VAT in Hungary

1. What is the VAT in Hungary?

Hungary has a variable VAT rate instead of a standard rate. Goods and services in Hungary are subject to a 27% VAT rate, while the rate for food and accommodation is 18%. VAT is also different for medicines, books and newspapers in Hungary, since the rate is only 5% for these types of acquisitions.

2. How can I get a VAT refund in Hungary?

A VAT refund can be claimed for a period of three months or one year. The minimum amount that can be refunded when the application is submitted for one year is 50 EUR. Some goods and services cannot be the subject of VAT refund claims. This category includes fuel, cars, yachts, motorcycles, boats, buildings, building materials, food and beverage, taxi service or 30% of phone costs. The application can be submitted electronically in Hungarian or in English. However, the condition is to be registered with the Central Document Office in Hungary in order to have access to this tax portal. Invoices may also be attached to the application.

3. How can I register for VAT in Hungary?

Registration for VAT in Hungary requires the presence of the founder or a representative authorised by a power of attorney. This person has to submit an application with the Hungarian tax authorities. The articles of association and a copy of the company’s certificate must also be submitted. Registration is compulsory for all companies that deal with commerce or services that are subject to VAT in Hungary. VAT number in Hungary consists of eight digits following the country code HU.

4. How does intra-community VAT work in Hungary?

Companies that perform intra-community acquisition between Hungary and other EU member states cannot file for VAT return annually. These companies must file for VAT return monthly or quarterly. If the latter option is chosen, the application cannot be submitted later than 20th of the month following the quarter.

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