Uncover the process of rectifying an erroneous VAT registration in our detailed blog post.
Whether a company or other organisation is being established, an application for the organisation's tax number must be submitted to the state tax and customs authority at the same time as the application for registration is submitted to the registration authority.
If the VAT liability of the organisation being established is not excluded, given that it does not carry out any economic activity within the meaning of the VAT Act or carries out only activities of public authority, it must declare how the VAT liability is to be determined. The VAT liability can be established on the basis of the general rules, but under the VAT Act there are also a number of other options available.
It is often the case that the optimum form of taxation for the business is not fully developed when the business is set up, or that new activities are added to the business, which justify a different form of taxation. However, it is not usually possible to change the way in which VAT is calculated until the first day of the year following the year in question.
The possibility to amend the declaration made at the time of filing is provided for by Section 257/F of the VAT Act to eliminate the failure to file a declaration at the time of establishment or even the failure to file a declaration at the time of establishment: 'The taxpayer may initiate the amendment of the declaration made at the time of filing by means of a correction request submitted to the state tax and customs authority prior to the commencement of the subsequent tax audit of the returns, within the limitation period for the right to tax assessment, in accordance with Section 20 (5), Section 30 (4), Section 45/A. § 80(2)(b), § 80/A(1), § 88(1), § 192(1), § 196/G(1), § 197(1), § 212/A(1), § 218(1), § 220(1), § 224. § (1), provided that the amendment does not affect the amount of the taxable amount, the tax payable and the input tax deductible which he has determined and declared."
The request for rectification may be made to amend declarations relating to intra-Community acquisitions of goods, the place of supply of services, the assessment of the taxable amount in forints, the taxable amount of supplies and leases of immovable property, the exemption from taxable persons and the choice of cash accounting, and the taxable person and reseller status of agricultural activity.
The possibility to submit a request for correction is therefore not unlimited in time: it is possible to do so within the limitation period for the right to assess tax, provided that the amendment does not affect the amount of the tax base established and declared by the taxpayer, the amount of tax due and the amount of input tax deductible.
The request for correction may be submitted on form 20T201T, provided that proof of either ad hoc or permanent right of representation (EGYKE) is provided to the NAV prior to submission; otherwise the request submitted will be considered invalid by the NAV.