HUNGARY

HUNGARY (AFA)

Hungary being an EU member state falls under the EU VAT regime. Member states must adopt EU VAT Directives into their own legislation.

Standard VAT Rate: 27%

Reduced VAT Rate: 5%, 18%

Registration Threshold Distance Selling: 8,800,000 HUF

EU VAT number format: HU99999999

Registration Threshold

Resident - There is no registration threshold  
Non resident - There is no registration threshold   
IC Acquisitions -EUR 10,000 

VAT Registration

In the case of a company registered in another EU member state making sales to Hungarian non-taxable customers, the distance sales threshold is EUR 35,000. Thus, if its total net sales to these customers in Hungary exceeds this threshold in the current tax year and also in the previous tax year , the foreign company must register for Hungarian VAT.

VAT Compliance

Detailed rules regulate reporting requirements of Hungarian transactions for Value Added Tax purposes. These include: invoice requirements, timeliness for an invoice to be issued, invoice and credit notes corrections rules, foreign currency reporting requirements and exchange rate sources, correction of previously submitted returns and accounting records that must be maintained for VAT purposes. As of 1 January 2016 there will be a new Hungarian regulation on invoicing, this new invoicing software will have to contain a new modification which allows data to be exported by the Hungarian tax authority. This will also let the tax authority export reports of voices at any given time.

VAT Returns 

VAT returns can be made monthly, quarterly or yearly.
The time limit for filing the VAT return is the 20th day of the month following the period.

Yearly VAT return needs to be submitted by the 15th February following the year concerned.

Intrastat and EC Sales Lists

The Intrastat discloses details of movements of goods between Member States which take place for commercial reasons, recording the movement whenever goods enter the territory of Hungary from other Member States or leave it to other Member States.
Declaration must be filed monthly once the annual threshold is exceeded.

Intrastat declarations can be submitted in paper or electronic format. The due date for submission is the 15th of the following month. E.g. for the January period, declarations must be submitted by 15 February.