Tax audits increasingly result in significant findings regarding the content of transfer pricing documentation. In many cases, it is the audit itself that first identifies a company’s obligation to maintain such records. Our extensive experience in transfer pricing allows us to prepare documentation for our clients quickly, precisely, and in full compliance with the law. We provide comprehensive support in determining the arm’s length price, as well as in compiling, reviewing, and updating documentation—whether it involves the Master File or the Local File.

The tax authority is never pleased with inaccurate tax returns or calculations—and neither are we if these errors only come to light during a tax audit. Precise tax calculation is crucial for tax compliance and, consequently, for effective business planning. As part of our services, we verify and document our clients’ Corporate Income Tax (CIT), innovation contribution, and local business tax calculations in a manner that is easily auditable by external parties. We ensure that both the tax returns and the underlying calculations fully comply with statutory regulations, and that they remain verifiable and transparent for third parties. Furthermore, we pay dedicated attention to the full utilization of CIT incentives, such as SME tax reliefs, tax designations, R&D tax credits, development tax incentives, and energy efficiency investment credits.

Anyone who has ever prepared a VAT return knows that it is a serious challenge—especially if systems and processes are inadequate or if the responsible parties lack comprehensive professional knowledge. For businesses with a seat or a permanent establishment in Hungary, fully outsourcing VAT return preparation to an experienced external partner can provide significant added value. The preparation process begins with data extraction from the accounting software, continues with the compilation of the supporting ledger and analytics, and concludes with the complete filing of the return. As part of this service, we can also perform the underlying bookkeeping upon request, completely lifting the burden of VAT administration off our clients’ shoulders.

During international operations, VAT registration in other EU Member States is often required. We assist in identifying VAT registration obligations and managing the entire registration process—both domestically and abroad—ensuring our clients’ compliant operations across various markets.

When a VAT registration obligation arises in Hungary—or in other EU Member States—it brings with it specific tax filing and payment obligations that must be fulfilled. In many cases, tasks related to tax categories other than VAT also emerge. Our experienced experts proactively assess these requirements and provide the necessary support to ensure our clients fully comply with all obligations associated with their registrations.

In practice, it often occurs that during a foreign purchase, the seller includes local VAT on the invoice, which the Hungarian buyer cannot include in their domestic VAT return. However, in most cases, this VAT paid abroad is recoverable. We undertake the full administration of VAT refunds charged in EU Member States and recognized third countries (with which Hungary has a reciprocal tax refund agreement) on behalf of our clients. Whether it involves conference participation, foreign services, or the procurement of goods, our expert team ensures a smooth and efficient recovery process.

Typically, taxes must be paid where an individual is a tax resident. However, if they work in another Member State, for example, the situation can change. Therefore, the taxation of international employees (expats) and secondments requires special attention and expert knowledge. We assist in determining tax residency and the proper taxation of income, and we manage the full administration of Hungarian tax obligations (registrations, calculations, tracking payments, preparing annual tax returns, etc.)—supporting both the employee and the employer.

In most cases, preparing and updating accounting policies ends up at the bottom of the accounting professionals’ to-do list. However, during an audit, the Tax Authority (NAV) is usually among the first to request these policies to understand the company’s internal practices. We prepare or update the mandatory regulations required as part of your accounting policy—including policies for inventory taking and management, valuation of assets and liabilities, internal cost accounting, and cash management—so you don’t have to wait for a rare “slow season” to address them.

Completing the online data provision to the Hungarian Tax Authority is essential for every business, but primarily, but not exclusively, foreign-developed invoicing systems often struggle to fully meet these requirements. If the submitted data is incomplete or incorrect, it can result in a default fine of up to one million forints per invoice.

K-X Consulting offers a unique, automated service to address this challenge: DataSmartFix

DataSmartFix is ​​a fast and efficient solution to remedy data provision deficiencies or errors in your invoicing system.

System functions:

• Data supplementation: Where the system did not send data, DataSmartFix sends the missing information.
• Error correction: If there are formal or content errors in the submitted data, our DataSmartFix system invalidates and resubmits this invoice data correctly.

With this solution, you can ensure that a temporarily or recurrently malfunctioning invoicing program does not hinder the completion of data reporting to NAV and that it is completed with the correct data.

Accurate and legally compliant invoicing is critical for VAT compliance. When special transactions, technical difficulties, or the limitations of your own invoicing system prevent your internal processes from correctly issuing invoices (or certain types of invoices), appointing an external party offers a highly effective alternative. 

K-X Consulting offers the ClearBill service for this situation. 

ClearBill is an automated framework system through which we fully take over the issuance of your invoices using our own legally compliant invoicing system. 

This structure allows us to manage and correct critical invoice data simply and

flexibly before submission, thereby ensuring 100% compliance. 

System Functions:

• Data Correction: Simple ability to correct critical data, such as the date of performance, the applied exchange rate, or the reference to a preceding invoice, guaranteeing VAT compliance. 
• Automation: Outsourced, automatic (including bulk) invoice issuance in the case of special or technical obstacles, ensuring business continuity. 
• International Assistance: Ideal, for example, for EU-established partners who hold a Hungarian VAT registration but face difficulties issuing invoices that comply with Hungarian legal requirements.