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.
|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|
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|
The current VAT rates in Hungary are as follows:
Certain transactions in Europe may require registering for VAT and filingVAT returns in Hungary:
In Hungary just like in other European Union countries, e-traders must register for VAT:
In addition to VAT registration, e-traders must:
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.
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:
In addition to VAT returns, companies may be required to provide the Hungarian authorities with Intrastat & EC Sales List returns:
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:
*This information is subject to change without notice.
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