Product fee. On 1 January 2008 significant changes to the environmental product fee legislation came into effect. Companies subject to the product fee have to register with the Customs Authority within 15 days from the date on which their first product fee payment obligation arises. Companies must have a VPID number (identification number issued by the Customs Authority) and a GLN number (Global Location Number) to be able to register.
As far as the tax return is concerned, the new rules eliminate the practice of annual tax returns beginning with the 2008 tax period. Companies have to assess their net product fee obligation monthly. Companies obliged to file product fee returns monthly according to the Act on the rules of taxation will have to submit the returns monthly, while companies obliged to file product fee returns quarterly or annually will have to submit returns quarterly.
The first deadline for filing tax returns for 2008 tax periods is 20 February 2008 for those with monthly obligations, and 20 April 2008 for those with quarterly obligations. Moreover, when determining whether their products are subject to the product fee companies have to use the new Combined Nomenclature tariff numbers effective on 1 January 2008. Companies have to submit a tax return even if they do not place products on the market or do not use them for their own purposes in a given month or quarter.
Because of the new role of the Customs Authority,  companies will not have to register with and report to the Ministry of Environment and Water Affairs nor to file product fee tax returns with the Tax Authority.
Local business tax. Due to the requirement to harmonize Hungarian regulations with EU legislation, the local business tax breaks and exemptions offered by municipal authorities were eliminated with effect from 31 December 2007.
Accordingly, from 1 January 2008, businesses that had previously been granted tax breaks or exemptions by municipal authorities will be required to pay local business tax. After 1 January 2008, only businesses with a tax base not exceeding HUF 2.5 million may be considered for local business tax breaks or exemptions under terms set out in decrees issued by the municipal authorities.