Standard rate: 27 %
Reduced rate 5 %, e.g. for
Reduced rate 18 %, e.g. for
Supply of goods and withdrawal for private use (self supply) are taxable.
Principally the place where the item is located at the time disposal is transferred (static supply).
In case of dispatch/transportation by the supplier or purchaser: the place where dispatch/ transportation begins (moving supply).
Importation from third country: If the supplier owes the import VAT – import country
In case of transportation by ship, airplane, railroad within the EU: the place of dispatch
Special provisions for chain and triangular transactions
Supply of services and private use / supply of services without consideration (self-supply) are taxable
From 1 January 2010 a differentiation is made between services rendered
For purposes of determining the place of the supply of services,
| B2B | B2C |
| Place of recipient
(The place where the recipient of services has established his business) |
Place of supplier
(The place where the supplier of services has established his business) |
| B2B | B2C | |
| Supplies of services by intermediaries | Place of recipient (basic rule) | Place of the underlying transaction |
| Property services | Place of the property | Place of the property |
| Cultural, artistic, scientific, educational, sports, entertainment or similar services, like services in connection with fairs and exhibitions including services of the respective organizers | Place of recipient (basic rule) | Where the services are physically carried out |
| Other services con- cerning the right of admission and related other services for events like fairs and exhibitions | Place of recipient (basic rule) | Where the services are physically carried out |
| Passenger transport | Distances covered | Distances covered |
| Transportation of goods (without intra-community portion) | Place of recipient (basic rule) | Distances covered |
| Intra-community goods transportation | Place of recipient (basic rule) | Place of departure of the transport |
| B2B | B2C | |
| Ancillary transport services | Place of recipient (basic rule) | Where the services are physically carried out |
| Appraisal and processing of movable tangible objects | Place of recipient (basic rule) | Where the services are physically carried out |
| Restaurant and catering services | Where the services are physically carried out | Where the services are physically carried out |
| Restaurant and catering services in connection with intra-community passenger transport | Place of departure | Place of departure |
| Hiring of means of conveyance for up to 30 days | Where the means of transport is actually put at the disposal of the customer | Where the means of transport is actually put at the disposal of the customer |
| Hiring of means of conveyance for over 30 days | Place of recipient (basic rule) | Where non-taxable person is established
Special regulations for hiring pleasure boats |
| “Listed services” to third country recipients | Place of recipient (basic rule) | Where non-taxable person is established |
| Telecommunication, broadcasting and electronically supplied services | Place of recipient (basic rule) | Where non-taxable person is established |
Currently taxable persons from an EU member state or third country – who provide electronically supplied services, telecom, radio and TV services to consumers within the EU – can, subject to certain conditions, make use of simplifications within the MOSS system. The taxable person will thereby only be registered for VAT purposes in the member state where the headquarters of the economic activity and/or the permanent establishment are located.
As of July 1, 2021 a registration in the country of destination is not required anymore for the following services, because sales can be declared in one member state of the EU via the One-Stop-Shop (OSS) and VAT can be payed in a centralized way:
For all supplies of services and work supply Special regulation (among others) for building services
The supplier of the service has no domestic domicile or habitual abode, nor a domestic perma- nent establishment involved in supplying the service
The recipient of the supply of services is a taxable person registered in Hungary (even for non-taxable activities)
Invoice without VAT, indication of the reverse charge, VAT registration numbers of the supplier and the recipient
The recipient owes the VAT.
Apply to Hungarian construction services, among others, and areas susceptible to fraud (e.g. hiring out of labour, cereals , metal products, scraps)
Important differentiation concerning input VAT deduction
For VAT invoiced to the business for the supply of goods and services
Generally no deduction of input VAT with respect to:
In case of fixed assets: If the circumstances which have been relevant for the input VAT deduction change subsequently, a corresponding positive or negative input VAT correction must be made.
As a general rule, the observation period for input VAT correction is 60 months. The observation period for input VAT correction related to properties is generally 240 months.
Renting of immovable property is VAT exempt; the lessor can opt for tax liability
Revenues from the sale of real property are VAT exempt; the seller can opt for tax liability (27 %).
Exception:
Sale of building lots and of land with buildings without permit of use or with permit of use younger than 2 years is always taxable.
Electronic application to be made by the Hungarian taxable person at its competent Hungarian tax office at the latest by 30 September of the following year. Separate applications are required for each member state.
Filing of original invoices is only necessary if required by fiscal authorities of the respective member state.
Minimum amount of refundable input VAT: EUR 400 (EUR 50 if the refund period coincides with the calendar year).
Taxable persons without domicile or permanent establishment in Hungary.
Registration required if sales are effectuated in Hungary.
If no sales are made in Hungary, electronic applica- tion at the competent tax office in the EU member state (originating country) of the taxable person.
If no sales are made in Hungary, refund has to be applied for by September 30 of the following year at the latest
Official form, invoices to be submitted. Minimum input VAT refundable: EUR 400 (EUR 50 if the refund period coincides with the calendar year). Only for countries Hungary has a bilateral treaty with.
Opening Hours:
Mo-Th: 08:00 – 17:00
Fr: 08:00 – 14:00
Opening Hours:
Mo-Th: 08:00 – 17:00
Fr: 08:00 – 14:00
Opening Hours:
Mo-Th: 08:00 – 17:00
Fr: 08:00 – 14:00
