Excise licences and registration procedures

Summarises the rules pertaining to the issuance of excise licences. Includes a description of the activities for which a licence is required and the conditions for issuing licences. Provides information on the rules for withdrawing and suspending licences.

Also provides information on registration procedures.

Kulcsszavak: National Tax and Customs Administration NTCA excise licences general conditions special conditions application licensing procedure NAV_J31 NAV_J37 NAV_J38 NAV_J21 withdrawal and suspension of a licence registration commercial gas oil

Excise licences

 

Excisable products may be produced, stored, used, received, forwarded, and sold in possession of an excise licence issued by the NTCA.

 

Energy products, beer, still and sparkling wine, other still and sparkling fermented beverages, intermediary alcoholic products, alcoholic products, and tobacco products qualify as excisable products.

 

Types

 

1. Warehousekeeper licence

 

Excisable products may be produced, stored, used, sent, and received without paying tax only in possession of a warehousekeeper licence (as part of duty-suspension arrangements).

 

However, a warehousekeeper licence is not required:

 

2. Simplified warehousekeeper licence

 

Still wine may be produced by a small wine producer only in possession of a simplified warehousekeeper licence.

 

The following may be produced and stored in simplified tax warehouses:

 

Besides the products listed above, no other excisable products may be produced, stored, or bottled in simplified tax warehouses (including beer, other sparkling wine, other still or sparkling fermented beverages, intermediary alcoholic products, alcoholic products).

 

3. Right of use

 

The following may be performed in possession of a right of use

 

In case of activities requiring a right of use, the purpose of use cannot be other than the use of controlled mineral oil or observed product as fuel or for heat.

 

4. Registered trading licence

 

Registered traders are entitled to receive excisable products transported from other Member States as part of duty-suspension arrangements, at the site specified in the licence.

 

5. Ad hoc registered trading licence

 

In possession of an ad hoc registered trading licence, the trader is entitled to receive one consignment.

 

6. Registered consignor licence

 

In duty-suspension arrangements, the registered consignor is entitled to send excisable products imported from a third country and released for free circulation for the purposes of customs law, from the import location to the consignee (tax warehouse, Member State tax warehouse, Member State registered trader). The excisable product is transported directly from the importer to the consignee, meaning the untaxed imported excisable products will not enter the possession of the registered consignor.

 

7. Excise licence

 

An excise licence is required for free traffic commerce, thus

 

The following products may be involved in excise licence activities:

 

 

 

The general conditions for the issuance of the licence

 

The following persons are entitled to the licence:

 

Of the above list, the excise guarantee is especially important, which has to be paid to cover the tax risk stemming from the production, storage, and transport and the deferred payment of taxes of excise taxes. The amount of excise guarantees differs according to the various licence types. If certain conditions are met, their amount, can be reduced by applying various discounts.

 

The special conditions for the issuance of the licence

 

The special conditions contain the provisions that are additional to the general rules or that differ from those.

 

1. Warehousekeeper licence

 

In addition to the general conditions, the party submitting the application also has to meet the following conditions:

Law provides exceptions for certain warehousekeeper licence types from having to meet certain special conditions.

 

The discounts applicable to the amount of the excise guarantee may not be validated as the authorised warehousekeeper qualifies as a risky taxpayer.

 

2. Simplified warehousekeeper licence

 

The applicant for the licence does not have to meet the conditions pertaining to

. Furthermore, the authentication of the equipment used to store still wine is not required for the issuance of the licence.

 

If the simplified authorised warehousekeeper meets the conditions for being a small wine producer, it shall be exempt from under the requirements pertaining to authorised warehousekeepers on the basis of the notification it submits to the NTCA.

 

As a general rule, the simplified authorised warehousekeeper shall not have to provide an excise guarantee for bottle-fermented sparkling wine (for which the tax rate is not 0), except if it qualifies as a risky taxpayer.

 

3. Right of use

 

In addition to the general conditions, the party submitting the licence application also has to meet the following conditions:

The discounts applicable to the amount of the excise guarantee may not be validated in the case of risky taxpayers.

 

4. Registered trading licence, Registered consignor licence

 

In addition to the general conditions, a balance sheet certified (audited) by an independent auditor shall be required from the year following the issuance of the licence for a registered trading or consignor licence.

 

The registered consignor does not have to keep separate records and provide data reports therefrom.

 

The registered trader has to keep separate electronic records on the seals received only in the case of excisable products that have to be sealed.

 

5. Ad hoc registered trader

 

Contrary to the general rules, the following person shall be entitled to an ad hoc registered trading licence:

 

6. Excise licence

 

In addition to the general conditions, the party submitting the licence application also has to comply with the following rules:

The person who certifies that it is importing lubricant oil or bringing it to Hungary from another Member State for the purposes of own use only may request the NTCA to grant exemption from the performance of the excise guarantee and storage capacity obligations.

 

The discounts applicable to the amount of the excise guarantee may not be validated in the case of risky taxpayers.

 

The submission of licence applications; the licensing procedure

 

Certain personal, guarantee, and material conditions have to be met for the pursuit of licensable activities. To meet these obligations, the documents and statements certifying the availability of these conditions have to be submitted together with the licence application.

 

As a general rule, the administration process takes place by electronic channels (one-stop client/company gateway) in the licensing procedure.

 

The licence application may be submitted electronically using form NAV_J31. The excise guarantee can be submitted using form NAV_J38 as a separate application.

 

In its proceedings, the NTCA examines whether the conditions for the issuance of the licence are met. It conducts on-site inspections to check whether the material conditions are met.

 

Attaching annexes

 

The documents and statements required for licensing the activity can be attached to the application in an electronic copy, with the exception of the following, the originals of which have to be submitted (in person or by mail):

 

The withdrawal and suspension of the licence

 

The NTCA examines whether the conditions taken into as at the issuance of the licensee or to be met following the issuance of the licence have been met, and the circumstances of the performance of the activity.

 

If the deficiencies established in the course of the check

 

During the term of the suspension, the licence holder may pursue its activities only with the restrictions and prohibitions specifically set.

 

In certain cases, the law provides separate provisions for a failure to pay public duties and on withdrawing the licence if a public debt is determined.

 

II. Excise registration

 

Excise regulations may require registration with the NTCA as a condition for pursuing certain activities.

 

Types

 

1. Mail order traders

 

The

– has to be registered if it intends to sell, in another Member State, an excisable product released for free circulation, involving direct transport or via an agent, and taking into account the restrictions specified by law for the product.

 

2. The tax representative of a mail order trader

 

A tax representative registered in Hungary has to be contracted to pursue mail order trading from another Member State to Hungary.

 

The tax representative shall be responsible for the tax liability and tax payment liabilities of the mail order trader incurred as a result of its transport activities. To fulfil these obligations, it shall have to provide an excise guarantee for the full amount of the resulting tax liability.

 

3. The production, sale, and ownership of equipment suitable for the production of excisable products

 

NTCA registration shall be required for the production, sale, and ownership of

 

However, the production, sale, and ownership of the following do not have to be registered:

 

Furthermore,

 

4. Registered user

 

NTCA registration shall be required for the use

of other controlled mineral oil and observed products,

 

5. The production, storage, and trade of dried and fermented tobacco

 

Registration is required for the growing of tobacco plants and for importing to Hungary, storing, selling, and exporting for sale dried tobacco and fermented tobacco.

 

The following must be registered:

 

Dried tobacco and fermented tobacco may be sold and transferred between registered parties obligated to register either directly or with the collaboration of a transporter or forwarding agent contracted with a written contract.

 

The tobacco importer and the tobacco trader are obligated to keep exact records of the goods traffic and to report goods movements per consignment to the NTCA no later than at the time of the given importing or tobacco trading transaction.

 

6. The operator of industrial natural gas filling stations

 

Registration is necessary for the operation of a natural gas filling station.

 

Registration may be requested by:

The industrial natural gas filling station is a place of use equipped with a certified dispenser and licensed storage tank where the operator provides LPG for non-road going vehicles only, for use within industrial facilities.

 

7. Small wine producers transporting to Member States

 

Registration is necessary with the NTCA if a small wine producer intends to transport still wine or sparkling wine made from self-produced still wine using bottled fermentation to another Member State as part of duty-suspension arrangements.

 

The small wine producer does not have to provide an excise guarantee for the bottle-fermented sparkling wine that it is able to produce and store. If the small wine producer that produces the bottle-fermented sparkling wine qualifies as a risky taxpayer, it shall be required to promptly request a simplified warehousekeeper licence.

 

Registration application and registration procedure

 

The registration procedure can be taken care of electronically.

 

The registration application can be submitted electronically using form NAV_J37, with the exception of the registration of the operator or lessee of commercial aircraft, who are to use form NAV_J21.

 

Foreign persons may decide, according to their discretion, to take care of their affairs in hard copy format, in line with which the foreign forwarding agent may also use form NAV_J21.

 

The NTCA shall inform the registered person of its decision via the one-stop client/company gateway.

 

The registered person shall report changes to its registered data within 15 days of the change, using the above forms.

 

Submission of annexes

 

The documents and statements depending on the requested activity also have to be submitted for the purposes of registration. The documents necessary for registration can be attached to the form as electronic copies, and certain statements can also be made using the form.

However, original copies of the following shall be attached (in person or via mail) to the application

 

The special rules for registration

                                

The special conditions contain the provisions that are additional to the general rules or that differ from those.

 

1. Mail order traders

 

Proof of a clean criminal record is necessary for the pursuit of mail order trading activities.

 

2. The tax representative of a mail order trader

 

The following person is entitled to register:

The excise guarantee can be submitted using form NAV_J38 as a separate application, to which the following shall be attached:

 

3. The production, sale, and ownership of equipment suitable for the production of excisable products

 

The type, volume or size, and the document containing a description of the main components of the equipment shall be attached to the registration application.

 

4. Registered user

 

A condition for registration is the certification of a clean criminal record. Furthermore, a description of the records planned to be kept on the quantities purchased and used also has to be attached.

For the purposes of registration and then each year by 30 November, the registered user shall report the quantity planned to be used per year and the purpose of such use. If it fails to meet this deadline, the NTCA shall delete it from the registry as at the last day of the target year.

 

If necessary, the NTCA may check the contents of the application as part of an on-the-spot check.

 

5. The production, storage, and trade of dried and fermented tobacco

 

The NTCA register those parties as producers who produce tobacco plants on the basis of valid, written production and sales agreements.

 

The produced tobacco shall be stored in the location specified in the application, separated by variety, in a manner that allows for quantitative assessment.

 

The NTCA shall delete the producer from the records upon the lapse of the contract.

 

Persons who produce non-tobacco products as part of economic activities using dried or fermented tobacco shall be required to describe the production process in the application.

 

If necessary, the NTCA may check the contents of the application as part of an on-the-spot check.

Changes to the registered data shall be reported to the NTCA within 5 days of the change.

The withdrawal and suspension of the licence

The competent NTCA directorate shall assess the licence application within 30 days or, in the case of ad hoc registered traders and registered consignors, within 15 days, which administrative time limit may be extended by no more than 30 days on one occasion; registration shall take place within 15 days.

forms NAV_J31; NAV_38; NAV_J21; NAV_J37 (available here: https://www.nav.gov.hu/nav/letoltesek/nyomtatvanykitolto_programok);

the other documents specified above

The procedure of first instance launched by submitting the application is duty-free.

The NTCA directorate with territorial jurisdiction shall assess the licence application.

The NTCA Large Taxpayer Directorate (KAVIG) has sole competence for proceeding in cases involving the excise taxes of foreign persons.

The NTCA Appellate Directorate (appeals shall be addressed to the Appellate Directorate but submitted to the Directorate proceeding in first instance).

If you have any additional questions, please do not hesitate to contact us at any of the contact points below.

Web:

Email:

Phone:

The NTCA Hotline and the ÜCC are available Monday to Thursday 8:30 am to 4:00 pm and Friday from 8:30 am to 1:30 pm.

*A client ID or Identification by Telephone with a Partial Code (RKTA) is required for using the system. If you do not have a client ID, you can request one using the TEL form, which you can submit to the NTCA in person or using the KÜNY repository. If you are using the ÜCC on someone else’s behalf, you also need to submit an EGYKE datasheet.

In person:

Find a customer service centre: https://nav.gov.hu/nav/ugyfelszolg

 

 

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Act LXVIII of 2016 on Excise Tax

Government Decree No 45/2016 of 29 November 2016 on the implementation of certain provisions of Act LXVIII of 2016 on Excise Tax

NAV