When a Hungarian company receives a notice from the National Tax and Customs Administration (NAV), the first task is to identify the exact procedure, tax period, subject and deadlines. A structured response in the first days helps avoid mistakes later.
1. Identify the procedure
A tax audit and a compliance review have different purposes. Read the notice or authorisation carefully. Record the type of procedure, the taxes and periods concerned, and the communication channel.
2. Organise the first response
- Preserve the notice and proof of delivery.
- Appoint one contact to coordinate management, accounting and legal counsel.
- List the requested records and where the originals are held.
- Preserve invoices, contracts, performance records and electronic correspondence unchanged.
3. Review the evidence
Compare accounting entries with contracts, actual performance and payment flows. Identify discrepancies factually. Documents must not be retrospectively altered or destroyed. Clarify any unclear request or deadline through the proper channel.
4. Statements and the audit report
Answers should be accurate and based on checked records. Separate confirmed facts from assumptions. When the audit report arrives, compare its findings and cited evidence with the company's documents. Check the applicable opportunity and deadline for observations in the actual case file.
5. When to consult counsel
Legal advice can be useful before the first substantive statement, especially where significant amounts, disputed invoice chains or parallel proceedings are involved. See the tax law practice page. If criminal measures are also involved, read the separate budget fraud guide.
Does an audit notice mean tax has already been assessed?
No. The start of a procedure is different from a final finding. First establish its scope, then address the individual findings using evidence.
Sources: Hungarian Act CLI of 2017; NAV audit information.
This article is general information, not case-specific legal advice. Laws and procedural deadlines may change.