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Hungary drops EU VAT MOSS invoices

  • Dec 14, 2015 | Richard Asquith

Hungary drops EU VAT MOSS invoices

Hungary has formally dropped the requirement for foreign providers selling digital services to Hungarian consumers to produce locally compliance invoices. This includes B2C sales of broadcast and telecommunications (data and voice) services.

The new rules will apply from 1 January 2016. However, the Hungarian tax authorities have not been enforcing the requirement so will practically make little difference. However, customers may still request an invoice which then must be produced.

The Mini One Stop Shop (MOSS) regime applies to the new rules of determining the place of supply for VAT on B2C digital sales. From the start of 2015, foreign providers based in the EU had to start charging the VAT rate of their consumers, and paying the VAT to the relevant authorities. To eliminate the need to require in multiple EU states, the MOSS portals were introduced. These enable a single, quarterly VAT return to be filed with details of all sales in foreign EU states. The providers can remit the total VAT through the portal, and it is then distributed by the tax authorities to the correct countries.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.