Tax authority applies the suspension of VAT number from September 2006, and the pretence of withdraw following the suspension.
From 1st January 2012, for the more effective actions against black market the severity of sanction has been increased, due to which it is possible to immediately withdraw a VAT number even without previous suspension.
1. When is a VAT number suspended?
The VAT number shall be suspended if:
• any official tax document posted for the taxpayer is returned to the sender marked “address unknown” on two consecutive occasions, and/or it cannot be delivered due to the lack of suitable mail box;
• tax authority obtains reliable information during an inspection of the taxpayer’s registered office that the taxpayer cannot be found at this registered office;
• the taxpayer failed to comply with the obligation of declaration or tax (tax advance) payment liability to the state tax authority within 365 days from the statutory deadline or from the original due date.
2. When is a VAT number withdrawn with immediate effect?
The VAT number shall be withdrawn with immediate effect without previous suspension by the tax authority if:
• the taxpayer’s registered office notified is false or untrue;
• the taxpayer failed to register its legitimate representative at the state tax authority as prescribed by the relevant regulations;
• the taxpayer’s registered legitimate representative is not a real person.
3. What is one of the most important modifications from 1st January 2012?
It is an important modification that the taxpayer who does not fulfil the obligation of deposit and publication of financial statement due to the act on accounting, the opportunity of suspending the VAT number ceases and instead, for the first time, the state tax authority may impose a default penalty up to 500 thousand HUF with a 30-day-long deadline on the taxpayer to fulfil its liability. If the taxpayer does not fulfil the liability despite the request, the tax authority shall repeatedly notice the taxpayer by a 60-day-long deadline, simultaneously imposing default penalty up to 1 million HUF. If the taxpayer henceforward neglect to fulfil its liability, the tax authority shall withdraw the taxpayer’s VAT number without suspension and initiates the company to be pronounced ceased.
4. How would the taxpayer get information about the suspension or withdraw of its VAT number?
From 1st January 2012, the state tax authority informs taxpayers about the suspension and withdraw of VAT number through public announcements. The announcement is exclusively published on the website of the state tax authority, under suspension of VAT numbers.
The decree suspending or withdrawing the VAT number also includes community tax number and in case of taxpayer participating in a group taxation agreement also regarding to group identification number.
5. What can a taxpayer do if the VAT number is suspended?
The suspension of VAT number in a resolution may be appealed within fifteen days of the day when delivered.
If the reason of suspension is one of the following two:
• any official tax document posted for the taxpayer is returned to the sender marked “address unknown” on two consecutive occasions, and/or it cannot be delivered due to the lack of suitable mail box;
• tax authority obtains reliable information during an inspection of the taxpayer’s registered office that the taxpayer cannot be found at this registered office;
tax authority may initiate the company to be ceased.
The taxpayer may submit a petition for the abolition of suspension. The tax authority may investigate the authenticity of the company seat that is not defined as an audit. If the tax authority arrives at the conclusion that the suspension is no longer justified, shall adopt a resolution to terminate suspension, or shall reject the petition in other cases. The tax authority may terminate suspension ex officio by way of a resolution if it obtains reliable evidence that the grounds upon which the suspension was ordered no longer exist.
6. What can a taxpayer do if the VAT number is withdrawn?
If the tax authority did not cease suspension within 15 days following the suspension, it would withdraw the VAT number by decree. The decree of withdraw may be appealed within 8 days.
In case of VAT number withdrawn by legally binding decree, the taxpayer may repeatedly ask for VAT number by submitting a petition.
7. For what is the tax payer not entitled for during the suspension?
The taxpayer whose VAT number had been suspended may not:
• claim any tax refund,
• apply for central subsidies,
• may not request the repayment of any amount overpaid,
in connection with and subsequent to the period between the operative dates of the resolutions for suspension and for lifting the suspension,
The tax authority may comply with the taxpayer’s request for tax refund or application for central subsidies in connection with any period preceding the operative date of resolution for the suspension of his VAT number only after the operative date of resolution ordering the termination of suspension.
Source: www.apeh.hu; Section 24/A and 24/B of Act Nr. XCII of 2003 on the Rules of Taxation
