1. Introduction
Hungary has implemented the new system of EKÁER in 1st January 2015 in order to minimalize the possibility of VAT fraud in Hungarian public road transit. The EKÁER monitors good transportation inside Hungary and goods transported on public roads between member states of the EU. The EKÁER is introduced to monitor the transportation on public roads by vehicles subject to road toll payment in case of a) intra-Community supply of goods, b) intra-Community acquisition of goods and c) domestic supply of goods to an end user. The transport shall be registered in the EKÁER and it is legitimate only if the transporter possesses an EKAER number received after registration of the transport. Vehicles exceeding 3,5 tons of maximum gross weight are subject to road toll payment (trucks, trailers, etc). The EKÁER number shall be provided for the transporter prior to the transport, it is valid for 15 days (deadline for reporting the delivery). The data of the weight of the goods, the price of the goods and the number plate may be modified prior to report of the date of the delivery. Modifications shall be reported immediately upon any change. The following data shall be reported under a given EKÁER number before the transportation: sender’s data, the address of loading, the addressee’s data, the address of unloading, the data of the goods, the purpose of transport, the weight of the goods, the price of the goods, the number plate of the vehicle(s).
2. Special rules for risky goods
Special rules apply for the so-called “risky goods”. “Risky goods” that are specified in the Decree of Ministry of Economics (NGM). According to the referred decree “risky goods” are divided into two groups “risky foods” (various meat products, vegetables, fruits, grain products, etc.) and “risky products” (solvent mixtures and attenuative, lubricants, improvers, anticorrosions and other aggregates to mineral oils, etc.). In case of risky goods the relevant Hungarian law stipulates that a guarantee shall be provided by the taxpayer. The extent of the guarantee shall be equivalent to 15 % of the net price of the risky foods, risky products covered be the EKÁER number.
3. Exemption
The relevant legal regulations provide exemption from the registration and report obligation of transportation in case of non-risky goods, if the cargo’s mass does not exceed 2500kg and the cargo’s net value is under the 2 Million HUF limit.
4. Operation of the EKÁER system
The obligatory registration is conducted via an internet portal (client gateway). First, the taxpayer (primary user) applies for username and password. Then the above primary user may register secondary users who are entitled to submit registration or report of transports or modify their data.
Different rules apply for submitting report of transports in case of a) intra-Community supply of goods, b) intra-Community acquisition of goods and c) domestic supply of goods.
In case of intra-Community acquisition of goods (supply of goods from Member State to Hungary or import for other purposes, including transportation of own goods) the addressee (buyer) shall request EKÁER number and report data prior to the initiation of the transport. The addressee (buyer) or the recipient shall report the date of delivery at the unloading address on the date of deliver or not later than the first working day upon delivery.
In case of intra-Community supply of goods (sales to another Member State and export for other purposes, including transportation of own goods) the sender (seller) shall request EKÁER number and report data prior to the initiation of the transport. The sender (seller) or the loader shall report date of initiation of loading upon the initiation of loading.
In case of domestic supply of goods (first taxable domestic sale if it is not for end-user) the sender (seller) shall request EKÁER number and report data prior to the initiation of the transport. The addressee (buyer) or the sender (seller) or the recipient shall report date of delivery at the date of delivery or at the first working day upon the date of delivery.
5. Summary
Thus, the obligation of EKÁER registration and report applies to every road transport of goods performed by using vehicles subject to road toll payment. There are three cases of reporting. A) the addressee (buyer) reports in the EKÁER in case of intra-Community acquisition of goods; b) the sender (seller) reports in the EKÁER in case of intra-Community supply of goods; and c) the seller reports in the EKÁER in case of domestic supply (first taxable domestic sale if it is not for an end-user).
6. Consequences
The risk of non-reporting is high. If someone fails to comply with the regulations the NAV may apply several sanctions towards the non-performer. The highest risk is that in special circumstances the NAV may officially seize the goods. The NAV may officially seize the goods to the extent of the charge on the tax-payer’s account, and may also reimburse the cost of transfer or storage of the goods. The NAV may also expose a charge to an extent of 40% of the value of the goods or their parts if their origin could not be attested due to the lack of EKÁER number, or misreport in EKÁER, or non-performance. The legal regulations extended the transitional period for the compliance with the EKÁER, thus the registration and report obligations shall apply as of 1st March 2015.