October 26, 2017

VAT

Value added tax (VAT)

Hungarian companies register for VAT, and receive their VAT number immediately after they have been incorporated. The European VAT number can be obtained immediately after the receipt of the Hungarian VAT number; there are no special conditions for obtaining it, which makes the Hungarian company particularly attractive, since in most European countries the receipt of the VAT number is a very slow and bureaucratic process involving the implementation of a number of conditions.

The rate of VAT in Hungary is 27%.

There are types of activities for which VAT is not paid, for example, the sale of certain educational services, software, etc., but before starting such activities, it is necessary to consult with the accountant, since certain conditions must be met to obtain exemption from VAT.

VAT reporting is submitted monthly, regardless of whether or not the company conducted any activities.

In the case of new companies, VAT can be refunded, but only once the amount refundable has reached at least 1 million HUF. The VAT requested for the first time will be refunded within 3 months, afterwards the refund is independent on the amount and is made on monthly basis