How do I reclaim VAT in Hungary?

December 8, 2016

VAT rates in Hungary

VAT, or Value Added Tax is a consumption based tax. It is added to the net price of the product sold. In Hungary, the standard rate is 27%. Some lower rates apply to certain products or services (5% on specific medicines and medical devices, performing arts activities, books, magazines, newspapers and sheet music, as well as live hogs and half hogs, cattle, sheep and goats; 18% on dairy products, bread, district heating and commercial accommodation services).

How much do I get back?

When you issue an invoice with your Hungarian company, you include the VAT on the invoice. Your buyer pays the VAT to you along with the net price. You then have to pay the VAT to the Tax Authority (VAT payable). Since you automatically get a VAT number with your Hungarian company, you can deduct the VAT amount you paid on goods or services connected to your company’s activity (VAT reclaimable). Note that you cannot reclaim VAT for certain expenses (fuel or maintenance for a passenger car) or just reclaim part of the expenses (e. g., only 30% of the phone bill is reclaimable).

When do I file the VAT report?

Your accountants file a monthly or quarterly VAT report on your behalf. The frequency of VAT reports depends on your trade volume or activity. The report is filed by the 20th of the month following the relevant month or quarter. If your VAT reclaimable is more than your VAT payable, you can reclaim the difference in the VAT amount from the Tax Authority. The limit for reclaims is 250 000 HUF for monthly taxpayers, and 1 million HUF for quarterly payers.

When do I get the VAT back?

The Tax Authority usually transfers the reclaimable VAT within 75 days of your accountants submitting the claim. You can also request a payment within 45 days if all purchase invoices of the relevant period were duly paid by the filing date of the return.



Contact us

  • Privacy Policy
    In order to contact you and provide you a relevant service proposal we handle your data based on our Privacy Policy.
    I want to subscribe to the blog so I get regular updates on topics related to business immigration, citizenship application, business services and other services.
  • This field is for validation purposes and should be left unchanged.
Donate 1+1% of your personal income tax in Hungary
Don’t forget to donate your 1% personal income tax

The deadline to report your personal income tax in Hungary is coming up: 21 May 2024, Tuesday. At the same time, you can also donate 1+1% of your taxes. This costs you nothing, and you can support a good cause.

Read More
Tax returns in Hungary
Tax returns season coming up in Hungary

Tax returns season is starting soon in Hungary. Drafts created by the Tax Authority become available next week; the deadline for submission is 21 May 2024.

Read More

Archives