EASYTAX, VAT fiscal representative
2024 Guide – VAT in Hungary

Appoint a fiscal representative in Hungaryand make sure to be 100% VAT compliant

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.

In this VAT guide, we have brought together the specific features of the Hungarian regulations, which interact with the harmonized framework within the European Union.presented in our guide to intra-Community VAT obligations.

With EASYTAX, be 100% VAT compliant, always.

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 250 000 000 HUF (+/- 641 000 EUR)
Intrastat threshold on dispatch 140 000 000 HUF (+/- 359 000 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 return monthly depending on threshold
EC Sales List (ESL) return 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 A fine up to 500,000 HUF (approx. 67,204 EUR) and at the discretion of the tax authorities.
Late payment of VAT Interest on arrears equal to twice the Hungarian Central Bank rate, multiplied by 1/365 per day of delay.
Failure to report ESL/DEB A fine up to 500,000 HUF (approx. 1406 EUR)

Useful links on VAT in Hungary

Tax Administration 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
Need VAT assistance in Hungary? Contact us now.

Appointing a tax representative or agent is sometimes an obligation, always a convenience.

A foreign company carrying out transactions in Hungary subject to Hungarian VAT, may be required to appoint a tax representative. Established in Hungary, the fiscal representative will fulfill the company’s VAT obligations to the Hungarian tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.

Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.

Why entrust your VAT obligations in Hungary to a tax representative?

To secure your operations, lighten your company’s administrative burden, and control tax risks in Hungary.
Intra-Community and Hungarian VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.

Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.

For VAT compliance in Hungary, choose EASYTAX

Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Hungary, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.

Need a tax representative in Hungary? Contact us now.

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 VAT rates currently in force 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

Need a tax representative in Hungary? Contact us now.

Do you need a VAT fiscal representative in Hungary? Certain operations may require VAT registration and the filing of VAT returns in Hungary:

To check whether your activities give rise to VAT obligations in Hungary, use our VAT simulator .

Need a VAT tax representative in Hungary? Contact us now.

When do e-sellers need to register for a VAT number in Hungary?

In Hungary , as in other European Union countries, e-sellers must register for VAT:

  • when the overall threshold for intra-Community distance selling of 10,000 euros is exceeded, and they have not opted to pay 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 rates in 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.

Find out more:

Need a VAT tax representative in Hungary? Contact us now.

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.

Hungarian VAT 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 VAT in Hungary are the following: Tax authorities, Ministry of Finance.

VAT identification is a relatively simpler formality than setting up a company, but beyond obtaining a VAT number in Hungary, you’ll need to complete and submit periodic declarations to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.

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

Companies with a VAT number in Hungarymust complete and file dVAT decl arations in Hungary detailing all taxable income (sales) and expenses (costs), at regular intervals: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: A fine up to 500,000 HUF (approx. 67,204 EUR) and at the discretion of the tax authorities.
  • Penalties for late payment of VAT in Hungary: Interest on arrears equal to twice the Hungarian Central Bank rate, multiplied by 1/365 per day of delay.

Need VAT assistance in Hungary? Contact us now.

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 introduction in Hungary (250 000 000 HUF (+/- 641 000 EUR) excl.VAT per annum)
    – Intrastat threshold on dispatch in Hungary (140 000 000 HUF (+/- 359 000 EUR) excl.VAT per annum).
    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.

Our tax representation services enable you to fulfill all your VAT obligations in all countries of the European Union and beyond. Contact us today.

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

There are three possible scenarios:

  • The company 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 electronic portal of the tax authorities 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.

Rely on our VAT recovery services in Europe. Contact us today.


*This information is subject to change without notice.

OTHER COUNTRY GUIDES

Need help?

VAT simulator

VAT SIMULATOR

Do you need a VAT number and a fiscal representative? in Hungary.
Find out with just a few clicks.

Expert

Contact
an expert

Are you growing your business
and looking to ensure
your VAT compliance in Hungaryquickly and easily?

VAT news

in Hungary

Easytax Contact
A SINGLE POINT OF CONTACT

For all European Union countries and some third countries.

For all European Union countries and some third countries. For all your VAT, Intrastat & ESL obligations, and your VAT recovery requests.

Newsletter

NEWSLETTER

Get the latest news on VAT regulations in Europe directly in your mailbox.

We respect your personal data