Decision (EU) 2018/1490 authorising Hungary to introduce a special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax

Author (Corporate)
Series Title
Series Details L 252, 8.10.2018
Publication Date 08/10/2018
Content Type

Summary:

On 21 June 2018 the European Commission presented a proposal for a Council Implementing Decision authorising Hungary to introduce a special measure derogating from Article 287 of the VAT Directive.

The Council of the European Union adopted the Decision on 2 October 2018.

Further information:

Under Article 287 of Directive 2006/112/EC (the VAT Directive), Hungary may exempt from VAT taxable persons whose annual turnover is no higher than the equivalent in national currency of €35,000. On 13 November 2017, Hungary requested authorisation to increase the exemption threshold to €48,000 as from 1 January 2019.

From the information provided by Hungary, raising the exemption threshold would increase the number of small enterprises that may benefit from the reduction of administrative burdens and compliance costs. Moreover, since this threshold would be aligned with another threshold concerning income tax, small enterprises would benefit from fully simplified tax arrangements.

It is therefore proposed to allow Hungary to increase the exemption threshold for SMEs from €35,000 to €48,000 until 31 December 2021.

Source Link https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.252.01.0038.01.ENG
Related Links
EUR-Lex: COM(2018)486: Proposal for a Council Implementing Decision authorising Hungary to apply a special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:486:FIN

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