VAT registration in Hungary

Voluntary and mandatory VAT registration

Your business will be required to register under VAT in Hungary if its activity involves the following:

• Triangular and chain transactions
• Toll manufacturing – if the products manufactured do not leave Hungary
• Organizing events and providing relevant services in the fields of culture, art, science, education, entertainment, or sports
• Real estate services
• Distance selling above limit (EUR 35,000 / 12 months)
• Electronic services
• Selling products to Hungary from a Hungarian warehouse

Voluntary VAT registration is popular in cases where a business has significant B2C sales in a target country (in our case, Hungary), and the VAT rate is considerably lower here than in the source country. However, since Hungarian VAT is relatively high (standard at 27%, lower for some products), this rarely happens.

If you are selling products to customers in EU member states, you may decide to register for the OSS instead of completing VAT registration at every member state separately.

What does VAT registration include?

VAT registration means that you will get a Hungarian tax ID which you can use when creating invoices for clients based in Hungary. You will be applying Hungarian VAT to these invoices, and you will need to pay VAT in Hungary. At the same time, you will need to be reporting VAT to the Hungarian Tax Authority, but you will also be able to reclaim VAT in Hungary.

In line with this, you will need a Hungarian accountant to take care of the relevant monthly reporting for your business – which we would be happy to do for you.

If your business is based outside the EU, you will also need a financial representative, which is not a service we provide.

Additionally, you will need a Hungarian mailing address where competent personnel regularly checks for incoming official mail and forwards messages to you or your Hungarian accountant as needed. As part of our virtual office service, we can take care of this for you too.

How to get started?

If you are interested in Hungarian VAT registration, contact our accounting team through the form below and tell us more about your business as well as your planned Hungarian operation. You will be asked questions about

• Where it is registered currently
• Whether it is mostly a B2B or a B2C business
• The number of invoices you expect to issue every month
• The revenue you expect to generate every month

You will receive a price quote for our services based on this. If you accept it, you will be asked to send us various company documents and a specimen signature. These will need some kind of authentication (notary or Apostille, based on where your company is based) and certified translation in Hungarian. We will also need a POA for our accountants so that they can act on behalf of your company.

VAT registration at Helpers Finance

As stated above, we would be happy to help you with VAT registration, the relevant accounting tasks, and mail forwarding. While we normally work with foreign owners from all over the world, we offer Hungarian VAT registration only to EU-based companies, since the otherwise required financial representative service is outside of our scope of operation.

Can we help you? Contact us now and tell us what you need.