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VAT in Hungary

VAT Guide for EU countries within Europe in 2022

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 VAT refund. Hungarian

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 membership2004
ISO codeHU
VAT introduced in Hungary1988
Nom de la TVA in HungaryÁltalános forgalmi adó
VAT ID format in HungaryHU99999999
Territories with special status in Hungaryn/a

VAT rates in Hungary

Standard VAT rate27 %
Reduced VAT rate (1)18 %
Reduced VAT rate (2)5 %
Super reduced VAT raten/a
VAT parking raten/a
Zero VAT rateno

Thresholds triggering VAT reporting obligations in Hungary

Intrastat threshold at introduction170 000 000 HUF (+/- 476 000 EUR)
Intrastat threshold on dispatch100 000 000 HUF (+/- 280000 EUR)
Distance selling thresholdAs of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.

Reporting frequency in Hungary

Intrastat returnmonthly depending on threshold
EC Sales List (ESL) returnmonthly according to threshold/conditions, quarterly depending on threshold/conditions, occasional/other
VAT returnsmonthly depending on threshold, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions
Reporting currencyHUF

VAT-related penalties in Hungary

Failure to file a VAT returnA fine up to 500,000 HUF (approx. 67,204 EUR) and at the discretion of the tax authorities.
Late payment of VATInterest on arrears equal to twice the Hungarian Central Bank rate, multiplied by 1/365 per day of delay.
Failure to report ESL/DEBA fine up to 500,000 HUF (approx. 1406 EUR)

Useful links on VAT in Hungary

Tax Administration in HungaryTax authorities
Ministry of Finance in HungaryMinistry of Finance
Check a VAT number in Hungaryhttp://ec.europa.eu/taxation_customs/vies/?locale=en
EU VAT GuideEU 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.

Les taux de TVA actuellement en vigueur in Hungary sont les suivants:

  • 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 VAT registration and the filing of VAT returns in Hungary:

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

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 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: 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.

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 (+/- 476 000 EUR) HT/an)
    – Intrastat threshold on dispatch in Hungary (100 000 000 HUF (+/- 280000 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 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.


*This information is subject to change without notice.

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