Value Added Tax

VAT tax group is a group of taxable persons where supply of goods and services between the group members are exempt from VAT, and the selected group representative submits a single joint monthly VAT tax return for the whole group. This option can be mainly an advantage if the group includes both VAT paying and VAT reclaiming members.

As a general rule, the members must be companies that are considered related companies based on the effective regulations, with a registered address for economic purposes in Hungary. Our colleagues provide assistance in examining the requirements and possible benefits, and, if required, in creating a VAT tax group.

The (Hungarian) taxpayers with a registered address in Hungary may claim refunds of VAT charged in another member state of the European Community for their purchases or services used in the given financial year. VAT refunds are carried out as part of a tax authority procedure in which we can gladly help our clients.

Our experts provide assistance in examining the validity of the refund request, and in submitting the reclaim.

Since 2020 it has been possible for the taxpayer to retroactively reduce the base of value added tax paid after accounts receivables written off as bad debt, i.e. to retroactively reclaim VAT due on receivables, if all the requirements specified in the VAT law are met.

VAT is reclaimed by submitting a self-revision, but expert assistance is recommended to ensure legal compliance. Our experts provide assistance in examining the validity of VAT refunds, in preparing the related background documentation, and in calculating the value of possible financial effects.

Tax number can be requested also by taxpayers who do not have a registered address for economic purposes, a permanent place of living or a usual residence in Hungary, but carry out activities subject to VAT after which they have to pay tax liability.

Under Hungarian tax regulations, taxable activities can be performed in Hungary only if the taxpayer has a tax number. A taxpayer planning to perform taxable activities must be registered with the Hungarian tax authority. If a company with a foreign registered address and no registered address, subsidiary or branch in Hungary must pay VAT or has a VAT reclaim in Hungary, the foreign company must be registered with the tax authority in order to fulfill its taxpaying obligation or exercise its VAT reclaim rights. This means that the company must request a tax number from the National Tax and Customs Office, and must submit a tax return for the activities performed here.

Our professionals can help with the administration of the Hungarian VAT registration process, and with preparing tax returns.