The National Tax and Customs Administration (NAV) has classified Rail Cargo Hungaria (RCH) as a reliable taxpayer after examining the company's compliance with the Administration's standards. Such standard is among others that the company must not be under intensive supervision of tax authorities in the past five years; the authority has not initiated an execution proceeding against the company as well as the company was not subject of bankruptcy, liquidation, or involuntary deregistration. A total of 11 criteria had to be met for this classification.
The positive result of the status of the reliable taxpayer compared to the general status is among others that RCH gets the VAT refunds already after 45 days instead of 75, a significant contribution to the company's liquidity. In case of omission the authority does not impose a fine, but invites the company to fulfil the tax obligations. The tax or default penalty is only the half of the amount the Administration would normally impose. Another advantage is the length of the official controls must not exceed 180 days. This classification overall is another confirmation towards our customers that our company is a reliable partner.
The authority reviews quarterly the criteria necessary for the status of reliable taxpayer. RCH is doing its best to comply with them in the future as well.