According to origo.hu, hundreds of billions of forints disappear because of the black market in the construction industry: employees are not reported, and there is often no billing because of the high VAT.
Gyozo Vidor, President of the Hungarian Building and Construction Products Association told newspaper Napi Gazdasag that illegal work has been an old problem of the sector, besides that there are three different procedures are typical of the trickery with construction products.
There are products which are never taxed, such as sand, gravel, cement or even concrete shipments.
Prevention would be simpler
In other cases, various import products are not registered in Hungary, so they will remain “invisible” in terms of statistics and tax payments.
The third case is the classical fictional travel: the given product travels only on paper, then it is billed in the name of the given company for no more than two months, but by the time the foreign tax authorities would take measures, the company disappeared.
Gyozo Vidor told the newspaper the detection of the frauds causing larger losses, which are significant even for the budget, is a so complicated, money-consuming work that one should pay more attention to prevention.
based on the article of origo.hu
translated by BA