Stricter rules in the market for construction raw materials
As the virus situation eases, Hungary will introduce restrictions on trade in construction materials in order to restart the economy and encourage domestic construction investment. We summarize these measures in our newsletter.
Dear Clients! Dear Readers!
On July 8, 2021, three government decrees were issued that increase the administrative burden on companies trading in construction products.
Announcement of exports of strategic raw materials
Exports of the following products must be notified to the Ministry of Innovation and Technology from 02.08.2021: gravel, pebble stone, crushed stone, cement, mortar, concrete, plasterboard and a number of iron and steel products (the exact headings were published in the Appendix to the Regulation). The notification must be accompanied by the contract or accepted offer, the invoice, and the documents related to the delivery in Hungarian (in case of a document in a foreign language, an official translation will be required).
If the Ministry considers that the export constitutes a risk to the security of domestic supply, the Hungarian State may exercise its right of purchase or pre-emption under the Regulation. The goods purchased in this way can be sold by electronic auction to companies and persons carrying out infrastructure development or realizing social goals in Hungary. (A separate regulation will be prepared on the conditions of the right of purchase.)
The notification obligation shall not apply to transit cargo.
The EKAER (Electronic Trade and Transport Control System) obligation for certain construction products returns
With effect from 23.07.2021, the EKAER obligation extends beyond construction products that are currently subject to notification of other construction products. The range of products is similar, but not identical to the range of raw materials of strategic importance mentioned above: in addition to the products listed there, some copper and aluminium pipes, wires, fittings and miscellaneous wood products, including particle board, carpentry and joinery and prefabricated wooden buildings (the exact VTSZ (Combined Nomenclature) codes are also given in the Appendix to the Regulation).
The EKAER obligation applies to all three types of transactions, i.e.
- to Community procurement / import,
- to Community sales / exports and
- to sale to non-domestic end-users
However, no EKAER collateral is required for these products.
Introduction of the additional mining royalty
From 09.09.2021 companies whose main activity is quarrying, mining of gypsum, chalk, gravel, sand, clay and cement, lime or gypsum production and whose turnover is more than HUF 3 billion shall have to pay an additional mining royalty of 90% of the price difference for certain products (sand, gravel, cement) sold at prices higher than those specified in the decree.
The annuity must be declared monthly and paid by the 15th day following the month in question.
If you have any questions regarding the above topics, our staff will be at your disposal.
Kind regards:
ABT Treuhand Group
Date: 15. July 2021 | Topic: Business TaxationBusiness Taxation
The above summary is provided for information purposes only. We recommend that you consult our experts before making any decision based on this information.
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