Value Added Tax, or VAT in Hungary is a consumption based tax, which is regularly added to the net price of products sold. When you buy something in Hungary as an individual, you will most probably not see the net price of items, only the price topped with VAT. However, if you have a company and you can reclaim VAT, its sum will matter to you. So let’s see the changes to VAT in Hungary in 2017.
The standard rate of VAT in Hungary is 27%. Lower rates apply to certain products or services:
From 1 January, 2017, the VAT of the following articles will be reduced:
Until now, only the provider had to include their VAT number as well as their company name and seat address on invoices. For the customer, it was enough to indicate the (company) name and (seat) address.
Tax exemption means that, up to a certain threshold, you may issue invoices that do not contain VAT. Until now, the threshold for individual tax exemption was a revenue of HUF 6,000,000 per year (which is about EUR 20,000).
The above listed changes might affect your pricing structure and development strategy for 2017. Make sure to consult your accountant especially on invoicing, as they will be able to tell you exactly what you have to consider in the invoicing and pricing of your products. Alternatively, you can also ask for a consultation with the accounting and finance department of Helpers. Call +36-1-317-8570 or send an email to info@helpers.hu.
Find more news on Hungarian tax regulation in 2017.
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