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VAT HUNGARY

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EU VAT registration - VAT in Hungary

VAT registration in Hungary

General Information:

Hungary is subject to the EU VAT system and is part of the EU’s single market economy.VAT directives are issued by the EU, which set out the rules for the VAT system to be adopted by the Member States. These directives take precedence over local regulations.
Hungarian VAT law is administered by the Ministry of National Economy and the national tax and customs authority. 

VAT registration in Hungary for companies:

Foreign companies can register in Hungary as a VAT payer without having to set up a local company; this is called non-resident VAT turnover. There is no VAT threshold in Hungary for the registration of non-resident business entities; VAT number must be entered before taxable supplies begin. The company may cancel the registration date in Hungary. If you know you need to register VAT in Hungary, do not hesitate and contact us  and we will help you.

When is VAT registration in Hungary required?

⇒ Import: import produktów z UE przez Węgry;
⇒ purchase and sale of products in Hungary;
⇒ Storage of goods in Hungary, using them for local customers, for resale;
⇒ ale of goods from Hungary to other EU countries;
⇒ Sending products between and another EU member state (intra-Community supplies);
⇒ Distance selling to private individuals in Hungary from another EU country, e.g. online sales. The distance selling threshold in Hungary is EUR 35,000 per year;
⇒ Organizing live events (conferences related to art and education).

Why Should You Choose Us?

We are a company with many years of experience, we have been operating on the market for 10+ years. We approach each client with great care.

Why Should You Choose Us?

We support each client individually.

What do we offer?

We offer you a number of solutions related to online sales. Thanks to the experience gained and foreign sales activities, we were able to expand the range of services we offer.

What do we offer?

System to support e-commerce activities, VAT registration in European countries, Amazon account reinstatement and more.

Companies must check the necessity for VAT registration

If the annual value of distance sales to Hungary is less than € 35,000, then VAT is charged on domestic sales subject to tax at the rate applicable in your country.
If you exceed the distance selling threshold, you should charge Hungarian VAT on sales subject to Hungarian VAT at a 27% VAT rate, instead of applying the rate in your country and including it in Hungary.
The registration date is the date when the total distance sales turnover threshold is exceeded. It is also the date from which you need to start adding Hungarian VAT to sales.
Companies with a Hungarian VAT number must submit periodic declarations detailing all taxable supplies (sales) and inputs (costs). VAT returns submitted by non-resident economic operators are usually submitted monthly by the 20th day of the month following the end of the reporting month.
Hungarian taxpayers must submit quarterly tax returns. However, taxpayers whose VAT due in a given tax year or in the second year before a given year exceeds HUF 1 million must submit it monthly. Taxpayers whose VAT due for the second year preceding a given year does not exceed HUF 250,000 must submit VAT returns annually if they have not received an EU VAT identification number. However, the taxpayer may choose to submit quarterly declarations.
The delayed submission of a VAT return results in a maximum fine of HUF 500,000 and interest for late payment. If the refund is made on time, but VAT is paid late, interest is charged for the delay. The interest rate used is twice the current basic rate of the Hungarian National Bank multiplied by 1/365 for each day late.
If the refund has been made but the VAT liability has not been reported, the penalty is 50% tax arrears plus interest for late payment. Default interest is not imposed if the taxpayer is able to justify the delay. Depending on the circumstances of the particular case, the delay penalty may be reduced or canceled by the tax authorities.

Hungarian fiscal representative

Although it is not necessary to appoint a tax representative in Hungary for EU companies wishing to register VAT in Hungary, it is necessary to have a representative in Hungary who can act on behalf of the company. Thanks to this, the Hungarian tax authority can, if necessary, communicate, conduct tax audits and check invoices and accounting books. Non-EU companies must appoint a tax representative.

Country

Hungary

Local VAT number

HU + 8 digits

Country Code

HU

Mail order threshold

35000 €

VAT declaration submission

- Monthly
- Quarterly
- Annually

Registration Waiting Time

Up to 2 months

Annual Declaration

Yes, until February 15th.

Standard VAT Rate

27%

Reduced VAT Rate

18%, 5%

Member state of the European Union

Yes, since 2004.