Two areas of taxation where advance preparation can reduce risks

Tax risks often do not arise from a single incorrect decision, but from practices that gradually develop during a company’s day-to-day operations. Entering a new market, the emergence of Hungarian VAT obligations or a potential tax authority audit can all create situations where a prior review of processes becomes particularly important.

Although proper VAT compliance and conscious preparation for a NAV audit relate to different business situations, they have one key point in common: shortcomings identified in time can be addressed before more significant tax risks and penalties arise. Niveus’ experts provide practical support to companies in both areas.

NAV AUDIT SIMULATION

Objective: to assess the company’s preparedness for a potential tax authority audit.

Why is it relevant?

NAV is increasingly carrying out risk-based, targeted audits, while penalty practices have become stricter and higher sanctions have appeared in certain areas.

During an audit simulation, we review the company’s operations from the perspective of the tax authority. Depending on the client’s needs, the review may cover, among other areas, VAT, corporate income tax / KIVA, local business tax, payroll taxes and contributions, and even EPR or environmental product charges. This allows any shortcomings identified to be addressed before an actual audit takes place.

How can we support you?

In line with the tax authority’s audit methodology, we carry out a targeted review to assess the compliance of the company’s tax practices.

VAT COMPLIANCE

Objective: to ensure the proper management of Hungarian VAT obligations and to establish appropriate operating practices.

When is it relevant?

When a foreign company starts activities in Hungary, establishes a Hungarian subsidiary or carries out VATable transactions in Hungary.

For companies entering the Hungarian market, VAT obligations may arise from the very beginning of their operations. Registration itself can be a challenge, but the larger task is to establish the right operating practice: determining the place of supply, applying direct and reverse charge taxation correctly, and managing cross-border transactions. An incorrectly designed practice can quickly become a significant tax risk.

How can we support you?

We provide comprehensive support throughout the VAT compliance process.

More manageable tax risks through advance preparation

Whether a company is setting up new operations in Hungary or reviewing its existing tax practices, well-structured processes can significantly reduce later uncertainties. A preliminary review makes it possible to identify and address problematic areas before a potential tax authority audit or a more significant tax risk arises.

Niveus’ experts support companies both in developing VAT compliance processes and in carrying out targeted reviews aligned with NAV’s audit methodology.