Hungary: Significant administrative facilitation for organizations with AEO status; Clarification of exemption rules
The latest amendment to the Electronic System for Transportation of Goods on Public Roads (EKAER), introduced in order to reduce VAT fraud related to transportation of goods, entered into force on 13 October 2016. With the current amendment, the legislator has solved the previous inconsistency of laws regulating EKAER and has made it clear that vehicles not subject to toll but exceeding 3.5 tons after loading, must also apply for an EKAER number. It has also been clarified as a result of the current amendment that the EKAER exemption applies to vehicles that are not subject to toll and that transport goods weighing less than 2500 kg and not exceeding 5 million HUF from the same consignor to the same consignee.
On the other hand, the legislator has enabled a significant administrative facilitation for organizations with so-called AEO (Authorised Economic Operator) status. This special authorization can be obtained by economic operators that fulfil the conditions of the Union Customs Code (e.g. comply with customs and tax regulation, operate transparently, are solvent) and are thus declared reliable by the customs authority.
Under the amendment, these organizations can fulfil their reporting obligations with simplified data content. This means in practice that those with AEO status have to provide substantially less data to apply for an EKAER number: besides the name and tax identification number of the consignor and consignee, it is enough to indicate the licence plate number of the vehicle used during transportation on a public road. Therefore it is worth obtaining AEO authorization for enterprises operating in the field of transportation, export and import, because, besides the benefits that can be exploited in the customs procedure, considerable facilitation is granted in the EKAER system as well.
Source: Act. Nr. XCII. of 2003on Rules of Tax Procedure-Ministerial Decree (NGM) Nr. 5. of 2015 on Rules of the Electronic System for Transportation of Goods on Public Roads