TAXCONTOR NEWSLETTER 2021/02

THE ISSUES IN THIS NEWSLETTER ARE NO LONGER UP-TO- DATE, YOU FIND UP-TO-DATE INFORMATION IN OUR NEWSLETTER NR. 03/2021.

In the issues of BIREG and vocational training (SZAKHO), significant changes have come out due to some government regulations afterwards! The changes are summarized in our next newsletter No. 03 of 2021, the changes are labelled with red!

Further changes from 2021: BIREG electronic transport system and change in the tax base of SZAHO (employment contribution tax)

1. Another obligation instead of EKÁER: BIREG system

Although the range of products subject to EKÁER notification has been significantly reduced since 2021, from the same date, the so-called BIREG system (prior electronic permit registration system) has been introduced. This is a new electronic system where road transport permits and shipment details have to be reported in real time for a given transport. Although the relevant legislation was published on the last day of 2020, and from January 1, registration and notification are -theoretically- obligatory, the system itself is not yet available.

According to the relevant ministry, during the inspections in January, those who fail to register or those with incorrect or incomplete registrations will only be warned and informed of their duties by the authority, but from February 2021, fine is expected in case of any abuse of legal regulations.

Besides, the introduction of BIREG is considered excessive and unacceptable by many professional organizations and could infringe EU law on a number of points, in particular the principle of free movement of goods.

2. Who should use BIREG and in which cases?

Those Hungarian and foreign carriers have to register in the BIREG system and provide data about each freight, who:

• are engaged in the international road transport of goods by trucks over 3,5 tonnes for a fee,
• are engaged in the international road transport of goods by trucks over 7,5 tonnes for own usage,
• carry out cabotage transport in the territory of Hungary (those foreign carriers who provide periodical transport within the territory of Hungary – immediately after their international transport with destination to Hungary).

The obligation therefore applies in general to international transport, while domestic to domestic carriage of goods only in the case of cabotage.

It is also considered to be international freight transport in case of Hungarian start and Hungarian destination if goods are loaded or unloaded outside Hungary meanwhile; and also when the start and completion of the transport of goods is abroad, but during the transport of the goods the truck goes through the territory of Hungary.

Regarding the international carriage of goods, it applies not only to carriage subject to an ECMT or a bilateral license, but also to carriage carried out as intra-community license.

3. What obligations does BIREG impose on the concerned carriers?

One-time registration (so-called operator registration): On the one hand, a one-time registration has to be performed in the system, and then it is necessary to record data on certain transports in the system.

Registration is necessary for non-EU carriers with bilateral or ECMT licenses, as well as for those holding a Community license (including Hungarian carriers).

Transport report: Thereafter, before and after the start of each transport, certain data has to be reported and some documents uploaded. The operator or the supplier is obliged to make the report, the obligation is related to the entry and exit to Hungary and also to loading and unloading.

4. What obligations does BIREG impose on senders and recipients?

The new system will also impose significant additional obligations on companies if they order transport.

As places of loading and unloading, all companies involved in transport as consignors or consignees, have to check the confirmation generated in the BIREG system and its validity, so in fact the carriers’ licenses. In case of deficiencies, there is an immediate obligation to report to the authority and the shipper has the right to refuse loading.

From July 2021, they have to also record transport-related data in the system (such as the place and time of loading and unloading, the mileage of the lorry carrying out the transit operation) and to load up the consignment note of registered transport operation.

According to the information of the Ministry, the failure to fulfil the obligations of the consignee and the consignor will continue to be punished in accordance with the previous rules, up to HUF 300,000, while the penalty for carriers may be up to HUF 800,000.

5. Expansion of the vocational training contribution (SZAHO) base

From the beginning of this year, the base of the vocational training contribution will be expanded, it has actually become equivalent as the base of the social contribution tax (SZOCHÓ): it must already be paid after other income, fringe benefits, certain defined benefits and benefits from interest rebates. According to this, 1.5% vocational training contribution has to be paid for meals and other services incurred during business travel, private use of telephone, business representation, business gifts, the cost of small gifts or the amount paid for the voluntary mutual insurance fund targeted service (1.18 times of their normal market value in case of certain defined benefit).