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The new NAV law could make Hungary’s National Tax and Customs Administration (NAV) one of the most competitive offices in the EU, the Finance Ministry (PM) said after the bill was presented to Parliament on Tuesday.
According to the prime minister’s announcement, the legislation will complete the integration of the tax authority within the organization, and will start a new era in the office that, recognizing the performance and experience of employees, will make the tax office even more efficient. .
In addition to providing 94 percent of budget revenue to the tax office and assisting with tax administration on a number of services, the amount of office tasks is growing significantly year over year. Since January 1 this year, NAV has practically become Hungary’s universal executive body. Administrative cases were transferred in 2018, and this year all court cases will be implemented by NAV, which means some 300,000 new cases in 2020 compared to previous ones, the prime minister notes.
On July 1 of this year, the tax office took over another task: sole proprietorship registration. Currently, more than 562,000 sole proprietors are included in the tax office’s database, they added.
The actual property database comes
According to the announcement, NAV’s repertoire of tasks will be further expanded next year. In addition to handling tax matters related to motor vehicle tax, the local business tax return must also be submitted to the tax office, the latter providing tax administration facility for approximately 800,000 businesses as of 2021. With registration From the so-called beneficial ownership database, NAV employees will play an even bigger role in the fight against money laundering next year.
Another IT tax bureau service will debut next year, which, as before, will also encourage companies to adopt digital solutions more broadly, thereby improving the country’s competitiveness. This new service is a recommendation from the tax office of draft VAT returns, which more than half a million VAT refund companies are expected to expect in the second half of 2021, the prime minister said.
According to the communication, the tax office’s online tools and risk-based auditing practice have also proven their value in fighting the shadow economy. VAT loss due to tax evasion fell from 21% to 7% last year, outpacing Germany, Austria and Denmark. The Ministry of Finance aspires to continue improving, so next year it will create a Committee for Sustainable Economic Whitening. Stopping illegal actors requires the knowledge and experience of NAV specialists.
More tasks with fewer people
NAV performs both its current and new tasks at the highest possible level, but at the same time with fewer and fewer staff. While at the end of 2015, more than 21,000 people worked in the office, there are currently about 18,000, they noted. Despite all this, the organization implemented exemplary measures and services throughout the EU. For four years now, it has been working for more than five million people, as NAV is preparing a draft PIT declaration for everyone.
With the new NAV law presented, the integration of the organization will be completed. The bill, if voted by Parliament, creates a unified legal relationship; the so-called tax and customs service, which does not distinguish between civilian and professional personnel in terms of their legal status and applies to government officials as well as financial guards and case managers.
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