The lapse of deductible VAT

Based on the Hungarian VAT act applicable from the 1^st of January 2016 (Act CXXVII of 2007 - on Value Added Tax 153/A.§ (1) a)) the amount of the payable VAT amount in a given tax period can be reduced by the taxable person with the deductible VAT amount created in the previous tax periods, however not earlier than within one calendar year preceding the given tax year’s calendar year. (Considering that the other conditions are also fulfilled.) This means that the deduction of VAT is limited in 2 years instead of the lapse period as it was based on prior years’ regulations. For example, if a company is obligated to file tax returns monthly, the deductible VAT of an incoming invoice that was performed in January 2016 need to be involved in the VAT return for December 2017 at the latest. Failing this, self-revision is the only method to validate the amount of the deductible VAT later.