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Hungarian VAT – Rates & Registration

 

If a company not established in Hungary is providing ‘taxable supplies’ of goods or services in Hungary, it may have to obtain a non-resident VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

It is important that all businesses with any commercial activity in Hungary assess their compliance obligations and register prior to commencing taxable transactions if applicable.

What you need to know

There are various scenarios that would trigger an obligation to register for VAT in Hungary. Some of the most common examples are:

  • Importing goods into Hungary from outside the European Union
  • Buying and selling goods in Hungary
  • Selling goods from Hungary which are delivered to customers outside of Hungary (business or private customers)
  • Acquiring goods in Hungary from another EU country (Intra-community acquisitions)
  • Holding inventory in Hungary for sale, distribution or consignment
  • E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds
  • Organising events in Hungary where attendees or delegates must pay admission

If you are currently, or plan to conduct any of the above (or similar) transactions in Hungary, you should contact us immediately for a complimentary consultation.

Hungarian VAT Rates, Formats & Thresholds

VAT Rates VAT Number Format Distance Selling Threshold Intrastat Threshold
27% (Standard) HU12345678 HUF 8,800,000 HUF 170,000,000 (Arrivals)
5/18% (Reduced) HUF 100,000,000 (Dispatches)
VAT return periods

Monthly or quarterly depending on turnover

Annual returns

No

EC Sales Lists frequency

Monthly, quarterly or yearly.

EC purchase lists

Yes, combined with the EC Sales lists

Other reporting requirements

Yes (EKAER reporting)

Extended reverse charge

The extended reverse charge applies to certain supply of goods and to all services. Please contact us if you would like details of how the extended reverse charge applies in Hungary.

Fiscal Representation

A business established in a country outside the EU must appoint a tax representative to register for VAT in Hungary.

Contact us for a complimentary consultation.

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