Hungarian VAT rates and VAT compliance
Hungarian VAT rates
It is important that the correct Hungarian VAT rates are used in accounting records and on invoices as companies are held directly liable for any errors. The European Union does set the framework for the use of VAT rates, but countries are still free to set their own headline rates.
The current Hungarian VAT rates are:
Hungarian VAT rates
|Rate||Type||Which goods or services|
|27%||Standard||All other taxable goods and services.|
|18%||Reduced||Certain foodstuffs; some take away food; admission to certain open-air concerts; hotel accommodation.|
|5%||Reduced||Certain foodstuffs; pharmaceutical products (intended for human use); some medical equipment for disabled persons (excluding repair); books (excluding e-books); newspapers and periodicals; some social housing; district heating; some supplies of new buildings; restaurant and catering services (food prepared on site and non-alcoholic beverages); internet access services; certain writers and composers services.|
|0%||Zero||Intra-community and international transport.|
Hungarian VAT compliance
Once in possession of a Hungarian VAT number, there are compliance rules which must followed on accounting and VAT rates. These includes:
When providing local supplies under a Hungarian VAT number, companies are required to follow local accounting and tax rate rules. These include:
- Detailing information about the supplier and customers, and transactions costs etc on all invoices
- Issuing full invoices in accordance with the Hungarian VAT Act
- Issuing invoicing for goods or services in accordance with the Hungarian time of supply rules.
- Processes and control issues for the use of electronic invoices
- Maintenance of book, which must be retained for at least eight years.
- Treatment of credit notes, correcting VAT returns etc.
- Translation rates for foreign currency invoices
What is the tax point for Hungarian VAT
The tax point (time of supply) rules in Hungary Republic determine when the VAT is due. It is then payable to the tax authorities 20 days after the VAT reporting period end (monthly or quarterly).
For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.
Latest Hungarian news
December 12, 2018
On 12 December, the European Commission published details of a new rule which would make large online marketplaces responsible for calculating, collecting and remitting VAT on certain B2C cross-border transactions below €150. Where goods are imported by an EU or non-EU merchant, and then sold via a marketplace in another EU country..
October 17, 2018
Hungary has received permission to introduce an VAT registration threshold for businesses of HUF 12 million from 1 January 2019. This is approximately €48,000,...
September 7, 2018
Hungary has declared the 1 July launch of its new live VAT invoice reporting regime a success. Over 250,000 tax payers have now started...
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