Hungarian VAT rates and VAT compliance

As an EU member state, Hungary follows EU rules on value added tax (VAT) compliance. Hungarian VAT, known locally as Általános forgalmi adó (ÁFA), is administered by the National Tax and Customs Administration of Hungary (NAV).

Hungary applies the highest standard VAT rate in the EU, alongside reduced rates and zero rating for specific goods and services.

Businesses registered for VAT in Hungary must apply the correct VAT rate to taxable supplies and remit the tax to NAV by submitting periodic VAT returns.

Some supplies are exempt from VAT in Hungary. These commonly include:

• Certain financial and insurance services
• Healthcare and medical services
• Education and vocational training
• Certain cultural, social, and welfare services
• Long-term residential rental accommodation

Exempt supplies do not generate output VAT and generally do not allow recovery of input VAT related to those activities.

A VAT number is required for all businesses carrying out taxable activities in Hungary.

• Hungarian-established businesses must register for VAT once annual taxable turnover exceeds HUF 12 million. Below this threshold, businesses may qualify for the small business VAT exemption, subject to eligibility conditions.

• Non-established (foreign) businesses making taxable supplies in Hungary must generally register for VAT from the first taxable supply. There is no special turnover threshold for nonresidents.

• For cross-border B2C supplies of goods and services within the EU, the EU One-Stop Shop (OSS) threshold of €10,000 applies. Once exceeded, Hungarian VAT must be charged, or the supplier may elect to use the OSS scheme.

  
  

Get more information on VAT registration in Hungary.

VAT-registered businesses in Hungary must file periodic VAT returns. Filing frequency depends on the taxpayer’s turnover and risk profile:

• Monthly: Default for most VAT-registered businesses

• Quarterly: Available to lower-turnover, low-risk taxpayers

• Annual: Permitted only in limited cases

Returns include output VAT on sales and recoverable input VAT on purchases. In addition to VAT returns, businesses may also be required to submit:

• EC Sales Lists (EU Sales Lists)

• Intrastat declarations (for intra-EU goods movements above thresholds)

• Real-time invoice reporting via Hungary’s Online Számla system

All filings are submitted electronically through NAV’s online portal.

Get more information on VAT returns in Hungary.

Foreign businesses storing goods in Hungary must consider VAT registration if those goods are held for sale.

Hungary does not operate a broad consignment or call-off stock exemption outside the EU simplification rules. Holding inventory in Hungary for sale typically triggers VAT registration obligations. Imports from outside the EU may trigger VAT registration regardless of the storage arrangement.

VAT is generally payable on the importation of goods into Hungary.

• Import VAT is due at customs clearance.
• VAT-registered businesses may recover import VAT as input VAT if the goods are used for taxable activities.
• Hungary does not operate a general postponed import VAT accounting system comparable to some other EU member states.

Foreign businesses supplying digital services (telecoms, broadcasting, electronically supplied services) to Hungarian consumers must charge Hungarian VAT once the €10,000 EU-wide B2C threshold is exceeded, unless they elect to use the OSS scheme.

• The standard VAT rate (27%) generally applies.
• Businesses must register for Hungarian VAT or OSS depending on the structure of their cross-border supplies.

EU-established businesses may reclaim Hungarian VAT through the EU VAT refund procedure via their home tax authority, generally by 30 September of the following year.

Non-EU businesses may reclaim Hungarian VAT under the non-EU VAT refund procedure, subject to eligibility and documentation requirements.

Some foreign businesses engaging solely in reverse-charge transactions may qualify for simplified recovery procedures.

Hungary applies zero-rating to qualifying exports of goods and certain services supplied outside the EU. Zero-rating allows VAT to be charged at 0% while preserving the right to recover related input VAT, provided documentary requirements are met.

Hungary does not operate an export VAT authorisation scheme equivalent to Ireland’s Section 56 (13A) system.

Intrastat declarations monitor intra-EU trade in goods. Hungarian VAT-registered businesses must submit Intrastat filings if annual thresholds set by NAV are exceeded.

• Reporting is typically monthly once thresholds are exceeded.
• Filings include commodity codes, values, quantities, and partner member state details.
• Submissions are made electronically through the Hungarian customs and tax systems.

Hungary requires EC Sales Lists for supplies of goods and certain services to VAT-registered customers in other EU member states.

Details typically include:

• Customer VAT identification numbers
• Total value of goods or services supplied
• Transaction type

ESLs must be filed electronically with NAV, and nil filings may be required even where no qualifying transactions occurred.

Businesses must issue VAT-compliant invoices that include:

• Supplier and customer details
• VAT number(s)
• Description of goods or services
• VAT rate(s) and VAT amount

Hungary also requires real-time electronic reporting of invoice data to NAV via the Online Számla system.

Time of supply rules:

• Goods: VAT generally becomes chargeable when the goods are delivered or the invoice is issued, whichever occurs first.
• Services: VAT is generally due at the earlier of service completion or invoice issuance.
• Imports: VAT is due at customs clearance.

VAT records must be retained for at least eight years. VAT returns and payments are generally due by the 20th day of the month following the reporting period.