Environmental Product Tax obligation for webshops



According to the bill recently submitted to the Parliament about the proposed changes of the tax rules of Hungary from 2016, the non-resident online stores has to pay Environmental Product Tax in Hungary if the company has VAT registration in Hungary.

The online stores and any distance selling companies have to be registered in the Hungarian VAT system if they sale volume for Hungarian non-VAT payers exceeds the 30 000 EUR. The Environmental Product Tax (EPT) should be paid for the import  and EU purchase of the product and packaging materials specified in the law by the first dealer or producer in Hungary.

The products are subject to the EPT are the followings: batteries, packaging, other mineral oil products (lubricants), plastic products, chemical products, electronic devices, tyres, paper (for advertising or office use).

The tax rate defined in Hungarian Forint as per the weight calculated in kilograms of the taxable product, ranging from 19 Forint / kg up to 1900 Forint / kg. The tax has to calulated as per the weight of th sold or released (invoiced) products and its ingredients and packaging. The EPT has to be filed and paid quaterly and really detailed records should be kept by the taxpayer to prove the calculation of the tax.