What are the possible settlement cycles?
Monthly, quarterly or annualy.
What are the submission and payment deadlines?
The 20th day of the month following the settlement period. February 25 for annual declarations.
What are the possible consequences of errors or delays?
Failure to submit a VAT declaration or submitting it after the deadline may result in a penalty of up to HUF 500,000. However, in the case of a first offense it is usually 100,000 HUF. Penalties for delays in VAT payment result in interest on the amount due, and their amount depends on the rate set by the National Bank of Hungary plus 5%. Interest is calculated for each day of delay. However, if incorrect reporting and payment have been made, the penalty may amount to up to 75% of the amount due.