1. When can NAV conduct a tax audit?

The Hungarian tax authority, NAV, may conduct different types of tax audits and tax authority procedures to examine whether a company or individual has complied with its tax obligations.

​

What can NAV examine?

Depending on the procedure, NAV may examine tax returns, accounting records, invoices, business transactions, supporting documents and other information relevant to the taxpayer's obligations.

A tax audit may concern, among other things, corporate taxation, VAT, personal income tax or other Hungarian tax obligations.

​

Why is the first NAV request important?

The first communication from NAV should be taken seriously. The documents requested, the deadline for responding and the scope of the procedure may significantly affect how the case develops.

Obtaining legal assistance at an early stage can help a company understand its position and respond appropriately.

​

2. What does a NAV tax audit mean for a company?

A tax audit can require significant time and resources from a business and may result in financial and legal consequences.

​

What can be the consequences of a tax audit?

Depending on the findings, NAV may establish additional tax liabilities or other consequences, including tax penalties and late-payment interest.

The consequences depend on the circumstances of the individual case and the findings made by the tax authority.

​

When may legal assistance be necessary?

Legal assistance can be particularly important when the issues examined by NAV involve complex transactions, disputed tax treatment, significant financial exposure or a disagreement with the tax authority.

​

3. When should you contact a lawyer regarding a NAV tax audit?

A company does not necessarily have to wait until NAV has made a finding before seeking legal assistance.

​

When you receive the first notification from NAV

The beginning of the procedure is often the best time to review the situation and determine how the company should respond to NAV.

​

During the tax audit

Legal assistance may include reviewing NAV's requests, examining documents and evidence, preparing submissions and representing the company before the tax authority.

​

After NAV has made a finding

If the company disagrees with NAV's findings, the decision and the available legal remedies should be reviewed carefully.

​

4. How can we help during a NAV tax audit?

Dr. Gábor Major provides legal assistance to companies and individuals in Hungarian tax authority proceedings.

​

Reviewing the NAV request and the circumstances of the case

We examine the communication received from NAV and the circumstances relevant to the procedure in order to identify the key legal and tax issues.

​

Reviewing documents and evidence

Relevant contracts, invoices, accounting documents, correspondence and other evidence may be reviewed in order to assess the company's position.

​

Representation before NAV

Where appropriate, we represent the client before the Hungarian tax authority and assist with communication and procedural matters.

​

Assessing NAV's findings

If NAV raises objections or makes findings against the taxpayer, we assess their legal basis and potential consequences.

​

Legal remedies

Where a legal remedy is available, we assist with the preparation of objections, submissions and other appropriate legal measures.

​

5. Legal representation before NAV

For a foreign-owned company, dealing with the Hungarian tax authority can be particularly challenging when the company's management is not familiar with Hungarian tax procedures.

​

Representation during a tax audit

We assist companies in dealing with NAV during tax audits and related proceedings.

​

Communication with NAV

We can assist with communications with the Hungarian tax authority and help ensure that relevant procedural matters are addressed appropriately.

​

Preparing submissions and responses

We assist with preparing responses, observations and other legal submissions relating to the NAV procedure.

​

Protecting the company's legal interests

The objective is to ensure that the company's legal position is properly assessed and represented throughout the procedure.

​

6. Tax law advice for businesses in Hungary

Legal advice can also be useful before a dispute or tax audit arises.

​

Identifying tax-related legal risks

We help businesses identify potential legal risks arising from their activities, transactions and contractual arrangements.

​

Reviewing planned transactions from a tax-law perspective

Planned transactions and business arrangements may raise Hungarian tax-law issues that should be considered before the transaction is implemented.

​

Preventing problems with NAV

Understanding the legal requirements applicable to a business can help reduce the risk of later disputes with the Hungarian tax authority.

​

Dealing with tax-related legal problems

Where a tax-related problem has already arisen, we assist in assessing the legal position and determining the appropriate course of action.

​

7. What happens if NAV makes a finding against the company?

A NAV finding does not necessarily mean that the company's position cannot be challenged.

​

Legal review of NAV's findings

The findings and reasoning of the tax authority can be reviewed from a legal perspective, including the evidence and legal provisions relied upon by NAV.

​

Objections and legal remedies

Depending on the type of decision and the applicable procedure, the taxpayer may have legal remedies available.

​

Tax disputes and tax litigation

Where a dispute cannot be resolved during the administrative procedure, further legal proceedings may become necessary.

​

Representation before the court

Where appropriate, legal representation may also extend to judicial proceedings concerning the tax dispute.

​

8. Tax audits and other NAV procedures

Tax audits are only one type of procedure that may involve the Hungarian tax authority.

​

Tax number cancellation

The cancellation of a Hungarian company's tax number can have serious consequences for its ability to conduct business and issue invoices. Legal assistance may be necessary to assess the circumstances and possible remedies.

​

Compliance investigations

NAV may also conduct compliance investigations examining whether a taxpayer is fulfilling its tax-related obligations.

​

Other proceedings before NAV

We assist clients with various tax authority matters and procedures involving the Hungarian tax authority.

​

Related corporate and insolvency issues

Tax authority proceedings may sometimes be connected with corporate-law, enforcement or insolvency-related issues.

These aspects may also need to be considered when assessing the overall legal position of a company.

​

9. Why contact Dr. Gábor Major?

Tax-law expertise

Dr. Gábor Major focuses on tax law and related legal matters affecting businesses and individuals in Hungary.

​

Previous professional experience at NAV

His previous professional experience at the Hungarian tax authority provides practical insight into Hungarian tax authority procedures.

​

Representation before NAV

He represents clients in tax audits and other proceedings before the Hungarian tax authority.

​

Representation of businesses and individuals

Legal assistance is available to Hungarian and foreign-owned businesses as well as individuals in appropriate tax-related matters.

​

10. Frequently Asked Questions

 

What should I do if my Hungarian company is being audited by NAV?

Do not ignore the first communication from NAV. Review the scope of the procedure, the requested documents and the applicable deadlines.

Where the matter involves significant financial or legal risks, obtaining legal assistance at an early stage can be advisable.

​

When should I contact a lawyer regarding a NAV tax audit?

You can contact a lawyer as soon as you receive the first notification from NAV. Early legal review can help you understand the procedure and determine how to respond.

​

Can a lawyer represent me before NAV?

Yes. Depending on the circumstances and applicable procedural rules, a lawyer may represent a client in proceedings before the Hungarian tax authority.

​

What can NAV examine during a tax audit?

The scope depends on the particular procedure. NAV may examine tax returns, accounting records, invoices, transactions, contracts and other documents relevant to the taxpayer's obligations.

​

What can I do if I disagree with a NAV finding?

The available options depend on the type of decision and the applicable procedure. The NAV finding should be reviewed carefully to determine whether an objection, appeal or other legal remedy is available.

​

Can I get tax law advice before NAV starts an audit?

Yes. Legal advice before a NAV audit can help identify potential tax-law risks and address issues before they develop into a dispute.

​

Does Dr. Gábor Major represent clients before NAV?

Yes. Dr. Gábor Major provides legal assistance and representation in tax audits and other proceedings before the Hungarian tax authority.

​

11. Expert legal assistance with NAV tax audits and Hungarian tax-law matters

If your company has received a notification from the Hungarian tax authority, or you would like to assess the legal risks of a tax-related matter before taking action, professional legal assistance can help you understand your position and your options.

​

Dr. Gábor Major provides legal assistance in NAV tax audits, representation before NAV, tax-law matters and tax authority proceedings in Hungary.

Contact us to discuss your case.

​

​