VAT in Hungary
If, as a foreign company, you intend to sell to or trade with Hungary, you must comply with Hungarian VAT regulations starting from your very first taxable sale. Hungary has the EU’s highest standard VAT rate at 27%, no registration threshold for foreign companies, and one of Europe’s most extensive real-time invoice reporting systems. Amounts are calculated in Hungarian forints (HUF), not euros.
VAT rates and key figures in Hungary
| Conditions | Details |
|---|---|
| Standard rate | 27 % (EU’s højeste standardsats). Lokalt kaldet ÁFA. |
| Reduced rates | 18% (including dairy and bakery products, hotel accommodation) and 5% (including medicines, medical equipment, books, district heating). |
| Zero rate (0%) | Including exports to countries outside the EU and VAT-exempt EU supplies (intra-Community). |
| Registration threshold | Foreign/non-established businesses: no threshold; registration required from the first VATable sale. Hungarian businesses: VAT exemption possible up to an annual turnover of HUF 18 million (approx. EUR 43,500). |
| Distance selling threshold (OSS) | €10,000 in total for cross-border B2C distance sales within the EU per calendar year. Above the threshold: charge Hungarian VAT, typically via OSS. |
| VAT number format | HU + 8 digits (e.g. HU12345678). |
| Reporting period | Monthly, quarterly, or annually, depending on the amount of VAT due. Deadline: the 20th of the month following the period. |
| Fiscal representative | Required for companies established outside the EU. EU companies can register directly without a representative. |
E-commerce and webshop for Hungary
If you sell goods to Hungarian consumers via an online store, the VAT treatment depends on the total volume of your EU distance sales. Below the common EU threshold of EUR 10,000 per year, you can invoice using the VAT rate of your home country. Above this threshold, you must charge Hungarian VAT on sales to Hungarian customers.
Here is One Stop Shop (OSS) The scheme typically offers this solution: you report sales to consumers in all EU countries via a single consolidated OSS return in your home country, instead of registering for VAT in each individual country. However, OSS only covers distance sales. If you have warehouse in Hungary, for example via Amazon FBA and fulfilment, you must still be registered for VAT locally in Hungary because the goods are physically located in the country. Read more about the rules for Danish e-commerce to the EU.
B2B trade and reverse charge
For cross-border sales between VAT-registered businesses, the reverse charge mechanism applies: the buyer accounts for the VAT in their own country, and you issue the invoice without VAT. Additionally, Hungary applies an extended domestic reverse charge in several areas, including parts of the construction sector and certain raw materials. As the rules are detailed and subject to change, always assess the specific transaction before determining the VAT treatment.
Real-time reporting: RTIR and Online Számla
Hungary has one of Europe’s most comprehensive systems for digital VAT monitoring. Via NAV’s "Online Számla" platform, invoice data must be reported to the authority in real time (Real-Time Invoice Reporting, RTIR) immediately after an invoice is issued. The scheme currently covers virtually all domestic B2B and B2C invoices, as well as EU supplies and exports, regardless of the amount.
Reporting must be carried out using the current XML format (version 3.0), and failure to report or the submission of erroneous data can result in fines. For a foreign company with a Hungarian VAT registration, this means that the invoicing system and reporting processes must be fully integrated with NAV from day one. This is where an experienced partner saves you both time and risk.
VAT refund in Hungary
If your company has incurred expenses in Hungary, you can often reclaim the VAT paid. This typically applies to expenses related to trade fairs, conferences, hotels, fuel, car rentals, taxis, and advertising, as well as purchases of goods and services. Refunds are processed either through the EU refund scheme or via a direct application, depending on your situation. Deadlines are strict, and documentation requirements must be met for the application to be approved.
How TIMEVAT helps you in Hungary
TIMEVAT is your specialist partner for international finance and export matters. We have many years of experience with VAT, registration, and reporting across the EU, acting as the VAT representative for Danish and Nordic companies abroad. We serve as your extended arm in dealings with the authorities and look after your business as if it were our own.
- Registration: We handle your Hungarian VAT registration with NAV, including fiscal representation where required.
- Filing and Compliance: We handle recurring VAT returns, EU sales lists, and real-time reporting via Online Számla.
- VAT Refund: We reclaim the VAT paid and ensure that documentation and deadlines are in order.
Are you getting started in Hungary?
Get a handle on registration, VAT, and real-time reporting right from the start. We speak the language and know the way to the Hungarian authorities.
Contact us todayFrequently asked questions about VAT in Hungary
What is the VAT rate in Hungary?
The standard VAT rate is 27%, the highest in the EU. In addition, there are reduced rates of 18% (applying to items such as certain foodstuffs and hotel accommodation) and 5% (applying to items such as medicines, medical equipment, and books). Exports outside the EU and intra-EU supplies are generally zero-rated.
Is there a registration threshold for foreign companies?
No. For businesses not established in Hungary, there is no threshold. As soon as you make a VAT-liable sale in Hungary, you must register for VAT. The exception is B2C distance sales, which can instead be accounted for via OSS.
Does my company need a fiscal representative in Hungary?
Companies established outside the EU must appoint a fiscal representative who is jointly and severally liable for VAT obligations to NAV. Companies from other EU countries can register directly without a representative.
What are RTIR and Online Számla?
It is Hungary’s real-time invoice reporting system. Invoice data must be transmitted electronically to the authority, NAV, via the Online Számla platform immediately after the invoice is issued. The scheme covers virtually all domestic B2B and B2C invoices, regardless of the amount.
When must VAT be reported in Hungary?
VAT is reported monthly, quarterly, or annually, depending on the amount of VAT due. As a general rule, the return and payment must be submitted electronically via NAV no later than the 20th of the month following the end of the period.
Can I get a refund of Hungarian VAT?
Yes. VAT on expenses such as trade fairs, hotels, fuel, car rentals, and purchases of goods and services can often be refunded, either through the EU refund scheme or by direct application. Deadlines are strict, and the documentation must be in order.
