When you set up a company in Hungary, you are entitled to receive an immediate EU VAT number. Learn why it is beneficial to your business.
Having an EU VAT number improves trading relations with European partners quite a bit. Since VAT, or value added tax, can be as high as 27% in Europe, not having to pay it comes at a great advantage. Cross-border transactions are mostly exempt from VAT if both you and your business partner have an EU VAT number. Needless to say, this is greatly beneficial for your cash flow as well as for VAT administration.
All EU VAT numbers are publicly searchable in the European Commission’s database. This means that everyone can check if a certain VAT number is valid and which company it is registered to. This adds an extra layer of trust for business partners that you are trading with for the first time: both partners can verify the basic information of the other party.
In some countries, a new company has to apply for an EU VAT number after incorporation. The procedure mostly involves a lot of paperwork. Sometimes, the company even has to present contracts or invoices as proof of their European trading relations. After the documents are submitted, it can take more than a month until the company receives their EU VAT number.
In contrast, getting an EU VAT number in Hungary is fast and automatic. Company incorporation only takes 4-5 business days, and you also get an immediate EU VAT number. This means that you can start trading with your new company right away.
Best of all, Hungary now has the lowest corporate tax rate in Europe, set at just 9%. Along with a central location, Schengen membership and a low cost of living, this makes it an ideal environment to start your new European company. Our services will accompany you though the whole incorporation process. Set up a company with a Power of Attorney or in person, quickly open a bank account, and start realising your vision. You are just an email away from it!
Last Updated 28.11.2019
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