
Hungary VAT 2025
VAT in Hungary: Factual Information for Foreign Investors
Standard VAT Rate:
- The standard Value Added Tax (VAT) rate in Hungary is 27%.
Reduced VAT Rates:
- Reduced VAT rates of 18% and 5% apply to specific goods and services.
- These reduced rates apply to items like:
- Basic food products.
- Pharmaceuticals.
- Books and newspapers.
- Certain services.
VAT Registration:
- Businesses operating in Hungary must register for VAT if their taxable transactions exceed specific thresholds.
- Foreign businesses conducting taxable transactions in Hungary may also be required to register.
VAT Returns:
- VAT returns are filed monthly, quarterly, or annually, depending on the business's turnover.
- Electronic filing is mandatory.
Intra-Community Transactions:
- Transactions with other EU member states are subject to specific VAT rules.
- The reverse charge mechanism may apply.
Imports and Exports:
- Imports into Hungary are subject to VAT.
- Exports to countries outside the EU are generally exempt from VAT.
VAT Refunds:
- Foreign businesses may be eligible for VAT refunds under specific conditions.
- Refund procedures are defined by Hungarian tax legislation.
E-commerce:
- E-commerce transactions are subject to Hungarian VAT rules.
- EU wide regulations also apply.
Real Estate:
- The sale of newly constructed real estate can be subject to VAT.
- The sale of older real estate may be exempt.
Small and Medium-sized Enterprises (SMEs):
- There are special VAT regulations that apply to SMEs.
E-receipts:
- Specific regulations regarding the information that must be contained on E-receipts.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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