24/04/23 (Agence Europe) – On Thursday 20 April, the European Commission proposed to allow Hungary to apply a derogation to the Value Added Tax (VAT) directive. Currently, companies with an annual turnover not exceeding the forint equivalent of €48,000 are exempt from VAT until 31 December 2024. In a letter dated December 2022, the Member State had requested to raise the threshold to €71 500. This new threshold would simplify compliance with a Hungarian income tax for small companies. This valuation would also be justified by inflation and the increase in taxpayers’ revenues created by economic growth. This measure could affect around 35,000 companies. The decision still needs to be formally approved by the Member States. Read the proposal: https://aeur.eu/f/6i1 (AD)