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01May

Scope of registration of company changes

Learn about the important changes that may impact the scope of registration for your company with our comprehensive guide.

Once a company has been set up, there are many situations in the life of a business where it may be necessary to register changes to company details. These changes can be, for example, a change in the name, address or principal activity of the company, or an increase or decrease in the subscribed capital or even the cancellation of the company.

The business register contains the date of the change in the company data. The change of data may differ in terms of when it takes effect (from when it is effective) and when it is actually registered by the court. In the absence of an indication of the date of the change or in the case of contradictory information, the date of the change in the business register is normally the date of the underlying decision.However, there is one exception: the company cannot determine the date of the reduction of the share capital in advance, the date of the change being the date of registration with the court. 

The company may, with certain exceptions, specify the date of the change in advance in the application for registration of the change. However, this may not be earlier than the date of the decision giving rise to the change. In a typical case, this would be the planned date of registration of the transformation.

A frequent source of uncertainty for company directors is whether the new data (e.g. new company name, registered office) can be used in the company's affairs after the decision on the change of company data has been taken, but before it is registered. At that time, the new information is not yet included in the business register as part of the registered data, but can be found in the business database only by means of the remark "under registration".


In connection with the data registered retroactively to the date of the amending, company ownership resolution, Dr. György Zalavári, lawyer, recommends that both the old and the new data be entered in the official documents during this transitional period.

If you have any legal questions regarding company law, please contact the author of this article, Dr. György Zalavári, lawyer.


 

Dr. György Zalavári LL.M.
Ecovis Zalavári Legal Hungary
Lawyer | Mediator | Corporate Law and Data Protection Specialist
gyorgy.zalavari@ecovis.hu


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08Apr

Incorrect VAT registration? Request a correction!

Uncover the process of rectifying an erroneous VAT registration in our detailed blog post.

Whether a company or other organisation is being established, an application for the organisation's tax number must be submitted to the state tax and customs authority at the same time as the application for registration is submitted to the registration authority.

If the VAT liability of the organisation being established is not excluded, given that it does not carry out any economic activity within the meaning of the VAT Act or carries out only activities of public authority, it must declare how the VAT liability is to be determined. The VAT liability can be established on the basis of the general rules, but under the VAT Act there are also a number of other options available.

It is often the case that the optimum form of taxation for the business is not fully developed when the business is set up, or that new activities are added to the business, which justify a different form of taxation. However, it is not usually possible to change the way in which VAT is calculated until the first day of the year following the year in question.

The possibility to amend the declaration made at the time of filing is provided for by Section 257/F of the VAT Act to eliminate the failure to file a declaration at the time of establishment or even the failure to file a declaration at the time of establishment: 'The taxpayer may initiate the amendment of the declaration made at the time of filing by means of a correction request submitted to the state tax and customs authority prior to the commencement of the subsequent tax audit of the returns, within the limitation period for the right to tax assessment, in accordance with Section 20 (5), Section 30 (4), Section 45/A. § 80(2)(b), § 80/A(1), § 88(1), § 192(1), § 196/G(1), § 197(1), § 212/A(1), § 218(1), § 220(1), § 224. § (1), provided that the amendment does not affect the amount of the taxable amount, the tax payable and the input tax deductible which he has determined and declared."

The request for rectification may be made to amend declarations relating to intra-Community acquisitions of goods, the place of supply of services, the assessment of the taxable amount in forints, the taxable amount of supplies and leases of immovable property, the exemption from taxable persons and the choice of cash accounting, and the taxable person and reseller status of agricultural activity.

The possibility to submit a request for correction is therefore not unlimited in time: it is possible to do so within the limitation period for the right to assess tax, provided that the amendment does not affect the amount of the tax base established and declared by the taxpayer, the amount of tax due and the amount of input tax deductible.

The request for correction may be submitted on form 20T201T, provided that proof of either ad hoc or permanent right of representation (EGYKE) is provided to the NAV prior to submission; otherwise the request submitted will be considered invalid by the NAV.


Dr. György Zalavári LL.M.
Ecovis Zalavári Legal Hungary
Lawyer | Mediator | Corporate Law and Data Protection Specialist
gyorgy.zalavari@ecovis.hu



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