A GUIDE TO VAT REFUNDS
FROM HUNGARY

Budapest, Hungary

How to Get a VAT Reclaim from Hungary

This page deals with refunds for cross-border transactions, it does not address VAT refunds where both vendor and customer are based in the same country. If you are travelling to or conducting business with companies in Hungary, you may be eligible to claim back Hungarian VAT. We have compiled everything you need to know on this page about VAT refund eligibility, Hungarian VAT rates, deadlines for claiming the VAT back, the common services with refundable VAT and the processes to recover Hungarian VAT.

Who can Claim VAT Refunds?

 

VAT Refunds for EU Claimants

If you are a VAT registered company in an EU Member State and have conducted cross border transactions in another Member State where you are not VAT registered then you are eligible to recover the VAT according to Articles 170-171a VAT Directive and following the full rules laid out in Directive 2008/9/EC . Here you will find a simplified summary of the vat refund procedures.

VAT Refunds for Non-EU Claimants

If you are a VAT registered company established outside of the EU and you are charged VAT on business activities conducted in an EU Member State where you are not VAT registered, then you are entitled to deduct the VAT through means of a refund from the country where the VAT was paid according to the 13th Directive (69/59/EEC).

Free VAT Refund Guide

Everything you need to know about recovering taxes from cross-border business activity and travel.

Hungary VAT: AFA

Standard rate    27%

Reduced rate     18%  – This applies to hotels

Reduced rate      5%   – This applies to Reduced rate restaurants meals, some foods

Deadlines for Claims Submission

For all companies in another EU member state or outside the European Union
September 30 (for all previous year)

Hungary VAT: AFA

Standard rate 27%

Reduced rate 18% – This applies to hotels

Reduced rate 5% – This applies to restaurants meals, some foods

Deadlines for Claims Submission

For all companies in another EU member state or outside the European Union
September 30 (for all previous year)

VAT Refund Information

 

Retrospective Claims

A company can claim back VAT from the previous VAT year, no extended deadline is available.

 

Rule of Reciprocity

An EU claimant can claim VAT from any other EU Member State and recover the VAT according to the Member State of Refund’s local VAT legislation.

For non-EU claimants and/or refunds from non-EU Member States, some countries will only grant a VAT refund if the country where your company is registered offers similar VAT refund arrangements, the so-called rule of reciprocity.

Hungary applies the Rule of Reciprocity, which means the Hungarian authorities can grant refunds to non-EU businesses if the country has an agreement with Hungary. Nowadays Hungary has such an agreement with Lichtenstein, Norway and Switzerland and with Serbia and Turkey from 1 January 2019.

 

Services where VAT Refund is Available

The common services with refundable VAT are:

  • Diesel fuel for various trucks
  • Short-term car rental
  • Road tolls, road user charges and parking for trucks over 3.5 tons
  • Lodging and accommodation and related services
  • Attending fairs, seminars, exhibitions and related costs
  • Hosting fairs, seminars, exhibitions and related costs
  • Diesel fuel for various trucks
  • Short-term car rental
  • Road tolls, road user charges and parking for trucks over 3.5 tons
  • Lodging and accommodation and related services
  • Attending fairs, seminars, exhibitions and related costs
  • Hosting fairs, seminars, exhibitions and related costs

Latest VAT Chart

Each countries rules and regulations vary. Our VAT chart gives you details about the recoverable VAT in the different countries.

VAT Refund Information

 

VAT Refund Process for EU Claimants

An electronic refund claim is submitted to the claimant’s national tax authority portal providing the following:

1. Claimants details
2. Summary of the refund request
3. Details of each invoice related to the VAT refund application
4. Scanned copies of all invoices and import documents where the taxable amount exceeds HUF 63,000 in the case of fuel and HUF 300,000 in the case of all other goods and services
5. Hungary may request other scanned invoices at a later evidence

 

VAT Refund Process for Non-EU Claimants

An application to the tax authority where the VAT was incurred shall be sent in original providing the following:

1. Claimants details, including bank account details for receipt of refunds
2. Summary of the refund request
3. Details of each invoice related to the VAT refund application
4. All original invoices related to the VAT refund must be included with the application
5. Power of Attorney to a Hungarian tax advisor
6. An original Certificate of VAT Status valid during the related refund period and not older than 1 year and confirming the business activity

 

Contact Us

For Additional information regarding the process and how we can assist,
please get in touch with us.
We have local offices to assist you further.

VAT Refund Information

 

VAT Refund Process for EU Claimants

An electronic refund claim is submitted to the claimant’s national tax authority portal providing the following:

1. Claimants details
2. Summary of the refund request
3. Details of each invoice related to the VAT refund application
4. Scanned copies of all invoices and import documents where the taxable amount exceeds HUF 63,000 in the case of fuel and HUF 300,000 in the case of all other goods and services
5. Hungary may request other scanned invoices at a later evidence

 

VAT Refund Process for Non-EU Claimants

An application to the tax authority where the VAT was incurred shall be sent in original providing the following:

1. Claimants details, including bank account details for receipt of refunds
2. Summary of the refund request
3. Details of each invoice related to the VAT refund application
4. All original invoices related to the VAT refund must be included with the application
5. Power of Attorney to a Hungarian tax advisor
6. An original Certificate of VAT Status valid during the related refund period and not older than 1 year and confirming the business activity

 

Contact Us

For Additional information regarding the process and how we can assist,
please get in touch with us.
We have local offices to assist you further.

Request a Call

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