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