EN - INFORMATION

With respect to the amendment of regulations pertaining to the rules of taxation, a number of new legal regulations entered into effect on 1 January 2018!

New legal regulations:
•    Act CLI of 2017 on the order of tax administration procedures (hereinafter referred to as Air.)
•    Act CL of 2017 on the rules of taxation (hereinafter referred to as Art.),
•    Act CLIII of 2017 on the means of execution to be effectuated by the tax authority (hereinafter referred to as Avt.)
•    Government Decree 465/2017 (Dec 28) on the detailed rules of tax administration procedures (hereinafter referred to as: Adóig. vhr.)

Amended legal regulation:
•    Decree 5/2015 (Feb 27) of the Ministry for the National Economy on the operation of the Electronic Public Road Transportation Control System


Other applicable legal regulations:
•    Decree 51/2014 (Dec 31) of the Ministry for the National Economy on the determination of risky products in association with the operation of the Electronic Public Road Transportation Control System

These legal regulations are accessible under the “jogszabályok” (legal regulations) menu item at https://ekaer.nav.gov.hu/.
Data to the https://ekaer.nav.gov.hu/ site are being continuously uploaded throughout 2018, again. 

 

General information relating to EKAER

Terms, definitions


•    EKAER shall mean an electronic system operated by the state tax and customs authority, intended to monitor compliance with tax obligations arising in connection with the transportation of goods on public roads from any Member State of the European Union to the territory of Hungary, or from the territory of Hungary to any Member State of the European Union, or within the framework of internal trade inside the territory of Hungary,
•    EKAER number shall mean an identification number assigned following notification of the public road transportation of a product by automated process in the Electronic Public Road Transportation Control System (EKAER) intended to identify a unit of a given product,
•    EKAER electronic platform: data access interface that can be accessed by the persons defined in the relevant legal regulations via the Internet, and with the use of which
 a) the taxpayer who or that wish to pursue activities involving transportation on public roads, the legal representative or proxy of such a taxpayer, as well as the persons authorized by the taxpayer to disclose or modify data shall fulfill their obligations to disclose specific data,
 b) the taxpayer who or that wish to pursue activities involving transportation on public roads, the legal representative or proxy of such a taxpayer may give authorization to the appointed persons to disclose data in relation to the activities of the taxpayer,
 c) the taxpayer who or that wish to pursue activities involving transportation on public roads, the legal representative or proxy of such a taxpayer, as well as the persons authorized by the taxpayer may monitor data pertaining to the available risk guarantees,
•    consignor:
 a) a taxpayer of the value-added tax associated with the selling of the products from Hungary to the other member states of the European Union, or the indirect customs representative, operator of the tax warehouse acting on behalf of taxpayers not registered domestically,
 b) for the export of products from Hungary to an address of receipt in another member state of the European Union with the purpose other than selling, a taxpayer of the value-added tax in the interest of whom the export of the product for such other purposes is realized,
 c) a taxpayer of the value-added tax who or that realizes the selling of products, which involves road transport from a domestic address of consignment to a domestic address of receipt,
 d) a taxpayer of the value-added tax who or that realizes the selling of products from another member state of the European Union to Hungary, or in the case of import for purposes other than selling the person, organization in the interest of whom the forwarding of the product to Hungary is realized,
•    consignee:

 a) taxpayer of the value-added tax who or that realizes the purchasing of products from another member state of the European Union to the territory of Hungary,
 d) for the import of products other than purchasing from another member state of the European Union to Hungary, a person, organization who or that takes over the products at the place of unloading (receipt),
 c) for the selling of products that involves road transport from a domestic address of consignment to a domestic address of receipt, a taxpayer of the value-added tax who or that realizes the purchasing of the products,
 d) for the selling of products from Hungary to another member state of the European Union, the person, organization who or that purchases the product, or for the export of products for purposes other than selling the person, organization who or that receives the products,
 e) for the transport of risky products on public roads to Hungary, the taxpayer legally using the property at the address of unloading in relation to the given legal transaction provided that this taxpayer is not identical to the person, organization defined in Paragraph a)–d),
•    risky product: foodstuffs and other products qualified as risky for the purposes of the Decree on the definition of risky products in relation to the operation of the Electronic Public Road Transportation Control System,
•    intra-Community product procurement: intra-Community product procurement as defined in the Act on value-added tax,
•    product sales: product sales as defined in the Act on value-added tax,

•    final user: a natural person who buys the given product for the purpose of use for the satisfaction of his private demands, in any quantity not exceeding the volume needed for the satisfaction of his personal demands,
•    motor vehicle subject to toll charges: a motor vehicle that is subject to toll charges under the Act on the fees charged for the use of tolled motorways, main highways and regular highways based on the distance traveled;

 

MAIN RULE


The carriage of goods on public roads with a motor vehicle subject to toll charges and motor vehicles over the total weight of 3.5 tons within the framework of supply or acquisition of goods, or movement of goods for other reasons may be performed exclusively by taxpayers holding a valid EKAER number.

The carriage of goods on public roads with a motor vehicle subject to toll charges and motor vehicles over the total weight of 3.5 tons within the framework of
 a) product purchasing or other import from another member state of the European Union to Hungary,
 b) product sales or other export from Hungary to another member state of the European Union,
 c) first product sales subject to the payment of value-added tax in Hungary, not directly to final users
(hereinafter referred to as activities involving public road transport) may be performed solely by taxpayers having valid EKAER numbers.

If the products are sold several times consecutively but transported by road only once, then the above Paragraph c) shall be applicable to the selling of products when the products are carried away. If the products are collected and transported by a taxpayer or his agent who is both a consignee and a consignor, then that taxpayer shall be deemed as the consignor who transports the products or has it transported

EKAER data disclosure shall be made in relation to products involving risks in case the products are transported in a vehicle for which no toll is payable and the total gross weight of the products transported in one transport from the same consignor to the same consignee exceeds 500 kg, or if their total price without tax exceeds HUF 1 million.

Basic information pertaining to data disclosure


For the determination of the EKAER number, a taxpayer wishing to pursue activities involving road transportation shall make a registration to the state tax and customs authority.

After applying for a user name and password via the client gate, the taxpayer obliged or entitled to make data disclosures, or his legal representative or proxy is required to disclose the specific data via the EKAER electronic platform.

Instead of the taxpayer, his legal representative or proxy, data disclosure may as well be performed by a person for whom the taxpayer, his legal representative or proxy has requested the user name and password required for data disclosure via the EKAER electronic platform in conformance to the relevant rules of Art.

The taxpayer may as well appoint a person who is entitled to modify the data defined in the relevant legal regulation in relation to the given EKAER number jointly or separately, or register or modify solely the license plate number.

An EKAER number identifies a product unit that is transported from a consignor to a consignee in a single motor vehicle once, via a certain route.
The term of the validity of the EKAER number is 15 days.

Scope of data disclosure (general information)


The state tax and customs authority registers and includes the following data in the EKAER system;
 a) EKAER number,
 b) consignor’s data (name, tax identification number),
 c) loading address,
 d) data of the consignee (name, tax identification number) defined in Paragraph a)–d) of Section 4 of Article 2 of Decree 5/2015 (Feb 27) of the Ministry for the National Economy on the operation of the Electronic Public Road Transportation Control System,
 e) unloading (receipt) address,
 f) data of the consignee (name, tax identification number) defined in Paragraph e) of Section 4 of Article 2 of Decree 5/2015 (Feb 27) of the Ministry for the National Economy on the operation of the Electronic Public Road Transportation Control System,
 g) product(s) assigned to the EKAER number:
 ga) general (commercial) name,
 gb) customs tariff number according to Annex I (Combined Nomenclature) to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff effective upon reporting (to four digits, and to eight digits in the case of products involving risks),
 gc) gross weight in kilograms for each product name (item),
 gd) in the case of transporting hazardous products, the hazardous product identifier (UN number),
 ge) subject to the taxpayer’s decision, the article number used by the taxable person (for easier product identification),
 h) reason for the road transportation of the products, such as
 ha) sales of products,
 hb) procurement of products,
 hc) contract manufacturing,
 hd) other purposes,
 i) if products involving risks are transported by road due to procurement of products or selling of products, the price of each product name (item) without tax; in the case of other road transport purposes, the historical (procurement) price of each product name (item) without tax or the historical (procurement) price of a similar product without tax; or lacking that, the production value without tax,
 j) the registration number of the road vehicle used to transport the products; in the case of transportation from another member state of the European Union to Hungary, at least the registration number(s) of the vehicle(s) in which the products are transported within Hungary,
 k) in the case of transportation from another member state of the European Union to Hungary, and in the case of transportation from a domestic dispatch address and a domestic unloading address, the time when the transporting vehicle arrives at the unloading (receipt) address; in the case of several domestic unloading (receipt) address, the time when the vehicle arrives at the last unloading (receipt) address,
 l) in the case of transportation from Hungary to another member state of the European Union, the time when transportation starts; in the case of several domestic loading addresses, the time when transportation from the first domestic loading address starts,
m) indication of combined (intermodal) transportation.

Scope of persons subject to data disclosure


In the case of import from a consignment address in another member state of the European Union to a domestic receipt address involving road transportation for intra-Community procurement of products or import for other purposes, it is the consignee who is obliged to disclose the data to the state tax and customs authority.

In the case of road transportation from a consignment address in Hungary to a receipt address in another member state of the European Union for the purposes of sales or any purpose other than selling, it is the consignor who is obliged to disclose the data to the state tax and customs authority.

In the case of the selling of products that involves road transport from a domestic address of consignment to a domestic address of receipt, the data specified in the legal regulation shall be disclosed by the consigner to the state tax and customs authority.  If non-risky products are transported by the consignee or its own agent, the data disclosure obligation shall be fulfilled by consignee. In the cases described in Section (3) of Article 3 of Decree 5/2015 (Feb 27) of the Ministry for the National Economy on the operation of the Electronic Public Road Transportation Control System, the data disclosure obligation shall be satisfied by the consignee who or that actually transports or appoints and agent for the transportation of the products.

In the case of activities involving the road transportation of risky products, the EKAER number shall be determined by the state tax and customs authority solely for taxpayers who or that
 a) with respect to risky foodstuffs
 aa) have FELIR identification numbers registered in the Information System for Food Chain Supervision,
 ab) have registered their activities as food businesses operating the first domestic place of storage – including contract storage activities – in the case of intra-Community product procurement or import to Hungary for other purposes as required in the Decree on data disclosure and traceability in relation to food production and distribution (hereinafter referred to as the VM Decree), and similarly fulfilled their obligations for the registration of the first domestic place of storage as food businesses operating the first domestic place of storage within the meaning of the relevant provisions of the VM Decree, and
 ac) have complied with their obligations to provide guarantees,
 b) have complied with their obligations to provide guarantees with respect to the other risky products specified in the separate, associated legal regulations.

Basic information in relation to risk guarantees


In the case of transport on public roads to any domestic address of unloading (receipt), the risk guarantee shall be provided by the taxpayer performing the intra-Community product procurement or the taxpayer performing the product sales – not directly to final users – as the first domestic taxpayer of value-added tax.

The new obligor shall pay a risk guarantee – in the case of the intra-Community purchasing of products defined in the ministerial decree adopted for the implementation of this Act, as well as the first domestic product sales that is subject to the assessment of value-added tax and not directly concluded towards final users – at the time of the first disclosure and in relation to the disclosures made until the 180th day following the date of the first disclosure, or also in relation to the first ten disclosures if within one hundred and eighty days following the date of the first disclosure at least 10 disclosures have not been made.

The guarantee shall continuously amount to at least 15 percent of the combined value – excluding taxes – of the risky products that belong to the EKAER numbers existing at the time of the data disclosures, determined during the data disclosures made during the 45 days preceding the data disclosure (including the day of the data disclosure) and provided upon the disclosure of arrival at the address of receipt or the commencement of transport operations, as well as the risky products belonging to the EKAER numbers that have already been established and are still valid.
Any taxpayer that has not performed activities involving the obligation to provide a guarantee before shall furnish a guarantee corresponding to 15 percent of the risky products – excluding taxes – that are concerning in his data disclosure at the time of the disclosure of his activities involving the obligation to provide a guarantee.
For the obligations to provide guarantees until the 45th day following the first disclose involving the obligation to provide a guarantee, the amount of the guarantee shall be topped up to an amount corresponding to 15 percent of the value of the risk products – excluding taxes – concerned in the given disclosures.
The amount of the guarantee may be furnished by way of
 a) payment to a separate deposit account,
 b) a guarantee undertaken by a financial institution, payment service institution, investment enterprise, and registered by the state tax and customs authority.

At the EKAER electronic portal, the amount of the available risk guarantee may be continuously monitored by the taxpayer, the legal representative or proxy of the taxpayer, as well as the person authorized to make data disclosures. The electronic portal allows queries for the current balance of the guarantee, 15 percent of the value of the risky products – excluding taxes – that have already been disclosed during the 45 days preceding the date of the query (including the date of the query), as well as – based on these two data, with respect to the available amount of the guarantee – the 15 percent of the value of of the risky products – excluding taxes – that can still be disclosed without the need to increase the amount of the guarantee. If the authorized person has the intention to disclose data in relation to risky products in excess of the given amount, the electronic portal shall send an error message requiring the completion of the amount of the guarantee, and the EKAER number cannot be determined, meaning that the new data disclosure cannot be performed.

Any risk guarantee shall be deemed to have been paid when the paid amount has been credited on the separate deposit account, or the guarantee agreement has been registered by the state tax and customs authority, or on the starting date of the validity of the guarantee at the earliest.

The attached document describes basic information in relation to the exemptions, simplifications, easy terms defined in Decree 5/2015 (Feb 27) of the Ministry for the National Economy on the operation of the Electronic Public Road Transportation Control System.