Recently, a Hungarian court accepted the right of a taxpayer to recover VAT on a bad debt where the VAT claim has already elapsed. The court made it clear that the statute of limitations does not count from the day of the original invoice but from the date when the debt became definitively irrecoverable. This decision may give hope to taxpayers in many pending cases.

The healthcare emergency situation has accelerated the digitisation of tasks and processes in a wide range of areas. Enforcement proceedings based on notarial deeds are no exception, where an electronic procedure became mandatory a few months ago. The only question is how long the signature itself will still need to be in writing.

Hungary's Jalsovszky law firm has announced that, going forward, its Capital Markets & Regulatory Group will operate as an independent practice.

To this day, the domestic legal system has remained silent on how contracts concluded by email should be treated. However, legislation recently adopted in relation to the COVID-19 pandemic explicitly allows communication via email between a company and its private-individual members. Could this be the first step towards a more comprehensive legal acceptance of emails?

While there were still as many as 60 types of tax in Hungary five years ago, this number was reduced to 54 by the end of last year. This process was interrupted by the recent introduction of crisis taxes. It remains to be seen whether this trend will now be reversed.

With in-store shopping often relegated to a secondary role, online forms of trading have come to the fore of late. Nowadays, merchants that don’t adopt web commerce solutions alongside or instead of their physical stores can find themselves at a distinct disadvantage in the market. It’s worth bearing in mind, however, that besides implementing various IT developments and having to organise home deliveries, running a webshop requires some major preparatory work in the legal area as well.

Everything that used to be simple and straightforward when concluding or completing M&A transactions poses major challenges to market participants in today’s crisis circumstances. New legal and technical solutions have been designed to overcome these difficulties, some of which are expected to remain with us even after the crisis.

Panicking amid the health crisis, company managers can easily feel pressured to take some “seemingly obvious” legal or business measures to resolve their situation. However, these measures often involve serious legal risks and should be approached with caution.

The impending economic crisis is expected to upset the financial position of many businesses. At these companies, the responsibilities of the company manager will also change: in a near-bankruptcy situation, the manager is obliged to take into account not only the interests of the company but those of the creditors as well. But what is simple on paper is not so straightforward in practice.

“These times are difficult for all governments and it’s very difficult to predict what will occur in the next few weeks, let alone more than that,” begins Pal Jalsovszky, Managing Partner of Jalsovszky Law in Budapest.

Jalsovszky has advised Szkaliczki Holding on the sale of Szkaliczki & Partners Plastic Processing Ltd to Nefab AB, a Swedish company that offers multi-material packaging solutions and logistics services. Oppenheim advised Nefab.

Due to the state of emergency related to the coronavirus outbreak, sooner or later many business owners, company managers, and chief legal or financial officers will be relieved of their more routine, day-to-day work. This is a time when it might be worthwhile to sort out the company’s legal or financial issues that you may not have had time for during your day-to-day operations. Here are five tips worth considering.

Noerr has advised the Doktor24 Group on a series of transactions, including raising private equity capital and acquiring two healthcare businesses in Hungary: Svabhegyi Gyermekgyogyintezet and Kastelypark Klinika. Dentons advised the co-investors on the funding, the Jalsovszky Law Firm advised the sellers of Svabhegyi Gyermekgyogyintezet, and Szabo Kelemen & Partners advised the sellers of Kastelypark Klinika.

The coronavirus outbreak is unfortunately having an impact on every aspect of our lives, and sets to affect a considerable number of businesses. For this reason we’ve summarised the five most important legal considerations that no business can afford to ignore at this time.

So far, it has been relatively easy for neighbours and other stakeholders to challenge the building permit of a major development project during the licensing process. This situation created major potential for extortion for these individuals. However, with the amendment of the building regulations, which came into effect on 1 March, this vulnerability would appear to have been eliminated.

Investment funds are generally considered a complex, collective, highly specialised form of investment. However, an amendment that came into force from January this year, will allow a much wider range of participants to set up investment funds and fund management companies. And these funds can present very favourable opportunities, whether for acquisition purposes or for holding private assets.

In Hungary the overall tax burden on employment income represents 44% of the total wage cost. Here are the most efficient ways to cut this tax bill.

While dozens of programmers, engineers and hairdressers continue to opt for KATA [the fixed-rate tax for enterprises categorised as “small taxpayers”] in Hungary, the tax is increasingly coming under fire from all sides. Apparently, the Hungarian Tax Authority (NAV) is stepping up its investigations into businesses who employ KATA payers, and at the same time rumours are also flying about a planned KATA tightening.