Mandatory electronic reporting of goods freight movements to fight VAT fraud
Hungary has launched (February 2021) an electronic registration portal for mandatory notifying the tax authorities of qualifying cross-border freight transport. It is aimed at ensuring and stocks movements may be verified against subsequent VAT and similar tax reporting. Also, for ensuring correct road regulatory compliance of freight operators.
The EU’s current review of Digital Reporting Requirements (DRR) may be expanded to look at using such systems as EKAER and BIREG.
Qualifying freight journeys
Any Hungarian or non-resident transport operator must register with BIREG, and then provide advance notification of the following qualifying international journeys of vehicles over 3.5 tons to, from or through Hungary. Transport under community license is exempt from registration, except the cabotage operations. This includes passenger, goods and carbotage transport.
Notifications should be registered on the portal in advance of the start of journeys, and when loading or unloading in Hungary. The loading sites must be certified, and have an obligation to verify the journey registration on BIREG.
Fines for non-registration of journeys are HUF 800k (approx €2,240).
Hungary EKAER VAT freight transport register
In 2015, Hungary launched its EKAER freight transport register to help detect and prevent VAT fraud.
The Electronic Trade and Transport Control System (‘elektronikus közúti áruforgalom-ellenőrző rendszer’) is an online portal for the registration of feight movements inside Hungary, and to and from other EU member states through Hungary. The application will take place by using the same portal that is used to file VAT-returns. EKAER-access will be necessary in order to be able to apply for EKAER-numbers.
Qualifying transportation of freight must be register 15 days or less in advance. They will be granted an unique registration number.
It is the responsibility of the VAT registered supplier who performs the taxable supply of goods to apply for an EKAER-Number prior to the commencement of the transportation or loading:
• Intra-Community acquisitions have to be registered by the acquirer.
• Intra-Community supplies and export supplies have to be registered by the supplier.
• Taxable supplies within Hungary have to be registered by both, the supplier and the customer.
The information regarding the supplied goods must include the following details:
• description of the goods
• customs tariff number
• article number
EU to include freight registers in broader digital reporting strategy?
EU VAT in the Digital Age reforms include a channel for harmonised Digital Reporting Requirements (DRR) and Continuous Transaction Controls (CTC) by EU states. This grew from the 2020 EU Tax Action Plan proposals for a fairer and more efficient EU tax regime. This may be expanded to include freight digital registers such as Hungary’s or India e-Way bills.
by EU states. This grew from the 2020 EU Tax Action Plan proposals for a fairer and more efficient EU tax regime.