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VAT in Hungary

VAT Guide for EU countries within Europe

VAT in Hungary

Whether you’re a European or non-European company, establishing certain activities in Hungary may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Hungary.

If you deal with companies in Hungary, you may be able to claim a Hungarian VAT refund.

Here you can find the specifics of VAT regulations in Hungary, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.

Basic information

EU membership 2004
ISO code HU
VAT introduced in Hungary 1988
VAT name in Hungary Általános forgalmi adó
VAT ID format in Hungary HU99999999
Territories with special status in Hungary n/a

VAT rates in Hungary

Standard VAT rate 27 %
Reduced VAT rate (1) 18 %
Reduced VAT rate (2) 5 %
Super reduced VAT rate n/a
VAT parking rate n/a
Zero VAT rate no

Thresholds triggering VAT reporting obligations in Hungary

Intrastat threshold at introduction 170 000 000 HUF (+/- 515 152 EUR)
Intrastat threshold on dispatch 100 000 000 HUF (+/- 303 030 EUR)
Distance selling threshold As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.

Reporting frequency in Hungary

Intrastat declaration monthly depending on threshold
EC Sales List (ESL) declaration monthly according to threshold/conditions, quarterly depending on threshold/conditions, occasional/other
VAT returns monthly depending on threshold, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions
Reporting currency HUF

VAT-related penalties in Hungary

Failure to file a VAT return Penalty of up to HUF 500,000 (approx. EUR 1,575) per return.
Late payment of VAT Interest on arrears equal to double the Hungarian Central Bank rate, multiplied by 1/365 per day overdue. In the event of a tax audit, a penalty of up to 50% of the VAT due, and interest for late payment.
Failure to report ESL/DEB Penalty of up to HUF 2,000,000 (approx. EUR 6,300) per return.

Useful links on VAT in Hungary

Tax Authorities in Hungary Tax authorities
Ministry of Finance in Hungary Ministry of Finance
Check a VAT number in Hungary http://ec.europa.eu/taxation_customs/vies/?locale=en
EU VAT Guide EU VAT Guide
During the 2000s, Hungary emerged as one of the most advanced countries from the former Eastern Bloc countries in terms of economic transition. Hungary joined the European Union on 1st May 2004, along with nine other countries. However, Hungary is not yet part of the Eurozone.

Hungarian economic activity is fairly diversified; machinery and transport equipment, industrial goods, manufactured products (pharmaceuticals, chemicals, metals and textiles) and agri-food products dominate exports.

VAT was introduced in Hungary on 1st January 1988; Hungarian VAT rules are governed by Act CXXVII of 2007, as well as by the European VAT Directives.

Any taxable person established in another EU Member State who undertakes the supply and import of goods, distance selling (subject to thresholds) and/or provides services on Hungarian territory will have to register for VAT in Hungary, except in cases where these supplies are subject to the reverse charge system in Hungary.
In order to determine your exact VAT obligations in Hungary, we recommend you seek advice from a tax representative.

The current VAT rates in Hungary are as follows:

  • Standard VAT rate: 27 %
  • Reduced VAT rate (1): 18 %
  • Reduced VAT rate (2): 5 %
  • Super reduced VAT rate: n/a
  • VAT parking rate: n/a
  • Zero VAT rate no

Certain transactions in Europe may require registering for VAT and filingVAT returns in Hungary:

To check if your activities involve VAT obligations in Hungary, use our VAT simulator or contact us.

When do e-traders need to register for VAT in Hungary?

In Hungary just like in other European Union countries, e-traders must register for VAT:

  • when the overall threshold of EUR 10,000 for Intra-Community distance selling is exceeded and they have not opted to pay the VAT in Hungary via the One Stop Shop,
  • or when they hold a stock of goods in Hungary and must report the stock supply transactions.

What are the VAT obligations for e-traders in Hungary ?

In addition to VAT registration, e-traders must:

  • Apply the defined VAT ratesin Hungary: standard rate (27 %), reduced rates 1 and 2 (18 % and 5 %).
  • Declare stock transfers between marketplaces‘ storage platforms, as well as the supply translactions for these stocks.
  • File periodic returns (VAT returns, intrastat, ESL), to ensure their VAT compliance in Hungary.

> Learn more about the VAT & e-commerce regulations and the VAT regime for logistics platforms in Europe.

Why identify yourself to VAT in Hungary?

You may need a VAT number in Hungary to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification. To check if your activities require VAT identification in Hungary, use our VAT simulator or contact us.

VAT Hungarian is named Általános forgalmi adóand the VAT numbers in Hungary have the following structure: HU99999999.

How do I get a VAT number in Hungary?

The administrations in charge of in Hungary VAT are the following: Tax authorities, Ministry of Finance.

Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Hungaryyou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.

Companies with a VAT number in Hungary must complete and submit VAT returns in Hungary detailing all taxable income (sales) and expenses (costs), with the following periodicity: monthly depending on threshold, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions.

Failure to comply with the deadlines imposed by the Hungarian authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.

These penalties are defined as follows in Hungary:

  • Penalties for failure to file a VAT return in Hungary: Penalty of up to HUF 500,000 (approx. EUR 1,575) per return.
  • Penalties for late payment of VAT in Hungary: Interest on arrears equal to double the Hungarian Central Bank rate, multiplied by 1/365 per day overdue. In the event of a tax audit, a penalty of up to 50% of the VAT due, and interest for late payment.

In addition to VAT returns, companies may be required to provide the Hungarian authorities with Intrastat & EC Sales List returns:

  • Intrastat returns enable the Hungarian authorities to compile foreign trade statistics.
    Companies must file these Intrastat returns as soon their turnover reaches the threshold.
    Intrastat threshold at introductio n in Hungary (170 000 000 HUF (+/- 515 152 EUR) HT/an)
    – Intrastat threshold on dispatch in Hungary (100 000 000 HUF (+/- 303 030 EUR) HT/an).
    Failure to comply with the deadlines imposed by the Hungarian authorities for the filing of these Intrastat returns wil incur a penalty payment for the company.
  • The sales summary returns (EC Sales List or ESL) or purchases (EC Purchases List or EPL) in Hungary are for tax purposes.
    Failure to comply with the deadlines imposed by the Hungarian authorities for the filing of these ESL returns wil incur a penalty payment for the company.

In principle, a non-resident company in Hungary can recover all or part of the VAT incurred on its expenses.

There are three different scenarios:

  • The company, whether it is established within the European Union or not, is already registered for VAT in Hungary, or is obliged to register for VAT in Hungary. In this case, it must apply for a VAT refund via the periodic VAT return filed in Hungary, according to a periodicity:monthly depending on threshold, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions.
  • The company is established within the European Union, is not registered for VAT in Hungary and is not required to do so. In this case, a VAT refund should be requested via the tax authorities’ electronic portal in the country where the company is established.
  • The company is not established within the European Union and is not required to register for VAT in Hungary. In this case, they must use the services of a fiscal representative to carry out what is required by the Hungarian authorities on their behalf.
    > Learn more about our VAT recovery services.


*This information is subject to change without notice.

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