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This guide provides an in-depth overview of VAT (Value Added Tax) in Hungary, including applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is tailored for businesses engaging in transactions within Hungary or with Hungarian customers.
Hungary’s VAT system, governed by the Hungarian VAT Act (Act CXXVII of 2007), aligns with the EU VAT Directive. VAT is applicable on most goods and services supplied within Hungary, as well as on imports.
Hungarian Forint (HUF)
HU followed by 8 digits (e.g., HU12345678)
Yes, required for non-EU businesses conducting VAT activities in Hungary.
No, registration is mandatory for businesses involved in taxable activities.
| Rate | Rate Type | Description |
| 27% | Standard Rate | Applies to most goods and services |
| 18% | Reduced Rate | Applies to certain foodstuffs |
| 5% | Reduced Rate | Applies to printed books, hotel services, certain pharmaceuticals, and some medical supplies |
| Exempt | Financial services, insurance and human medical care |
| Business Type | VAT Registration Threshold |
| Resident Businesses | No threshold, all persons undertaking business activity in Hungary must register for VAT. But small businesses with an annual turnover of less than HUF 12,000,000 per may apply for exemption. |
| Non-Resident Businesses | No threshold: registration required for any taxable activity in Hungary |
| Frequency | Filing Deadline | Payment Deadline |
| Monthly | 20th day of the following month | 20th day of the following month |
| Quarterly | 20th day of the month following the quarter | 20th day of the month following the quarter |
| VAT on Cross-Border Electronically Supplied Services | Yes |
| VAT Rate on Digital Services | 27% |
| Threshold for Registration | EUR 10,000 per calendar year for EU-based businesses; no threshold for non-EU businesses |
| VAT on B2B Sales | Reverse charge mechanism applies |
Hungary applies VAT on digital services based on the consumer’s location, typically utilizing the OSS system for EU cross-border services.
Access to electronic newspapers and periodicals may be exempt under specific conditions, typically for educational or public interest purposes.
E-invoicing is mandatory for B2G (business-to-government) transactions in Hungary. Invoices must comply with the required format and include transaction details and VAT.
Although formal e-invoicing is yet to be mandated, Hungary has used a centralized system to implement real time reporting (RTIR) for all businesses registered for VAT in Hungary since 2018. It enables the Hungarian Tax Office to validate the invoices in real-time.
Disclaimer: This guide is for informational purposes only and may not cover all aspects of Hungarian VAT. Consult one of our tax professionals for specific guidance regarding your business.
| Pos. | Username | Country | Score |
|---|---|---|---|
| 1 | marko.kangasmaki@solnet.group | Finland | 100 % |
| 2 | Connor | Afghanistan | 92 % |
| 3 | Plrstrive | United Kingdom | 92 % |
| 4 | elkeg | Netherlands | 92 % |
| 5 | Cait | South Africa | 92 % |
| 6 | Chilli Dev | South Africa | 92 % |
| 7 | Brett | South Africa | 83 % |
| 8 | Quizard | South Africa | 83 % |
| 9 | Quinny Ness | South Africa | 75 % |
| 10 | Bronwynm | South Africa | 75 % |
