In fact, there was no trace of cryptocurrency, so the investment and related services could not take place.
A company wanted to reclaim HUF 25 million in VAT after transactions that did not take place, but it was filtered out during an inspection by the National Tax and Customs Administration (NAV); the tax authority fined the cryptocurrency company 65 million forints, the tax office announced on Friday.
The company managing cryptocurrency portfolios also included VAT on unpaid IT consulting invoices in the deductible tax, while the consulting company did not declare it. NAV wrapped up the case by inspecting both companies, one of them was already on the list of risky enterprises – the office says in its statement.
It was indicated: in principle, the consulting company managed cryptocurrency portfolios, managing its clients’ crypto investments in a single account. After the customers have signed a contract, the company the amount was transferred to his cryptocurrency wallet, which was included in the stock exchange as part of the portfolio. The system was monitored by an alleged robot, but the market processes were analyzed by human intervention. During the inspection, the employees of the company could not confirm the existence of the robot to the inspectors of the NAV, and the bank account statements also refuted the story: there was no trace of cryptocurrency, so the investment and related services could not have taken place – the tax office pointed out.
The consulting firm did not submit the documents required for the inspection, nor the VAT declaration, to the NAV. According to the statement, they claimed that sixty percent of their fees were waived in order to reduce the VAT payable. The NAV established: the invoices of the consulting company are not authentic, the economic events included in them are untrue, so their VAT cannot be deducted by the company “requiring” the apparent expert advice. By the way, this company had a risky rating, so it was hit with a tax fine of 260 percent after the unauthorized reclaim of more than HUF 25 million, they said.