- This guide provides information on the Value Added Tax (VAT) system in Hungary for businesses with customers in the country. The standard VAT rate in Hungary is 27%, with some goods and services exempt from VAT, such as financial services. There are also reduced rates of 18% and 5%, as well as a zero rate for certain transactions.
- There is no VAT registration threshold for domestic or non-established sellers in Hungary, but there is a threshold of EUR 10,000 (net) per calendar year for intra-EU distance selling of goods and B2C telecommunications, broadcasting & electronic services (TBE). Non-resident, non-EU based suppliers of Electronically Supplied Services (ESS) have no registration threshold.
- Individuals have a 10-character Tax Identification Number, while businesses have an 11-character VAT number. The EU Format for businesses is country code HU + 8-digit core number.
- The harmonized EU VAT rules apply to electronically supplied services (ESS) in Hungary. For B2B supplies of such services, the general place of supply rule for services should be taken into consideration. For B2C supplies, the EU ESS rules should apply to foreign companies selling to Hungarian consumers.
- Under the EU’s B2C ESS rules, until the sales value reaches EUR 10,000 (including distance sales of goods), the seller can charge VAT where it is resident. Once the sales exceed the threshold, the seller should register for VAT in Hungary or account for the VAT under the EU’s One Stop Shop (OSS) regime.
- Marketplace & platform operators in Hungary must follow harmonized EU VAT rules. A marketplace is deemed to have received and supplied the goods themselves, with the transaction split into two supplies: a supply from the underlying supplier to the marketplace (deemed B2B supply) and a supply from the marketplace to the final customer (deemed B2C supply).
Source Fonoa
See also
Click on the logo to visit the website
