In early April, the Hungarian Tax Authority (NAV) published its audit plan for 2022. Below is a summary of the main areas of audit. The detailed document is available on the tax authority's website .
As in previous years, the tax authority will continue to support taxpayers who behave lawfully and cooperate, while using all possible means to take action against taxpayers who deliberately evade tax.
The NAV determines the specific action (compliance investigation, tax and customs audit, support procedure) based on the risk analysis, the severity of the risks and the willingness of taxpayers to comply with the law.
Based on the 2022 audit plan, the audit activity of NAV will focus on four main areas.
- Audit of activities with significant budgetary risk
This includes, among others:
- sellers on websites, portals,
- producers and distributors of food products; construction/building materials traders,
- (used) motor vehicle and motor vehicle parts trade/repair,
- real estate agents; persons engaged in the sale of computer products.
- Verification of taxpayers with a fiscal revenue risk applying a targeted risk analysis based on available data
In this area, the tax authority mainly analyses data from online reporting, international information exchange and the "Employee Alert" system and takes the necessary audit measures where appropriate.
It is designated as a priority area:
- exploring chains of invoicing,
- audits of taxpayers associated with and earning profits from non-cooperative countries based on risk analysis, in particular transfer pricing,
- detecting fraudulent taxpayer behaviour related to high labour-intensive employment, such as temporary agency work, property protection and cleaning; and
- comprehensive audit of e-commerce and specifically import activity.
- Audit of priority taxpayers
Audits of the top and highest-performing taxpayers remain in the focus of NAV's audit activity.
Within this, the risk analysis of data received from the international exchange of information (country-by-country reports, cross-border transactions) will be more focused on the audit of cross-border transactions in 2022.
- Support for voluntary compliance
In this area, NAV conducts support procedures based on a continuous risk analysis according to the severity of the risks and the willingness of the taxpayers concerned to comply with the law.
On the other hand, it monitors fundamental deviations on an ongoing basis. The focus in this area includes:
- newly created enterprises and enterprises with personnel changes,
- data of the Online Invoice System and obligations relating to the Online Cash Register,
- companies that do not submit a VAT return, or that declare a zero tax liability however operate according NAV in-house audit, have a VAT difference when reviewed the data available at NAV in-house, or taxpayers "waking up from dormant status",
- tax returns containing personal income tax refund claims.
In addition to the above, the tax authority's audit plan details the main lines of the audits planned for 2022 (supporting procedures, ongoing tasks, thematic tasks).