Those who have not opted for an EKAER number in the current year and in the previous two years, or whose tax number was suspended during the mentioned period (new EKAER obligates), have to pay a risk guarantee for a particular period of time. Companies who have submitted VAT returns in this time period, are exempted from this obligation. Therefore, the obligates are mostly newly founded companies and foreign entities who are newly registered to the VAT registrar as companies subject to VAT obligations in Hungary (new VAT obligates). According to the new regulations; therefore, the new scope of obligates have to pay a risk guarantee not only after the risky goods, but also after the non-risky goods, too.
It is important that paying a risk guarantee is essential in the case of EKAER reports for intra-community acquisition of goods and for the first instance of taxable domestic supply of goods which does not aim directly at the final user. Therefore, in the case of intra-community acquisition of goods, the above mentioned taxpayers are exempted from paying the guarantee. The risk guarantee must be provided at the time of the first reporting and at the time of the 180th day following the first reporting. If not more than 10 EKAER reporting took place until the 180th day following the first reporting, the risk guarantee has to be provided until the 10th EKAER number request.
With respect to the risk guarantee, it is important that 15% of the estimated amount of the supply is transferred in advance following the 45th day of the reporting. After that, it has to be continuously examined whether the pre-paid risk guarantee is in fact in line with 15% of the actual volume of supply in a 45-day-average. Moreover, the risk guarantee provided in connection with the EKAER obligation is not indicated on the tax account; it cannot be consolidated with other obligations. However, if the National Tax and Customs Administration finds a debt of any type of taxes, it might consolidate the account by a transfer from the amount of the risk guarantee. In these cases, it can also take place that the amount of the risk guarantee does not reach the level prescribed by law. However, if there is not enough guarantee on the dedicated bank account, no EKAER number can be requested. Therefore, it is recommended keeping a record of the risk guarantee, and if it is essential, updating the sufficient amount.
The taxpayer is exempted from paying a risk guarantee if
a) it is registered in the qualified taxpayer database of the National Tax and Customs Administration, or
b) complies with all of the below criteria:
- it is operating for at least two years, and
- it is registered by the National Tax and Customs Administration’s database for companies who have not accumulated any public debt, and
- whose tax number is not suspended during the reporting period.
Although the regulations are in effect since 1 January, there is room for implementation. A risk guarantee must be provided by new EKAER obligates in the case of EKAER numbers obtained as of 15 February 2017 – to a dedicated bank account number.
Should you have any questions, please contact your dedicated tax advisor at Mazars.