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VAT in Hungary

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In 1988, Hungary implemented Value Added Tax (VAT), known locally as Általános forgalmi adó (ÁFA). VAT is imposed in Hungary under the Hungarian Act CXXVII of 2007 on Value Added Tax (Általános forgalmi adóról), as modified (the “VAT Act”), which is based on the European Union (EU) VAT Directive 2006/112/EC (the “EU VAT Directive”). f”). Because EU law supersedes Hungarian law, the EU VAT Directive might overrule the Hungarian VAT Directive.  

Everything you need to know about VAT registration, returns, Tax Representation (if applicable), and your legal duties in Hungary is conveniently located right here!

VAT Guide Hungary

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Scope of Taxation

 

The following transactions are subject to VAT: 

 

  • The provision of products or services by taxable individuals in Hungary.
  • A taxable person’s intra-community purchase of goods in Hungary in exchange for products from another EU Member State. 
  • Services and products obtained by a Hungarian taxable person that is reverse charged.
  • Importation of commodities into Hungary, regardless of the importer’s legal status. VAT is either levied directly on the supplier or, under the reverse charge mechanism, on the recipient of the goods or services.

 A taxable transaction, according to Article 2 of the Hungarian VAT Act, encompasses all types of supply, including the sale and provision of goods or services for consideration inside Hungary, as well as intra-Community purchases and imports. 

Barter transactions are likewise subject to VAT and are classified as two separate taxable transactions for tax purposes. 

 

 Goods and services are considered equally regardless of whether they are provided:  

 

  • Under a contract; 
  • Under a legislative regulation; 
  • By a court judgment or decree (ruling) of authority; or 
  • By auction.

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Hungary –  General VAT information

 

National Legislation  Hungarian National Legislation 
VAT in local languages   Általános forgalmi adó (ÁFA) 
VAT number format   HU+8 digits 
HU12345678 
VAT rates  Standard 27%; Reduced 18%, 5% 
Zero-rated (0%) and exempt 
Frequency  Monthly, quarterly, and annual return 
Thresholds 
Registration   
Established  None 
Non-established  None 
Intra-Community acquisitions  EUR 10.000 
Intra-EU Distance sales and electronically supplied services to consumers (OSS)  EUR 10.000 
Recovery of VAT by non-established businesses  YES 
Compliance Returns and Supplementary Reports 
VAT Return   Monthly – 20th of the following month
Quarterly – 20th of the following quarter 
European Sales and Purchase Listing (VAT-EU)  20th day of the month after the end of the reporting period (month/quarter) to which it relates. 
Intrastat  15th of the following month 
Annual Return  25th February of the following tax year. 

 

Last Updated: 27/06/2022

Disclaimer

The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax

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