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© tom_schmucker dreamstime.com General | April 09, 2015

Hungarian EKAER law aims to eliminate VAT fraud & corruption

A new goods delivery control system – EKAER (Electronic Public Road Trade Control System) – entered into force in Hungary at the beginning of 2015. The aim is to avoid/minimize VAT fraud in road transport.
To this end, the system checks both the movement of the goods transported within Hungary’s borders and goods moving in road transport between Hungary and other EU Member States. The “Track & Trace” system is intended to ensure that it is no longer possible in the future to transport goods into Hungary or within Hungary without reporting the transport to the tax authorities in advance. Since 1.3.2015, companies may only commission or carry out the transport of goods with an EKAER number. The reporting obligation applies to all goods transport involving lorries with a total weight of more than 3.5 tonnes. According to the FBDi, EU companies with a subsidiary/warehouse in Hungary or who often deliver to customers there should familiarize themselves with this regulation. The only means of bypassing the reporting obligation is if lorries <3.5 tonnes are used.

The EKAER number designates the goods unit (freight) which is
  • transported in the same vehicle
  • transported to a specific acceptance address
  • transported for one client (for the owner of the goods if the person’s own goods are transported or the consignee in the case of labour leasing (subcontractor))
  • transported in a single movement of the vehicle on the given route.

Several types of goods identified by a customs tariff number may belong to one EKAER number. In this context, the FBDi also points out that it is not possible to separate the goods into multiple shipments. Breaches are punishable with penalties of 40% of the value of the transported goods.

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