Improved tax morale could bring tax gap under 10 pc, says Hungarian finance minister

Improved tax morale that comes with measures the government has taken to crack down on tax evasion, such as the introduction of online invoicing, could bring Hungary’s tax gap under 10 percent, Finance Minister Mihály Varga told MTI.

Companies are now required to use an online system for issuing invoices that automatically reports transactions with VAT of 100,000 forints (EUR 310) or more to the tax office, under rules in effect from July 1 and enforced from August 1.

Varga said companies had submitted 7.5 million electronic invoices to the tax office in the first two weeks after the mandatory practice started being enforced.

So far, 272,000 businesses have registered to use the online system, he added.

Mandatory e-invoicing is one of a number of measures Hungary’s government has taken to crack down on tax evasion in recent years.

As we wrote yesterday, the Hungarian Trade Union Confederation is urging consultations about planned staff cuts in public administration, read more HERE.

Also we wrote: the finance ministry has calculated that GDP growth could reach 4.3 percent for the full year, Ágnes Hornung, the ministry’s state secretary said, details.

Source: MTI