Key audit guidelines for 2021 by the Hungarian National Tax and Customs Authority

To secure budget revenues, tax authority will continue to focus on the audit of large and high-importance taxpayers, just as this year the tax authority will pay special attention to the control of activities with significant fiscal risk.

The list in 2021, which shows a significant overlap with the lists of previous years, includes the following sectors: 

  • electronic commerce, 
  • distribution and procurement of goods and crops related to the food industry, agriculture (sugar, cooking oil, cheese, coffee, chocolate, flour, mineral water, soft drinks, poppy seeds, nuts, rice, soy, fertilizer) 
  • construction industry, 
  • trade of used cars, parts and the car repair sector, 
  • real estate brokerage, 
  • trade of computer products, 
  • tourism, hospitality, accommodation services, 
  • wholesale of vegetables and fruits. 

Businesses beyond the above sectors are also increasingly able to count on tax audits initiated as a result of the tax authority’s risk analysis and selection based on the data obtained from almost fully extended online invoice data reporting. 

In connection with the tax audit of cross-border transactions, the tax authority also uses the data received in the framework of the international exchange of information. 

The VAT pre-disbursement audits remain in the focus of the tax authority. 

In addition to the audits of tax incentives provided in corporate tax regime (R&D, development tax incentives, tax allowance of investments serving energy efficiency purposes, etc.), the tax authority will also examine the legitimacy of using the R&D tax allowance enforced in the social contribution tax either. 

Supporting voluntary compliance will receive special attention this year. In case of taxpayers for whom the support procedure ends unsuccessfully, the tax authority initiates a tax audit. 

Finally, taxpayers who have subcontractors taxable under KATA-regime (flat rate tax of small taxpayers) can also count on an audit based on published guidelines. 

The full audit plan can be downloaded from the following tax authority website: https://nav.gov.hu/nav/adotraffipax

If you have any questions regarding the above, please feel free to contact us: 

Krisztián Vadkerti, partner
Anett Schirling, Tax advisor 

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