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Hungary

 

News & Tips

New real-time reporting

As from 01/07/2017, foreign companies VAT registered in Hungary will be required to report their sales invoices data in real-time for all B2B sales in which at least HUF 100.000 (+/- € 300) VAT is charged. The Hungarian VAT authorities have not yet published the details of the exact real time reporting process and the specification of the real time communication. Under one of the scenarios currently being discussed, foreign companies will need to upload their draft invoice data first, wait for approval of the Tax Authority servers and then issue the invoice with the received verification ID noted. Failure to comply with this new regulation may result in a penalty up to HUF 500.000 (+/- € 1.700).


Local reverse charge on specific goods

As from 01/01/2015, a new reverse charge mechanism will be applicable for domestic sales of iron and steel.


Filing EC Sales Listing – Periodicity

The recapitulative statement [ESL] must be drawn up for each calendar month. Taxpayers submitting quarterly VAT returns can file the statement on a quarterly basis provided the intra-community supply and/or [new rule as from 01/01/2015] acquisition of goods do not exceed € 50,000 in the current calendar year and over the past four calendar quarters.

More VAT News & Tips in Hungary


DOING BUSINESS IN HUNGARY [HU] - VAT GUIDE

 

General

VAT Directive

Hungary

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

Hungarian VAT numbers have 10 characters [HU + 8 digits].

 

What is the local name of the tax?

 

Altalanos forgalmi ado [AFA]

 

VAT rate

VAT Directive

Hungary

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Hungary applies a standard VAT rate of 27% and two reduced VAT rates: 5% and 18%.

 

See VAT rates applied in the EU.  

VAT return

VAT Directive

Hungary

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those periods do not exceed one year. 

Monthly/Quarterly/Yearly

Your company has to report its VAT position by filing periodical VAT returns either every month, every quarter or every year under specific conditions.

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Periodical VAT returns must be submitted by electronic means to Hungarian VAT authorities before the 20th day of the month [20 of N+1] following the tax period [month/quarter], and annual returns by February 25th of the year following the reference tax year.

Statement

VAT Directive

Hungary

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

No summarizing annual VAT return is required.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative statement [ESL] must be drawn up for each calendar month.

Taxpayers filing quarterly VAT returns can file the statement on a quarterly basis provided the intra-Community supply of goods and/or [new rule as from 01/01/2015] acquisition of goods do not exceed € 50.000  in the current calendar year and the past four calendar quarters.  

ESL must be filed no later than the 20th day of the month after the end of the reporting period [month/quarter] to which it relates.

Payment

VAT Directive

Hungary

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by filing deadline for the VAT return - no later than the 20th day of the month after the end of the tax period [month/quarter/year] to which it relates.

Are interim payments required?

Member States may require interim payment to be made.

Interim payments are not required.

VAT refund

VAT Directive

Hungary

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

A VAT credit is in principle automatically carried forward to the next tax period, unless a tax refund has been applied for.

Special measures for foreign companies

VAT Directive

Hungary

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is not applicable to major supplies of goods [with the exception for supplies of goods with installation and for other specific items] carried out by a foreign supplier not established in Hungary.

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider.

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is only applicable to some supplies of services [passenger transportation, cultural services, rental of vehicles and catering services] carried out by a taxpayer not established in Hungary [whether he is VAT registered or not in Hungary] provided the customer is a taxable person established in Hungary.

Have simplification measures been taken to avoid registration of the foreing company for the goods held on consignment in the country?

 

No

Do special arrangements apply to "call-off-stock"?

 

Yes [under conditions]

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

No

 

VAT on import

VAT Directive

Hungary

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

Yes

Hungary has introduced VAT warehousing regime applicable under specific conditions.

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

Yes

Postponed accounting via the VAT return is possible. 

 

Miscellaneous

VAT Directive

Hungary

Intrastat Threshold  

Dispatches: HUF 100.000.000

Arrivals : HUF 170.000.000

Distance Sales - Threshold  

 € 35.000

See various thresholds applied in the EU

 

Ministry of Finance   website

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