Hungary VAT Update
The EC Authorities have sent notice to Hungary that states that Hungary’s Electronic Trade and Transport Control (EKAER) System is not compatible with the EU VAT Directive. It has been confirmed that it affects cross-border EU transactions and introduces administrative formalities connected to those transactions.
Under the system all companies must provide for VAT purposes the Hungarian tax authorities with information on certain business-owned transport that use public roads in Hungary. Hungary has been given two months to respond.