision, in particular the costs of transportation, loading and

warehousing, as well as the amount of the fine provided that the state tax and customs

authority has imposed a fine with respect to the violation serving as the basis of its measures.

(11) If within fifteen days following the communication of the authority decision as

required in Section (9) the person who has the right of disposal over the goods placed under

authority supervision fails to confirm its title beyond doubt, the state tax and customs

authority shall sell the goods in line with the relevant rules of execution.

(12) If the person who has the right of disposal over the goods placed under authority

supervision confirm its title beyond doubt over the time limit specified in Section (10), and

the state tax and customs authority has already sold the goods, then the remaining amount of

the proceeds from the purchase price, following the deduction of the amounts defined in

Section (10), shall be due to the person who has the right of disposal over the goods. If the

eligible person fails to take over the proceeds from sales within five years following the

communication of the associated information by the state tax and customs authority, the

proceeds from the sales shall devolve to the state. The state tax and customs authority shall

not be liable to pay interests on the proceeds from the sales.

Former Art. Article 173 (1) The tax authority, upon

imposing a penalty on a private individual or other

taxpayer who is engaged in any entrepreneurial

activity that requires a notification or registration by

the court of registry, or that is subject to taxation in

the absence of a tax number, may seize the means

used for the activity performed without notification

or in the absence of being registered by the

competent court of registry or, in respect of

manufacturing operations, the result thereof or the

goods in stock, with the exception of perishable

goods and live animals, up to the value of the fine

imposed as security and shall stipulate this action in

the resolution for imposing the penalty..

The tax authority shall carry out the seizure in the

presence of two official witnesses and shall draft a

report on the procedure, seal off the property seized

or remove it from the premises for safeguarding at

the expense of the taxpayer affected. If the state tax

and customs authority imposed a default penalty for

non-compliance with the obligation provided for in

Section (1)–(2) and (4) of Article 22/E, or if the

information supplied is incorrect, false or

incomplete, it may seize the goods carried - with the

exception of perishable goods and live animals -

covering up to the amount of the penalty imposed, in

security thereof, and shall so provide in the

resolution imposing the penalty. The state tax and

customs authority shall draw up a report on the

seizure, seal off the property seized or remove it from

the premises for safeguarding at the expense of the

taxpayer affected. The state tax and customs

authority shall communicate the resolution it has

adopted for imposing a default penalty for non-

Art. Article 239 [Seizure upon the imposition of

fine due to the absence of tax number]

The tax authority, upon imposing a penalty on a

natural person or non-natural person who is

engaged in any entrepreneurial activity that requires

a notification or registration by the court of registry,

or that is subject to taxation in the absence of a tax

number, may seize the means used for the activity

performed without notification or in the absence of

being registered by the competent court of registry

or, in respect of manufacturing operations, the result

thereof or the goods in stock, with the exception of

perishable goods and live animals, up to the value of

the fine imposed as security and shall stipulate this

action in the resolution for imposing the penalty..

Art. Article 241 [Common rules pertaining to

seizure]


draw up a report on the seizure, seal off the property

seized or remove it from the premises for

safeguarding at the expense of the taxpayer affected.


communicate the resolution it has adopted for

imposing a default penalty to the attending taxpayer,

his representative or proxy, or employee, whoever is

available. The resolution shall be enforceable as of

the date of communication notwithstanding any

appeal.

Art. Article 240 [Seizure upon the irregular

fulfillment of the disclosure obligation relating to

the carriage of products on public roads]

If the state tax and customs authority imposed a

default penalty for non-compliance with the EKAER

15

compliance with the obligation provided for in

Section (1)–(2) and (4) of Article 22/E, or if the

information supplied is incorrect, false or

incomplete, to the taxpayer, his representative or

proxy, or employee, whoever is available, and such

resolution shall be enforceable as of the date of

communication notwithstanding any appeal.

disclosure obligation, or if the information supplied

is incorrect, false or incomplete, it may seize the

goods carried - with the exception of perishable

goods and live animals - covering up to the amount

of the penalty imposed, in security thereof, and shall

so provide in the resolution imposing the penalty.

Former Art. Article 173 (2) The tax authority shall

sell the movable properties seized as security in

accordance with the provisions on judicial

enforcement in the event of the taxpayer’s failure to

pay the fine within 15 days of the due date.

Article 242 [Sale of the seized movable

properties]

(1) The tax authority shall sell the movable

properties seized as security in accordance with the

provisions on judicial enforcement in the event of the

taxpayer’s failure to pay the default penalty within

fifteen days following the communication of the

resolution.

(2) The tax authority shall return the part of

the proceeds from the sale of such goods over and

above the fine, surcharge and costs to the taxpayer

concerned.

Former Art. Article 173 (3) The tax authority shall

return the part of the proceeds from the sale of such

goods over and above the fine, surcharge and costs

to the taxpayer concerned.

Art. Article 242 [Sale of the seized movable

properties] (2) The tax authority shall return the part of the

proceeds from the sale of such goods over and above

the fine, surcharge and costs to the taxpayer

concerned.

Former Art. Article 173/A (1) If the state tax and

customs authority imposes any default penalty based

on Section (20h) of Article 172, the vehicle of

transport – with the exception of the vehicles of

transport carrying perishable goods and livestock –

until the payment of the fine imposed during the

inspection conducted by the authority or the

provision of guarantee for the financial liabilities

without the issuance of any specific resolution.

Art. Article 243 [Retention of the vehicle]

(1) If the state tax and customs authority

imposes any default penalty for the violation of the

obligation to keep the official seal, the vehicle of

transport – with the exception of the vehicles of

transport carrying perishable goods and livestock –

until the payment of the fine imposed during the

inspection conducted by the authority or the

provision of guarantee for the financial liabilities

without the issuance of any specific resolution.

Former Art. Article 173/A (2) The vehicle may not

be retained in case

a) the registered seat, address or usual place of

residence of the obligor(s) of the payment of the fine

are in the territory of Hungary, and the obligor is in

possession of a tax number or tax identifier having

been issued by the state tax and customs authority, or

b) a financial institution assumes suretyship,

guarantee for the fulfillment of the obligation to pay

the fine, or the obligation is taken over by any

domestically registered economic entity that has a

tax number, and this fact is authentically evidenced

by the obligor of the fine payment during the

proceedings.

Art. Article 243 [Retention of the vehicle]

(2) The vehicle may not be retained in case

a) the registered seat, address or usual place of

residence of the obligor(s) of the payment of the fine

are in the territory of Hungary, and the obligor is in

possession of a tax number or tax identifier having

been issued by the state tax and customs authority, or

b) a financial institution assumes suretyship,

guarantee for the fulfillment of the obligation to pay

the fine, or the obligation is taken over by any

domestically registered economic entity that has a

tax number, and this fact is authentically evidenced

by the obligor of the fine payment during the

proceedings.

Former Art. Article 173/A (3) (3) If a foreign

transport operator violates the requirements of

Section (6b) of Article 88, and impedes the removal

of the official seal that has been attached by the state

tax and customs authority, with respect to any vehicle

of transport owned or used by the transport operator

the state tax and customs authority may apply the

actions described in Section (20h) of Article 172 and

Section (1) herein.

Art. Article 243 [Retention of the vehicle] (3) If a foreign transport operator impedes the

removal of the official seal that has been attached by

the state tax and customs authority, with respect to

the vehicle of transport owned or used by the

transport operator the state tax and customs

authority may apply the actions described in Section

(1).

Former Art. Article 173/A (4) For the purpose of this

Article and Section (20h) of Article 172, the foreign Art. Article 243 [Retention of the vehicle] (4) For the purpose of this Article, the foreign

16

transport operator shall be deemed as such a person

involved in the movement of products in the territory

of Hungary that

a) is not settled and otherwise does not pursue

economic (production, service, operating, business)

activities in Hungary as a legal person or other

organization,

b) is a private individual driving the vehicle, but has

no address or usual place of residence in Hungary,

and

c) is the private individual driver of the vehicle

involved in the movement of products that are owned

by the legal person or other organization defined in

Paragraph a).

transport operator shall be deemed as such a person

involved in the movement of products in the territory

of Hungary that

a) is not settled and otherwise does not pursue

economic (production, service, operating, business)

activities in Hungary as a legal person or other

organization,

b) is a natural person driving the vehicle, but

has no address or usual place of residence in

Hungary, and

c) is the natural person driver of the vehicle

involved in the movement of products that are owned

by the legal person or other organization defined in

Paragraph a).

Former Art. Article 173/B (1) The state tax and

customs authority shall place those goods – with the

exception of perishable goods and livestock – under

authority supervision

a) that are found during inspection of the

fulfillment of the disclosure obligation relating to

the road transport of products under Section (1)–(2)

and (4) of Article 22/A, or b) the are found during any other onsite inspection

and in relation to which no authentic documents of

confirmation are available with respect to their

origins, circumstances of procurement, the identity of

owners or the appropriateness of destination at the

time of the inspection (hereinafter referred to as

goods placed under authority supervision).

Art. Article 244 [Placement of the goods under

authority supervision]

(1) The state tax and customs authority shall place

those goods – with the exception of perishable goods

and livestock – under authority supervision that are

found during the onsite inspection, and in relation to

which no authentic documents of confirmation are

available with respect to their origins, circumstances

of procurement, the identity of owners or the

appropriateness of destination at the time of the

inspection (hereinafter referred to as goods placed

under authority supervision).

Former Art. Article 173/B (2) The placement of the

goods under authority supervision shall be

implemented by way of the seizure of the goods, or

their transport and storage in any warehouse

maintained or designated by the state tax and

customs authority.



(2) The placement of the goods under authority

supervision shall be implemented by way of the

seizure of the goods, or their transport and storage in

any warehouse maintained or designated by the state

tax and customs authority.

Former Art. Article 173/B (3) In the event of the

seizure of the goods, the state tax and customs

authority shall place, lock and seal the goods in

storage facilities or separate premises that are

suitable for keeping the goods.



(3) In the event of the seizure of the goods, the state

tax and customs authority shall place, lock and seal

the goods in storage facilities or separate premises

that are suitable for keeping the goods.


customs authority shall prepare a report in relation

to the placement of the goods described in Section (1)

under authority supervision, with one counterpart of

the report to be handed over onsite to the person

contributing to the execution of the inspection.


authority supervision] (5) The state tax and customs authority shall issue an

authority decision on the placement of any goods

under authority supervision, and – if the goods

placed under authority supervision will not be kept

in warehouses maintained by the state tax and

customs authority – the authority decision and the

report serving as the basis thereof shall be

communicated to the person in charge of keeping

the goods placed under authority supervision.

Former Art. Article 173/B (6) Against the placement

of the goods under authority supervision, the

taxpayer or any person whose right, legitimate

interests are affected by such a measure may lodge a

complaint within 8 days following the date of the

measure, which shall be evaluated by the superior


authority supervision] (6) Against the placement of

the goods under authority supervision, the taxpayer

or any person whose right, legitimate interests are

affected by such a measure may lodge a complaint

within eight days following the date of the measure,

17

body. Such a complaint shall have no dilatory effect

on the execution of the measure.

which shall be evaluated by the superior body. Such

a complaint shall have no dilatory effect on the

execution of the measure.

Former Art. Article 173/B (7) If any proceedings

belonging to the scope of the competence of any

other authority become necessary, then the state tax

and customs authority shall notify the partner

authority with the concurrent sending of the data

required for the action of the partner authority.

Former Art. Article 173/B (8) The person in charge

of the keeping, storage of the goods placed under

authority supervision is required to provide for the

keeping of the goods placed under authority

supervision – while ensuring the quality and quantity

thereof prevailing at the time of delivery – until the

state tax and customs authority decides on the

potential release, selling or destruction of the goods

placed under authority supervision.


authority supervision] (7) The person in charge of the keeping, storage of

the goods placed under authority supervision is

required to provide for the keeping of the goods

placed under authority supervision – while ensuring

the quality and quantity thereof prevailing at the time

of delivery – until the state tax and customs authority

decides on the potential release, selling or

destruction of the goods placed under authority

supervision.

Former Art. Article 173/B (9) If the person in charge

of the keeping, storage of the goods placed under

authority supervision violates the requirements of

Section (8), he shall be liable for all the damage that

would not have occurred without such violation.


authority supervision] (8) If the person in charge of the keeping, storage of

the goods placed under authority supervision violates

the requirements of Section (7), he shall be liable for

all the damage that would not have occurred without

such violation.


customs authority shall communicate the authority

decision on the placement of goods under authority

supervision by means of an official notice within 3

business days following the date thereof. The official

notice shall be publicly disclosed at the Internet site

of the state tax and customs authority for a period

of 15 days. The official notice shall specify the date

of the public disclosure at the website, the name of

the acting body, the case number, the type of the

goods placed under authority supervision, their

quantities, the place and date of placement under

authority supervision, as well as a warning that

whoever authentically confirms right of disposal

over the goods placed under authority supervision

may take over the goods placed under authority

supervision within 15 days following the

communication, otherwise the goods shall be sold

by the state tax and customs authority in line with

the relevant rules of execution. The information

that is provided in the official notice described in

this Section shall be deemed to have been

communicated on the fifteenth day following public

disclosure at the website.




communicate the authority decision on the placement

of goods under authority supervision by means of an

official notice within 3 business days following the

issuance thereof.

.

(11) If within 15 days following the communication

the person who has the right of disposal over the

goods placed under authority supervision confirms

its title beyond doubt, the state tax and customs

authority shall release the goods to the given person

upon the payment of the costs

a) incurred with their placement under authority

supervision, in particular the costs of transportation,


authority supervision] (10) If within fifteen days

following the communication of the authority

decision as required in Section (9) the person who

has the right of disposal over the goods placed under

authority supervision confirms its title beyond doubt,

the state tax and customs authority shall release the

goods to the given person upon the payment of the

18

loading and warehousing, as well as the amount of

the fine provided that the state tax and customs

authority has imposed a fine within the meaning of

Section (19a) of Article 172, in case the authority

supervision has been ordered pursuant to Paragraph

a) of Section (1), or

b) mentioned in Paragraph a) of this Section in case

the authority supervision has been ordered pursuant

to Paragraph b) of Section (1).

.

costs incurred with their placement under authority

supervision, in particular the costs of transportation,

loading and warehousing, as well as the amount of

the fine provided that the state tax and customs

authority has imposed a fine with respect to the

violation serving as the basis of its measures.

(11) If within fifteen days following the

communication of the authority decision as

required in Section (9) the person who has the right

of disposal over the goods placed under authority

supervision fails to confirm its title beyond doubt,

the state tax and customs authority shall sell the

goods in line with the relevant rules of execution.

(12) If the person who has the right of disposal over

the goods placed under authority supervision confirm

its title beyond doubt over the time limit specified in

Section (11), and the state tax and customs authority

has already sold the goods, then the remaining

amount of the proceeds from the purchase price,

following the deduction of the amounts defined in

Section (11), shall be due to the person who has the

right of disposal over the goods.


authority supervision] (12) If the person who has the

right of disposal over the goods placed under

authority supervision confirm its title beyond doubt

over the time limit specified in Section (10), and the

state tax and customs authority has already sold the

goods, then the remaining amount of the proceeds

from the purchase price, following the deduction of

the amounts defined in Section (10), shall be due to

the person who has the right of disposal over the

goods. If the eligible person fails to take over the

proceeds from sales within five years following the

communication of the associated information by the

state tax and customs authority, the proceeds from

the sales shall devolve to the state. The state tax and

customs authority shall not be liable to pay interests

on the proceeds from the sales.

Article 269 [Authorizations granted to the minister in charge of taxation]

(10) The minister in charge of taxation is hereby authorized to decree the rules relating to

supplies and acquisitions of goods falling within the scope of EKAER, and movement of

goods for other reasons, the rules relating to the functioning of EKAER, the cases of

exemptions from EKAER and the rules governing risk guarantees, in particular the procedure

for issuing EKAER numbers, the type of data to be disclosed - excluding personal data -, the

parties subject to disclosure obligation and the rules for ad hoc exemption from the obligation

of disclosure, furthermore, the rules relating to disclosures and updating notified changes


(11) The minister in charge of taxation is hereby authorized to decree, in agreement with the

minister in charge of supervising the food supply chain, the products considered to be of high

risk as regards the functioning of EKAER. Former Art. Article 175 (32) The minister in charge

of taxation is hereby authorized to decree the rules

relating to supplies and acquisitions of goods falling

within the scope of EKAER, and movement of goods

for other reasons, the rules relating to the

functioning of EKAER, the cases of exemptions from

EKAER and the rules governing risk guarantees, in

particular the procedure for issuing EKAER

numbers, the type of data to be disclosed - excluding

personal data -, the parties subject to disclosure

obligation and the rules for ad hoc exemption from

the obligation of disclosure, furthermore, the rules

Art. 269. § [Authorizations granted to the

minister in charge of taxation] (10) The minister in charge of taxation is hereby

authorized to decree the rules relating to supplies

and acquisitions of goods falling within the scope of

EKAER, and movement of goods for other reasons,

the rules relating to the functioning of EKAER, the

cases of exemptions from EKAER and the rules

governing risk guarantees, in particular the

procedure for issuing EKAER numbers, the type of

data to be disclosed - excluding personal data -, the

parties subject to disclosure obligation and the rules

19

relating to disclosures and updating notified changes


for ad hoc exemption from the obligation of

disclosure, furthermore, the rules relating to

disclosures and updating notified changes through

the EKAER electronic platform.

Former Art. Article 175 (33) The minister in charge

of taxation is hereby authorized to decree, in

agreement with the minister in charge of supervising

the food supply chain, the products considered to be

of high risk as regards the functioning of EKAER.

Art. 269. § [Authorizations granted to the

minister in charge of taxation] (11) The minister in charge of taxation is hereby

authorized to decree, in agreement with the minister

in charge of supervising the food supply chain, the

products considered to be of high risk as regards the

functioning of EKAER.

20

Act CLI of 2017 on the order of tax administration procedures

Abstracts from the standard text in effect from 1 January 2018

in relation to EKAER

Article 82 [Measure for the provision of security]

(1) If it is probable that the later payment of the liabilities is at risk, as a security measure

the tax authority shall order the provision of security.

(2) The security measure may be ordered if

a) the decision of the tax authority establishing the payment obligation is still not

enforceable,

b) the decision of the tax authority is enforceable, but the deadline of payment defined there

still has not elapsed.

(3) The security measure shall be ordered by the tax authority that has made the decision on

the payment obligation.

(4) The execution of the decision ordering the security measure shall be subject to the rules

governing execution procedures.

(5) Against the decision ordering the security measure, an appeal may be filed without any

dilatory effect on the execution of the decision.

(6) If the decision serving as the basis of the execution procedure has been annulled, the

security measure shall be terminated.

(7) The effect of any seizure carried out during the execution of the decision ordering the

security measure shall also extend to the execution procedure.

Article 83 [Temporary measure for the provision of security]

(1) If it can be assumed in a well-grounded manner that the later payment of liabilities that

can be ordered in effective decisions is at risk, before making an effective decision on the

given case the tax authority shall take the measures described in Article 82 – as temporary

security measures – within five days following the occurrence of the associated

circumstances.

(2) The execution of such temporary security measures shall be subject to the rules

pertaining to security measures.

Article 89 [Types of inspections]

(1) The tax authority shall accomplish the goal of the inspection by means of a

a) tax inspection that results in a period closed with the inspection, and is targeted at the

examination of the bases and amounts of taxes, budgetary aids,

b) legal compliance inspection that is related to the fulfillment of other tax-related

obligations, and does not result in any period closed with the inspection.

.

(2) If the conditions defined in this Act are satisfied, inspections may as well be conducted

in relation to periods that have already been closed with inspections (repeated inspection).

Article 90 [Tax inspection]

(1) In the framework of the tax inspection, the tax authority shall review the performance of

tax assessment and tax reporting activities of the taxpayer separately for the individual taxes,

aids, as well as periods, or for any specific period with respect to several taxes and aids.

(2) The tax authority may as well review budgetary aids, tax refunds and tax

reimbursements requested by the taxpayer still before the remittance of these amounts, upon

the closing of the tax assessment period closed with the inspection.

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(3) If in the course of the inspection prior to remittance tax authority finds that the taxpayer

is eligible for the budgetary aids, tax refunds and tax reimbursements requested by the

taxpayer in part, based on the report relating to the partial amounts concerned the tax

authority may decide on the remittance of partial amounts while the inspection is continued in

relation to the remaining amounts. No observations may be made in relation to the reports

concerning partial amounts, but the taxpayer may put forward its observations following the

receipt of the report detailing the findings of the inspection of the total amount that has been

requested prior to remittance.

Article 91 [Legal compliance inspection]

(1) In the framework of legal compliance inspections, even before the closing of any tax

assessment period the tax authority may

a) review whether the taxpayer has complied with his certain tax-related obligations

prescribed in the relevant legal regulations, and if the taxpayer fulfills such obligations in a

timely manner, as suitable for the assessment, reporting and payment of taxes;

b) collect data in order to ascertain the authenticity and realistic nature of data, facts,

circumstances that are presented in its own records and the taxpayer’s records and tax returns;

c) examine the realistic nature of the economic events;

d) collect data to support its own inspection activities, and in particular to create, maintain

its estimation database.

(2) Based on the data and evidence revealed by the investigating arm of the state tax and

customs authority, in the framework of the legal compliance inspection the tax authority may

as well examine the realistic nature of the economic events in order to establish the value of

any committed crime.

Article 113 [Application of official seals]

(1) if it is justified by risk factors – with the exception of vehicles of transport carrying

livestock and quickly perishable products –, the state tax and customs authority may attach an

official seal to the vehicle of transport in order to ensure the sameness of products. The state

tax and customs authority may inspect the integrity of the applied official seal in Hungary, or

if the reason for the application of the official seal is not existent any longer, the authority

shall act for the removal thereof.

(2) The transport operator is obliged to preserve the official seal that has been attached by

the state tax and customs authority in undamaged conditions from the attachment of the

official seal until the removal thereof by the state tax and customs authority.

(3) If during the activities involving public road transport the official seal becomes damage

in any accident or for an unavoidable reason beyond the scope of the operator’s activities, or

the goods becomes damaged or destroyed, the transport operator is obliged to notify the state

tax and customs authority promptly.

(4) Against the application of the official seal, the taxpayer or any person whose right,

legitimate interests are affected by such a measure may lodge a complaint within eight days

following the date of the measure, which shall be evaluated by the superior body. Such a

complaint shall have no dilatory effect on the execution of the measure.

Article 114 [Consequences of the violation of the requirement to preserve official seals]

(1) If the transport operator fails to comply with his obligation to preserve the official seal,

the state tax and customs authority may impose a default penalty in an amount ranging from

two hundred thousand Hungarian Forints to five hundred thousand Hungarian Forints on

natural person transport operators, and from five hundred thousand Hungarian Forints to one

million Hungarian Forints on transport operators that are not natural persons.

(2) In relation to the imposition of the default penalty, the tax authority shall consider all the

circumstances of the given case, the weight and frequency of the illegal conduct (activities or

22

omissions) of the transport operator, as well as the fact whether he acted with the reasonably

expectable care in the given situation. Based on the deliberation of the circumstances, the tax

authority shall impose a fine that is aligned with the weight of the default.

23

Government Decree 465/2017 (Dec 28) on the detailed rules of tax

administration procedures

Abstracts from the standard text in effect from 1 January 2018

in relation to EKAER

34. Rights and obligations of the tax authority in inspection procedures

Article 79 (1) Before the commencement of the inspection, without any specific request, the

tax inspector is obliged to confirm his personal identity and authorization to conduct the

inspection, and inform the taxpayer in relation to the type, subject-matter and foreseeable

duration of the inspection.

(2) During the inspection, the tax authority shall exercise its rights so that the economic

activities of the taxpayer should be limited to the smallest possible extent.

(3) If towards the clarification of facts or circumstances required for the establishment of the

tax-related obligations the tax authority contacts any foreign tax authority based on an

international agreement or reciprocity, or the relevant rules of cooperation in tax

administration matters within the European Union, the taxpayer shall be notified of such

inquiries made towards the foreign tax authority and the receipt of the response of the foreign

tax authority. During the time of the inquiry made towards the foreign tax authority, the tax

authority may continue the inspection. The inspection may be concluded even in the absence

of a response provided that otherwise the factual circumstances have been clarified.

(4) During the inspection, the tax authority is required to evaluate the facts, circumstances,

data, and inform the taxpayer, his representative, proxy, employee in relation to the findings

of the inspection. The tax authority shall justify the refusal of any evidence offered by the

taxpayer verbally in advance, and then writing in the report prepared in relation to the

inspection.

(5) Means of evidencing and items of evidence shall particularly include: document, expert

opinion, declaration of the taxpayer, his representative, employee or another taxpayer, witness

statement, onsite survey, trial shopping, unrevealed trial shopping, trial manufacturing, site

visit, data from other taxpayers, findings of the connected inspections ordered, contents of

data disclosures, electronic data, information that originate from or are publicly accessible in

other authority records.

Article 80 During the inspection, the tax authority may

a) enter business, production premises, or any other premises, locations as required for the

inspection of taxable activities, assets or incomes,

b) inspect vehicles, vehicle cargoes, premises, sites associated with the entrepreneurial

activities,

c) examine documents, accounting documents, books, records, calculations and other facts,

data, circumstances, objects, work processes, as well as the software, IT equipment used for

the keeping of books, records, the processing of accounting documents, as well as

electronically stored, handled, forwarded data as irrespective of the nature of the IT

infrastructure displaying such data,

d) request information from the taxpayer, his representative, employees, as well a

declarations from other persons,

e) clarify the personal identities of persons involved in taxable activities, as well as the legal

title of their participation,

f) order trial manufacturing,

24

g) conduct connected inspections at other taxpayers in contracted relations with the

taxpayer, and

h) conduct evidencing procedures required for the clarification of the factual circumstances.

36. Inspection of the transported products

Article 82 (1) Products in commercial quantities owned by any taxpayer of the value-added

tax may be transported solely in possession of documents authentically confirming the origins

of the products, such as in particular waybills and invoices. The state tax and customs

authority may require the person performing the transportation of products in commercial

quantities to make a declaration as to the benefit of which taxpayer of value-added tax he

performs transportation activities, and additionally the authority may verify the origins of the

products and the availability of documents authentically confirming the ownership of the

taxpayer of value-added tax.

(2) Based on the declaration of the person performing the transportation of products as

defined in Section (1), the state tax and customs authority may require the addressee,

consignee, consignor and transport operator to make declarations on

a) the descriptions, quantities of the transported products,

b) the description, license plate number of the transportation vehicle,

c) the takeover of the products, address of unloading,

d) the EKAER number, and

e) the legal title of the use of the real-estate property in case the address of unloading is not

identical to the registered seat, business site, branch site of the taxpayer of value-added tax.

(3) The official seal used by the state tax and customs authority pursuant to Article 113 of

Air. shall be package lock or loading space lock affixed with an official seal.

(4) The state tax and customs authority may inspect the driver of any long-distance vehicle

of public transport registered in any other member state of the European Union in order to

clarify whether he is involved in domestic, point-to-point passenger transport services, and if

the operator of such services has complied with its registration obligation.

(5) In the case described in Section (1), the state tax and customs authority shall not prepare

an inspection report if no violation of the relevant legal regulations has been found, unless the

person involved in the transport of the product requests the preparation of such a report.

25

Abstracts from Decree 5/2015 (Feb 27) of the Ministry for the

National Economy on the operation of the Electronic Public Road

Transportation Control System

(hereinafter referred to as NGM Decree)

with respect to

exemptions, simplifications, easy terms

Section (1) of Article 4 of the NGM Decree

Activities involving road transportation in the following vehicles shall not belong to

the scope of EKAER:

a) vehicles of the Hungarian Army, the Military National Security Service, as well as the

law enforcement organizations listed in the Act on measures that may be taken based on

special law, and the Parliamentary Guards,

b) vehicles of foreign armed forces in service or in transit in Hungary; official or service

vehicles of international military command centers in Hungary; and vehicles of other

organizations exempted based on an international agreement or treaty, or based on reciprocity,

c) vehicles used for damage prevention or recovery in disasters defined as such in the act on

disaster recovery,

d) vehicles used under an international treaty or agreement (NATO, Schengen Agreement)

or based on reciprocity,

e) vehicles driven with a certificate issued by a humanitarian organization (declaration) and

transporting non-commercial humanitarian aid (given without compensation).

.

Section (2) of Article 4 of the NGM Decree

Activities involving the road transportation of the following goods shall not belong to

the scope of EKAER:

a) alcoholic products, beer, non-sparkling wine, sparkling wine, other non-sparkling

fermented beverages, other sparkling fermented beverages, interim alcoholic products,

tobacco products, dried and fermented tobacco, controlled energy products subject to the Act

on excise tax,

b) goods under customs supervision according to the effective customs regulations,

c) waste transportation to be reported pursuant to Regulation (EC) No 1013/2006 of the

European Parliament and of the Council of 14 June 2006 on shipments of waste,

d) metal to be licensed pursuant to the Act on metal trading,

e) materials subject to Section 1 of Article 1 of Act XCV of 2005 on human medicine and

on amendments to acts regulating the medicine market,

f) mailed letters and parcels pursuant to the act on postal services,

g) non-risky goods to be transported in a single freight in the same motor vehicle subject to

toll payment, as well as a motor vehicle over the total weight of 3.5 tons from the same

consignor to the same consignee, provided that their total gross weight does not exceed 2500

kg and their total value without tax does not exceed HUF 5 million,

h) risky goods to be transported in a single freight in the same vehicle subject to toll

payment from the same consignor to the same consignee, provided that their total gross

weight does not exceed 500 kg and their total value without tax does not exceed HUF 1

million,

26

i) security documents, their raw material, and the semi-finished products thereof covered by

the Government Decree 86/1996 (June 14) on the order of the protection of security

documents,

j) security paper granted with the certification covered by the Government Decree 52/2012

(March 28) on the cross-customs or state border trade of certain goods, services and rights

representing material value,

k) goods transported in the framework of banknote and coin issue as defined in Paragraph

(2) of Section 4 of the Act CXXXIX of 2013 on the National Bank of Hungary including their

raw material and the apparatus for their production.

Rules for individual exemption (NGM Decree)

Article 5 (1) In view of its specific manufacturing organization practices, a taxable person

subject to Section (2) of Article 6 may request the state tax and customs authority to grant

exemption for road transportation between a specific domestic loading address and a specific

domestic unloading (receipt) address provided that the entire route is in Hungary, and that the

distance between the loading and unloading (receipt) address is up to 20 km, if due to the

frequency of transportation daily reporting places a disproportionate burden on the taxable

person (hereinafter referred to as route exemption). The documents supporting the request for

exemption as well as the taxable person’s declaration of fulfilling the conditions defined in

Section (2) of Article 6 shall be attached to the request.

(2) The following shall be indicated in the request:

a) the data of the places in Hungary where the goods are loaded and unloaded:

aa) name of the settlement,

ab) name of the public area,

ac) door or house number; or lacking that, topographical lot number,

b) kilometer sections at the starting and end point of the route to be exempted; the number

of the road, including all stretches traveled,

c) a statement of the number and frequency of transports on the route to be exempted in the

calendar year preceding the request, and

d) all other circumstances proving that reporting would place a disproportionate burden on

the taxable person.

(3) The route exemption shall be granted by the state tax and customs authority if the

evaluation of all circumstances indicates that the transactions performed by the taxable person

are of low risk from the perspective of tax law, and the reporting obligation stipulated in the

Act on the rules of taxation (hereinafter referred to as Art.) would place a disproportionate

burden on the taxable person that it cannot be reasonably expected to bear.

(4) A route exemption resolution remains valid for 1 year following the day it becomes

final, and it specifies the kilometer sections of the starting and end points of the route

exempted, and the number(s) of the roads involved.

(5) Another request for route exemption may be submitted at least 90 days before the end of

the current route exemption. In this case, the provisions of Section (1)–(4) shall be applied

accordingly.

(6) If a repeated evaluation of the circumstances by the state tax and customs authority

indicates that the conditions for exemption no longer apply, the route exemption shall be

withdrawn as of the day when the resolution to that effect becomes final.

(7) Exemption shall be granted and withdrawn in a resolution by the state tax and customs

authority.

27

Disclosures with simplified information (Section (2)–(4) of Article 6 of the NGM Decree)

A taxable person wishing to engage in an activity involving road transportation may file a

simplified disclosure for the definition of an EKAER number if the goods to be transported

are not risky, and if

a) in the second tax year preceding the reporting year,

aa) in the taxable person’s stand-alone report or

ab) in the report consolidated according to the Accounting Act in which the taxable person

is included,

the taxable person’s net annual sales revenue exceeded HUF 50 billion forint and its net

revenue from the sale of internally produced inventories exceeded HUF 40 billion, and

b) the taxable person is in the register of taxpayers free of tax debt obligations kept by the

state tax and customs authority.

.

A simplified disclosure for the definition of an EKAER number may also be filed by

a) a universal postal service provider, and

b) business operator in possession of a permit defined in Article 38–39 of Regulation (EU)

No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down

the Union Customs Code.

Rules of exemption from the provision of risk guarantee (Section (8)–(9) of Article 16 of

the NGM Decree)

Those taxable persons not qualifying to be new obligors within the meaning of Art. shall be

exempted from the obligation to provide risk guarantee who or that

b)have been operating for at least two years, and are in the register of taxpayers free of tax

debt obligations kept by the state tax and customs authority, or

b) operate as business operator of strategically priority significance, and pursue activities

under bankruptcy or liquidation proceedings, and based on their individual requests the head

of the state tax and customs authority has allowed exemption from the provision of risk

guarantee.

The state tax and customs authority monitors compliance with the preconditions to exemption.

If those preconditions no longer apply, the relevant taxable person must request the issue of

an EKAER number in line with Section (3)–(4).

ekaer-related abstracts from the legal regulations · b) legal compliance inspection that is...

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