VAT in Hungary
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!
Selling in Hungary?
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.
Download the Hungarian VAT Guide
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