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ABT Treuhand Group
H-1037 Budapest Montevideo u. 3/A
Te l.: +36 1 430 -3400 Fax: +36 1 430 -3402
[email protected]
www.abt.hu
The Electronic Road Goods Transportation Control
System (EKAER) will be effective in Hungary from 1
January!
Dear Clients and Readers,
In order to curb VAT fraud, the Hungarian Parliament introduced the Electronic Road Goods
Transportation Control System (Elektronikus Közúti Árumozgásokat Ellenőrző Rendszer –
EKAER) or Trade Control, which will be in effect from 1 January 2015 and will enable the
actual movement of cargo to be tracked. The primary purpose of this system is to track the
movement of goods transported by motor vehicles.
Regarding its operation, it is important to emphasize that this system can be expected to

be connected to other databases (e.g. the electronic toll system),


be used to check CMR notes,
operate only within the borders of Hungary, however, it will have to be applied to
transport to and from foreign countries as well.
1. When will the EKAER system be implemented?
The ministerial decrees regarding the new system are still only proposals. In addition to that,
several trade associations pointed out some practical issues relating to implementation.
Therefore, legal consequences are expected to be postponed (according to recent information
penalties will not be levied before 31 January 2015).
The EKAER system is
https://ekaer.nav.gov.hu/
available
online
from
17
December
on
the
web-site:
2. Under what circumstances is the use of the EKAER system required?
When transporting in vehicles subject to road toll, the reporting obligation applies in the
following three cases:

importing goods from another member state of the European Union to Hungary for
acquisition or other purposes;

exporting goods from Hungary to another member state of the European Union for supply
or other purposes;

the first taxable domestic supply of those that are not end-users.
Some humanitarian and military vehicles are exempt from the obligation.
If the vehicle is not subject to road toll, the reporting obligation still applies with regard to
ABT Treuhand Group

the transport of risky foodstuffs, if the weight or the net value of a single delivery to a
single recipient exceeds 200 kg or HUF 250,000; and

the transport of other risky products, if the weight or the net value of a single delivery to a
single recipient exceeds 500 kg or HUF 1,000,000.
For more information about risky products, please read Section 6.
3. How can the reporting obligation be fulfilled?
The report must be made on the electronic platform of the EKAER system
(https://ekaer.nav.gov.hu/) which can be used effectively from 20 December. The movement of
the product will be tracked using the EKAER number provided by the platform. Each EKAER
number is valid for 15 days.
The EKAER number


identifies one consignment,



to the same client
which can consist of several products (forming a “product unit”)
transported by a specific vehicle (in a single journey),
to a given place of delivery.
4. Who is obliged to apply for an EKAER number?
If the cargo will be transported from Hungary to another member state of the European Union
or domestically transported, the consigner is obliged to report. By contrast, if the cargo will be
transported from another member state of the European Union to Hungary, the consignee has
the reporting obligation.
5. What information is required to be reported?
The EKAER system records the following data:





EKAER number

If risky products are distributed domestically, and the company legally using the property
where the products are to be delivered to (unloaded) is not the same as the consignee,
the information (company name, tax identification number) of said company.
The sender’s details
Address where loaded
The recipient’s details
Delivery address
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ABT Treuhand Group

For intra-Community acquisitions, the information (phone number, e-mail address) of the
company authorised to dispatch the goods.

Detailed information of the products attached to the EKAER number:


General designation, customs tariff number, gross weight, (for risky materials, hazard
label), product article number.
Reason for transporting the product by road:

supply, acquisition, contract work, other.

For intra-Community acquisition/supply of goods, the net price of the products; for of
other consignments, the net purchase price or the net cost of production.


The registration number of the transporting motor vehicle

If exporting to another EU member state, the date that loading commenced in Hungary.
If delivering to a Hungarian address, the date of arrival at the delivery (unloading)
address,
6. What are risky products and what must be considered when transporting
them?
One of the proposals contained two major groups of risky products, risky foodstuffs and other
risky products. Risky foodstuffs include different types of meat, flour, sugar and oil, while other
risky products include commodity items such as a wide range of clothing items and building
materials.
When transporting risky products, the reporting party is obliged to provide a security deposit.
The amount of the deposit is 15 percent of the net value of the goods transported with an
EKAER number in the previous 60 days at least.
The deposit must be provided to a deposit account, or via a financial guarantee.
The provisions regarding the security deposit – in accordance with the Rules of Taxation – can
only be applied from 31 January 2015 and so taxpayers are obliged to provide security from this
date onward at the earliest.
Taxpayers registered as qualified taxpayers or those that have been operating for at least two
years, are included in the database of public debt-free taxpayers and their tax identification
number has not been suspended are exempt from the security deposit.
7. What penalties can be imposed for failing to fulfill the reporting
obligation?



A default fine, which can reach up to 40 percent of the value of the product,
official sealing – sealing the package or the warehouse with an official stamp
seizure – the authorities may confiscate the transported products, except with regard to
perishable goods and livestock.
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ABT Treuhand Group
8. What are the apparent practical issues of the system?

Using the system will result in a significant amount of excess administrative obligations
and costs, which would put law-abiding companies at a competitive disadvantage
compared to foreign competitors.

If a Hungarian company imports cargo from another EU member state and does not
receive the necessary information in time, it will not be able to record the transport in the
EKAER system, which can lead to problems. Since the law will only apply in Hungary, it is
uncertain whether other EU member states will provide the necessary information
accurately and at the right time.
The newest amendment proposals to the EKAER system
The authorities and the parties involved are currently discussing the law and the decree, so new
developments on potential changes appear on a daily basis. Information suggests that the
provisions may contain several corrections, for example, in with regard to exemptions, the
range and rules of special cases and the information, deadline and adjustability of the reports.
The Parliament has finally accepted the following amendments of the rules:

If the EKAER report is faulty, incomplete or contains false information, the default fine will
be imposed (up to 40 percent of the value of the product).


Excise goods will not be exempted; EKAER will apply to them as well.
The addressee, the recipient, the consigner and the transporter will be obliged to report on
the following:

the name and amount of the consigned product

the name and registration number of the transporting vehicle

the place of delivery/unloading address for the product

the EKAER number

if the place of delivery is the office, agency or branch of a VAT-registered entity, the
legal title for usaging the property.

The registration number for the provision of an EKAER number must only be given when
the loading commences!

Registration number, weight and value can be adjusted when shipping to Hungary, but
only until the transport commences!

When transporting to other EU member states, the registration number, weight and value
may be modified at any time before the expiration of the EKAER number.
A report and EKAER number is not required for:

The transport of non-risky materials not exceeding 2,500 kg or HUF 2,000,000, even when
transported by a vehicle subject to road toll.

Transport of risky foodstuffs not exceeding 200 kg or the net value of HUF 250,000.
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ABT Treuhand Group

Other risky materials not exceeding 500 kg or HUF 1,000,000.
If the information above suggests that your company might be obliged to report in the EKAER
system then our colleagues will gladly answer any questions you may have.
Kind regards:
ABT Treuhand Csoport
Láng József
Kardos Péter
Lívia Gálfy
Partner
[email protected]
Head of Tax Division
[email protected]
Senior Tax Adviser
[email protected]
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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