Your professional business partner in Hungary
TIMEVAT help foreign companies in most industries with registration, reporting and compliance in Hungary. We are your VAT experts and consultants towards the Hungarian authorities.
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 Hungarian export VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for Hungarian export VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.
All businesses with any commercial activity in Hungary must therefore 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 (excluding domestic reverse charge)
- 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
- When total E-commerce sales of goods to consumers in EU, exceeds the threshold of € 10,000 companies are now eligible for signing up for (One-stop-shop) called the OSS scheme by SKAT.
If you already do business or plan to do business in Hungary, you should contact TIMEVAT immediately. We speak the language, have easy access to the Hungarian authorities and now the procedures. Please contact us for advise and assistance.
VAT Rates, Formats & Thresholds
| VAT Rates | VAT Designation | VAT Number Format | Distance Selling Threshold | Intrastat Threshold | ||
| 27% | (Standard) | AFA | HU12345678 | € 10,000 *) | HUF 250,000,000 | (Arrivals) |
| 5/18% | (Reduced) | HUF 140,000,000 | (Dispatches) |
*) As of 1st of July 2021 companies are eligible to sign up for (One-stop-shop) the OSS scheme by SKAT when the total annual EU sales exceeds the threshold of € 10,000.
VAT return periods
Monthly
Quarterly
Annual returns
No
EC Sales Lists frequency
Monthly or quarterly if VAT reporting is done quaterly
EC purchase lists
Yes
Other reporting requirements
National Recapitulative Statements
Reverse charge
Hungary applies an extended reverse charge to a wide range of goods and services. Please contact us if you would like details of how the extended reverse charge applies in Hungary.
Fiscal repræsentation
A business established in a country outside the EU must appoint a tax representative to register for VAT in Hungary.
