Electronic Public Road Transportation Control System (EKAER) 1. Scope and legal effect of the EKAER system From 1 January 2015 a public road transportation control system will be introduced in Hungary, which applies · to the products transported by vehicles subject to road toll and · the transportation of risky products (EKAER system). The point of the system is that transportation of products by vehicles subject to road toll or transportation of risky products, the point of departure or the point of destination is located in Hungary, shall only take place, if the transportation has been electronically reported before its commencement to the tax authority and the tax authority took note of it. It is important to point out that the reporting obligation falls not on the carrier of the goods, but on the companies, which despatch or receive the goods. We call your kind attention that in the case if so called risky products are transported, then the scope of the system is extended also to the transportations taking place with vehicles not subject to toll payment obligation. It is to be expected that as risky products will be qualified certain foods, cloths, construction (building) materials, chemicals or similar products. If your company transports risky products or has risky products transported, then, please read also our information material on the risky products, in which we describe for you the detailed rules. The lorry, towing vehicle – including also the road tractor – of maximum permissible mass exceeding 3,5 tons, as well as the vehicle combination consisting of such a vehicle and the trailer or semi-trailer pulled by it shall qualify as vehicles subject to road toll.

1. Grant Thornton
Hungary NewsDecember 2014

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Dear Clients!
We strongly suggest you to read our
following information newsletter, if your
company
• makes goods be imported by public road
transportation to Hungary from other
Member State of the European Union,
• makes goods be transported on public
road from the territory of Hungary to
any other Member State of the
European Union,
Best regards
• sells goods transported on domestic
public road for other company, or
• purchases goods transported on
domestic public road from another
company.
Please, read carefully our information on
the risky goods, too, if according to the
above, your company transports or causes
be transported foods, cloths, construction
materials, chemicals or similar products,
because in this case stricter rules apply.
Content
Electronic Public Road Transportation Control
System (EKAER)
1. Scope and legal effect of the EKAER system
2. Those subject to the obligation of reporting
3. Exemption from the reporting obligation
4. Registration
5. Application for an EKAER number
6. Modification of the EKAER number
7. Sanctions
8. Specific rules applicable to the transportation of risky products
9. Application for the registration in the „no public debt” database
10. Other important information
Waltraud Körbler
IB Grant Thornton Consulting Kft.
E waltraud.koerbler@hu.gt.com

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1. Scope and legal effect of the EKAER
system
From 1 January 2015 a public road
transportation control system will be
introduced in Hungary, which applies
• to the products transported by vehicles
subject to road toll and
• the transportation of risky products
(EKAER system).
The point of the system is that transportation
of products by vehicles subject to road toll or
transportation of risky products, the point of
departure or the point of destination is
located in Hungary, shall only take place, if
the transportation has been electronically
reported before its commencement to the tax
authority and the tax authority took note of
it.
It is important to point out that the reporting
obligation falls not on the carrier of the
goods, but on the companies, which despatch
or receive the goods.
We call your kind attention that in the case if
so called risky products are transported, then
the scope of the system is extended also to
the transportations taking place with vehicles
not subject to toll payment obligation. It is to
be expected that as risky products will be
qualified certain foods, cloths, construction
(building) materials, chemicals or similar
products.
If your company transports risky products or
has risky products transported, then, please
read also our information material on the
risky products, in which we describe for you
the detailed rules.
The lorry, towing vehicle – including also the
road tractor – of maximum permissible mass
exceeding 3,5 tons, as well as the vehicle
combination consisting of such a vehicle and
the trailer or semi-trailer pulled by it shall
qualify as vehicles subject to road toll.
In the followings we present in details who
are concerned by the reporting obligation in
the individual transaction types.
2. Those subject to the obligation of
reporting
2.1. Product supplies to Hungary
In the case of supplies from another Member
State of the European Union to an address of
receipt located in the territory of Hungary,
the addressee shall be obliged to report to the
tax authority the data of the transportation
(see point 5) before the commencement of
the transportation. On the basis of the
report, the tax authority defines a so called
EKAER number, which the person obliged
to report shall have to hand over to the
carrier prior to the commencement of the
transportation.
Following the completion of the
transportation, the addressee or the recipient
of the goods is obliged to report to the tax
authority also the date and time of arrival of
the vehicle to the place of unloading not later
than on the next working day following the
arrival of the vehicle to the address of
unloading.
The reporting obligation applies not only to
transports carried out in the frame of
purchase transactions, but also to the
movement of own goods, for instance for the
purposes of toll manufacturing.

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2.2. Product supplies to the European Union
In the case of product supplies from a place
of despatch located in Hungary to a place of
receipt in other Member State of the
European Union, the sender is obliged to
report to the tax authority the data of the
transportation (point 5) before the
commencement of the transportation. On
the basis of the report, the tax authority
defines a so called EKAER number; the
entity subject to the reporting obligation is
obliged to provide the person performing or
organising the transportation with the
EKAER before the transportation is started.
The loader of the goods is obliged to report
the starting date and time of the loading at
the beginning of the placing of the goods
onto the vehicle.
We call your kind attention that the reporting
obligation applies not only to the
transportation taking place in the frame of
product sales, but also to the movement of
own products.
2.3. Domestic supplies involving domestic
transportation
In the case of supplies from a domestic
despatch address to a domestic address of
receipt only the first VAT taxable supply
shall be reported, but the product supplies
made for the end user (private individual)
are excluded from the scope of the EKAER
system.
In the case of domestic transportation, the
sender is obliged to report to the tax
authority the data of the transportation, not
later than until the beginning of the placing
of the goods on the vehicle.
Following the completion of the
transportation the addressee (recipient) or the
sender shall be obliged to report to the tax
authority also the time of arrival of the
vehicle to the place of unloading not later
than on the next working day following the
arrival of the vehicle to the address of
unloading.
3. Exemption from the reporting
obligation
The taxpayer shall be exempt from the
reporting obligation, if the mass of the non-
hazardous goods despatched by him or to be
delivered within one transportation for him
by the same vehicle subject to road toll does
not exceed 2500 kg or the value of the goods
without tax does not exceed 2 million forints.
4. Registration
The EKAER system can be used following a
registration with the tax authority, which is
possible via the web portal available from 20
December 2014. The web portal of the
EKAER system can be reached on the
internet at https://ekaer.nav.gov.hu.
Such a person is entitled to carry out the
EKÁER registration, which – under the rules
applicable to him/her – is entitled to
represent the entity obliged to report, i.e. the
taxpayer or his/her authorised legal
representative, or also such a person, who is
registered at the NAV as a permanent proxy.
The person falling in the circle of those
satisfying the above conditions, shall be
qualified from the point of view of EKAER
to be the primary user of the system, and as
such, following the registration, shall be
entitled to provide for or withdraw
authorisations from other users in the
EKAER system, as long as he/she meets
these conditions.

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4.1. The process of the registration of the primary
user
The taxpayer or his/her authorised
representative in the first step identifies
him/herself, i.e. he/she shall give his/her
particulars (personal data) in order to be
identified via the customer gate.
In the case the identification is successful, in
the next step the data relating to the entity
obliged to report shall be given. First, the
type of the entity as economic operator, its
tax number, and other data shall be given.
4.2. Reporting of additional, secondary users
Following a successful registration in
EKAER the primary user has the right to
take up, delete additional users on the
EKAER interface to those obliged to report
and administer their authorisations, or user
rights.
This menu item serves also for the purpose
of determining the scope of the
authorisations of the new users by the
primary user.
It is important that the authorisation of the
additional, secondary users may be
terminated only by the primary user.
5. Application for an EKAER number
The reporting relating to the individual
transportations is possible following the
EKAER registration, in the course of which
the tax authority determines the EKAER
number for the individual transportations.
Please, take into consideration that the
EKAER number shall be requested for each
transportation individually, or in the case if
several addressees belong to the same
transport, then the EKAER number is
required for each addressee individually.
In the application for the EKAER number
there shall be the following data reported:
• data of the sender (name, tax
identification code),
• address of uploading,
• data of the addressee (name, tax
identification code),
• address of unloading (receipt),
• in the case of public road transportation
of risky products to the domestic market,
the data (name, tax identification code) of
the company that in connection with the
given legal transaction lawfully is using the
real estate property located at the address
of unloading, provided that this company
is not identical with the addressee,
• regarding to the product(s) belonging to
the EKAER number:
o the general nomination thereof,
o their customs tariff number up to 4
digits, in case of risky products up
to 8 digits,
o the gross mass in kg belonging to
the individual product names
(items),
o in the case of transportation of
dangerous goods, the hazard label
number of the product,
o for the easier identification of the
product, the article number used by
the taxpayer (if this data is
available),
• the reason of the transportation of the
products on public road, which may be:
o product sales,
o product purchase,
o toll manufacturing,
o other purpose,
• the value belonging to the individual
product names (items), which
o in the case of purchase or sales of
goods, shall be the value of the
consideration without taxes,
o in the case of public road
transportation for other purposes,

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the purchase price without taxes, or
the purchase price without taxes of
a similar product, or in lack of such
price, the cost of manufacturing
without taxes,
• the registration number of the vehicle
used for the public road transportation of
the goods,
• in the case of transportation from another
Member State of the European Union to
the territory of Hungary, as well as in the
case of transportation from a domestic
place of despatch to a domestic place of
loading, the date and time of arrival of the
vehicle used for the transportation to the
place of unloading (receipt),
• in the case of transportation from the
territory of Hungary to another Member
State of the European Union, the date
and time of starting the loading of the
products on to the vehicle used for the
transportation of the goods.
In the investigation by the tax authority there
shall be the current, actual data shown under
the EKAER number. The party subject to
reporting obligation shall be responsible for
the veracity of the data.
The EKAER number shall be valid for 15
days from the date of its generation, i.e. the
transportation shall be completed within 15
days. We call your kind attention that the
registration number of the vehicle
performing the transportation shall also be
given for the validity of the EKAER number.
Pursuant to the rules, the EKAER number
may be requested also without the vehicle
registration number, however in this case the
report shall be completed also with the
registration number not later than prior to
the starting of the transportation.
6. Modification of the EKAER number
We call the attention that following the
generation of the EKAER number, the
reported data cannot be modified, except for
the following information:
• the gross mass expressed in kg for the
individual product names (items)
• the value for the individual product names
(items)
• the registration number of the vehicle
used for the transportation of the
products on public road
7. Sanctions
If in the course of its investigation the tax
authority finds that the taxpayer failed to
apply for an EKAER number in connection
with the transportation in question, or he
fulfilled his reporting obligation with
incorrect, false or incomplete data content,
then the transported goods shall be
considered as uncertified goods and the tax
authority may impose default penalty up to
40% of the value of the uncertified goods.
Non-reporting or erroneous reporting in the
EKAER system yet will not be sanctioned by
the tax authority till 31 January 2015.
8. Specific rules applicable to the
transportation of risky products
8.1. Value limits in the case of transportation by
vehicles not subject to road toll
According to the legislative rules, in the case
if risky products are transported, then in
respect of these products the taxpayer shall
be subject to the reporting (EKAER number
application) obligation also in the case, if the
transportation is made by vehicles that are
not subject to road toll. In the case of
transportation by vehicles not subject to road
toll the reporting obligation arises only when

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shipped in the frame of one transportation
for the same addressee
the mass of the risky foods exceeds 200 kg or
its value without taxes exceeds 250 thousand
forints, or
in the case of other risky products the mass
thereof exceeds 500 kg or the value thereof
without taxes exceeds 1 million forints.
8.2. Exemptions in the case of risky products
transported by vehicles subject to road toll
The taxpayer shall be exempt from the
reporting obligation, if despatched by him or
transported for him by a vehicle subject to
road toll under one transportation
• the mass of the transported risky foods
does not exceed 200 kg or the
consideration thereof without taxes does
not exceed 250 thousand forints, or
• in the case of other risky products, the
mass thereof does not exceed 500 kg or
the consideration thereof without taxes
does not exceed 1 million forints.
8.3. Circle of risky products
The Minister for the National Economy will
provide for the circle of the risky products in
a decree, which is available at the moment
only as a draft regulation.
According to the draft, the following product
groups shall belong to the risky products
category, an exact classification is possible
only on the basis of the customs tariff
numbers given in the draft decree.
Risky foods:
• meats, offal
• milk, cream
• egg
• honey
• vegetables
• fruits (fresh, chilled, frozen and dried)
• coffee
• cereals
• oil
• animal and vegetable fats and their
fractions
• sausages and similar products
• sugar and sugar variants
Other risky products:
• preparations for feeding of animals
• sand
• pebbles
• gravel
• crushed stone
• tar
• fertilizers
• lubricants
• organic solvents, dilution
• firewood
• garments
• footwear
8.4. FELIR
We would like to draw the attention of our
clients engaged in transportation of foods,
that in the case of products falling under the
regulatory competence of the food
supervisory authority (NÉBIH), the EKAER
system provides only those clients with an
EKAER number, who have a so called
FELIR (food supervisory information
system) identification code.
8.5. Obligation of lodging a security
In the case of intra-Community acquisition
of risky products, or bringing own goods to
Hungary, as well as in the case of the first
domestic taxable sales made not for end-user
(private individual), the party executing the
sales – according to the main rule – shall
provide a risk security for the tax authority.

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The size of the security shall continuously be
kept at a level of 15% of the value of
transports performed under an EKAER
number in the 60 days preceding the report.
The security shall be lodged the earliest until
31 January 2015.
The taxpayer shall be exempt from the
obligation of lodging a security provided that
the following cumulative conditions are met:
• the taxpayer is registered in the „no public
debt” database,
• it is functioning at least for 2 years,
• the taxpayer’s tax number is not
suspended.
9. Application for the registration in the
„no public debt” database
We wish to draw your attention that
registration of the taxpayer in the „no public
debt” database, is one of the conditions to be
met for the exemption from the obligation of
lodging security to be provided for in the
case of transportation of risky products.
The tax authority updates the „no public
debt” database on the 10th day of each
month, thus a company which is not
registered yet in the database may be included
in it at the earliest from 15 January 2015,
provided that the company submits its
application for the registration in the „no
public debt” database no later than until 31
December 2014.
In order to get exemption from the
obligation of lodging security, we
recommend you to apply for the registration
of your company (provided that it is not
included yet) in the „no public debt”
database until 31 December 2014 at the
latest. The application may be arranged by
submitting the so called KOMA form via the
customer gate.
10. Other important information
The EKAER web portal may be reached at
the internet address
https://ekaer.nav.gov.hu, where as expected
also the tax authority communications on
EKAER will be made available. It is to be
expected that until 20 December the tax
authority will issue detailed information in
connection with the EKAER system,
therefore we recommend you to monitor the
NAV’s website.
According to the information of NGM, the
ministerial decrees relating to EKAER
system are expected to appear this week. We
enclosed the draft version of the law to our
Hungarian Newsletter.
If we are your tax representative, we will keep
contact with you in the next few days in
connection with the process of the
registration.
Should you have any further question do not
hesitate to contact us.

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Contact
IB Grant Thornton Consulting Kft.
IB Grant Thornton Audit Kft.
Vámház krt.13.
H-1093 Budapest
T + 36 1 455 2000
F + 36 1 455 2040
M +36 30 992 29 79
E office@hu.gt.com
www.grantthornton.hu
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