Who may be required to register as a VAT payer?
Obtaining an EU VAT certificate and VAT registration applies to businesses that:
- import goods to Hungary,
- are carrying out a sale by way of intra-community delivery of goods or are purchasing goods (intra-community acquisition of goods),
- purchase and sell goods in Hungary,
- store goods in Hungary for resale,
- organise live events in Hungary.
Companies with a Hungarian VAT number must submit periodic returns detailing all taxable transactions. The deadline for filing the VAT return is the 20th of the month following the accounting month. As a rule, returns are filed quarterly, only taxpayers for whom the VAT due in the current or previous year exceeds HUF 1 million must file monthly. Late submission of the VAT return results in a penalty of a maximum of HUF 500,000 plus late payment interest.
Entities selling goods or services in Hungary must issue invoices that meet certain requirements. VAT invoices must contain the following information:
- identification number for VAT purposes,
- the amount to be taxed at the relevant VAT rate,
- the applicable VAT rate,
- output VAT broken down by rate,
- the total VAT amount,
- a reference to a specific provision of the EU VAT Directive for the type of transaction concerned,
- the recipient's VAT identification number.
The Hungarian Tax Administration (NAV) has introduced an electronic invoicing system and an electronic RTIR reporting system. E-reporting is the process of providing tax-relevant information to the tax administration in a predefined format after an invoice has been issued. The obligation applies to the disclosure of data on all invoices, as well as correction and cancellation invoices to which the provisions of the VAT Act apply. The disclosure must be made via the online invoicing system.
Currently, VAT rates in Hungary are:
- 27% – standard rate (highest in Europe)
- 18% – reduced rate, applies to certain products (e.g. certain dairy products, products made from cereals, flour and starches, and services providing access to music and dance events)
- 5% – reduced rate (certain pharmaceutical products, books, newspapers, heating services, certain live performances)
- 0% - Intra-Community and international transport
Services we provide in this country:
- VAT Registration
- VAT Settlements
- VAT Consulting