Appoint a fiscal representative in Hungaryand make sure to be 100% VAT compliant

Basic information
EU membership	2004
ISO code	HU
VAT introduced in Hungary	1988
VAT name in Hungary	Általános forgalmi adó
VAT ID format in Hungary	HU99999999
Territories with special status in Hungary	n/a
VAT rates in Hungary
Standard VAT rate	27 %
Reduced VAT rate (1)	18 %
Reduced VAT rate (2)	5 %
Super reduced VAT rate	n/a
VAT parking rate	n/a
Zero VAT rate	yes

Thresholds triggering VAT reporting obligations in Hungary
Intrastat threshold at introduction	250 000 000 HUF (+/- 641 000 EUR)
Intrastat threshold on dispatch	140 000 000 HUF (+/- 359 000 EUR)
Distance selling threshold	As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.

Reporting frequency in Hungary

Intrastat return	monthly depending on threshold
EC Sales List (ESL) return	monthly according to threshold/conditions, quarterly depending on threshold/conditions, occasional/other

VAT returns	monthly depending on threshold, quarterly depending on threshold/for certain services, annually depending on threshold/certain conditions
Reporting currency	HUF
VAT-related penalties in Hungary
Failure to file a VAT return	A fine up to 500,000 HUF (approx. 67,204 EUR) and at the discretion of the tax authorities.
Late payment of VAT	Interest on arrears equal to twice the Hungarian Central Bank rate, multiplied by 1/365 per day of delay.
Failure to report ESL/DEB	A fine up to 500,000 HUF (approx. 1406 EUR)
Useful links on VAT in Hungary
Tax Administration in Hungary	Tax authorities
Ministry of Finance in Hungary	Ministry of Finance
Check a VAT number in Hungary	http://ec.europa.eu/taxation_customs/vies/?locale=en

EU VAT Guide	EU VAT Guide

Need VAT assistance in Hungary? Contact us now.

Appointing a tax representative or agent is sometimes an obligation, always a convenience.

A foreign company carrying out transactions in Hungary subject to Hungarian VAT, may be required to appoint a tax representative. Established in Hungary, the fiscal representative will fulfill the company’s VAT obligations to the Hungarian tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.

Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.

Why entrust your VAT obligations in Hungary to a tax representative?

To secure your operations, lighten your company’s administrative burden, and control tax risks in Hungary.
Intra-Community and Hungarian VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.

Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.

For VAT compliance in Hungary, choose EASYTAX

Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Hungary, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.

Need a tax representative in Hungary? Contact us now.

During the 2000s, Hungary emerged as one of the most advanced countries from the former Eastern Bloc countries in terms of economic transition. Hungary joined the European Union on 1st May 2004, along with nine other countries. However, Hungary is not yet part of the Eurozone.

Hungarian economic activity is fairly diversified; machinery and transport equipment, industrial goods, manufactured products (pharmaceuticals, chemicals, metals and textiles) and agri-food products dominate exports.

VAT was introduced in Hungary on 1st January 1988; Hungarian VAT rules are governed by Act CXXVII of 2007, as well as by the European VAT Directives.

Any taxable person established in another EU Member State who undertakes the supply and import of goods, distance selling (subject to thresholds) and/or provides services on Hungarian territory will have to register for VAT in Hungary, except in cases where these supplies are subject to the reverse charge system in Hungary.
In order to determine your exact VAT obligations in Hungary, we recommend you seek advice from a tax representative.

The VAT rates currently in force in Hungary are as follows:

• Standard VAT rate: 27 %
• Reduced VAT rate (1): 18 %
• Reduced VAT rate (2): 5 %
• Super reduced VAT rate: n/a
• VAT parking rate: n/a
• Zero VAT rate yes

Need a tax representative in Hungary? Contact us now.