The law does not explicitly state that a small taxpayer has to issue invoices for more than one client.

Although KATA law contains that if a contract has been signed between a small taxpayer and their principal, there is an employment relationship to be supposed between the parties until failing proof to the contrary. This is true If the total sum invoiced in a tax year exceeds 1 million HUF. In this case the principal is obliged to provide the taxpayer’s data to NAV (below data provider).

However, KATA law lists the circumstances in which the presumption of law should be considered overturned.

Let us see these conditions:

The presumption listed in section (2) shall be considered overturned if more than one of the following circumstances occurs:

 

a.) The small taxpayer did not perform the activity personally;

b.) The small taxpayer acquired at least 50 per cent of his income not from the data provider in the year;

c.) the data provider did not give instructions on how to perform the activity;

d.) The place where the activity is carried out is in the possession of the small taxpayer

e.) The tools and materials necessary to perform the activity were not made available to the small taxpayer by the data provider;

f.) The order of performing the activity is determined by the small taxpayer;

g.) The small taxpayer acquired at least 50 per cent of his income not from the data provider if the small taxpayer is an employee of the data provider.

 

The law clearly claims that if at least two of the conditions listed in points (a) to (g) are met, the tax authority should not qualify the relationship between the parties as employment even if the small taxpayer was previously an employee of the client.