ÑÇÖÞÉ«ÇéÍø

Hungary has taken advantage of the option provided by the Principal VAT Directive to operate a flat rate scheme for farmers. The main features of the scheme are as follows:

1. Ìý

   •ÌýÌýÌýÌý The flat rate scheme for farmers can be used if the turnover from non-farming activities does not exceed the threshold for individual exemption. If turnover from non-farming activities exceeds the individual exemption threshold, the flat rate scheme for farmers can still be used if the annual revenue from agricultural activities (including flat rate compensation) exceeds the revenue from other activities (inclusive of VAT).

2. Ìý

   •ÌýÌýÌýÌý The scheme may be used by taxable persons who engage wholly or mostly in agricultural activities and are recognised as micro and autonomous enterprises, and who have established their business in Hungary for business purposes or, in the absence of such a place of business, have their permanent address or normally reside in Hungary.

3. Ìý

   The scheme only applies to businesses carrying out agricultural