Foreign currency invoicing at a Hungarian company, a practical guide in 2026

Hungarian companies are increasingly working with foreign clients, international suppliers, with fees set in euros or other currencies. A consulting company invoices an Austrian partner in euros, a Hungarian webshop serves foreign customers, an IT company agrees on a dollar agreement with its American client, or a domestic company concludes a contract with a Hungarian business partner in euros. In such cases, it is a natural business need that the invoice should be made in foreign currency rather than in HUF.

However, foreign currency invoicing is not just a technical issue. It is not enough to select the EUR, USD or GBP currency in the invoicing software. The Hungarian VAT rules, accounting regulations, online invoice data reporting and accounting practices together determine how a foreign currency invoice should be issued and booked in a regular manner.

The most important starting point is that a Hungarian company can issue invoices in foreign currency, but this does not mean that Hungary’s tax and accounting obligations will disappear. From the point of view of accounting, VAT returns, possible VAT recovery, data reporting and annual reporting, the accurate management of forint values, the exchange rates applied and any exchange rate differences remains of paramount importance

This guide summarizes the most important practical issues of foreign currency invoicing for Hungarian companies.

1. Can a Hungarian company issue a foreign currency invoice?

Yes. As a Hungarian taxpayer, a business can issue invoices in a foreign currency, such as euros, US dollars, Swiss francs or other currencies. This is particularly common in the case of international services, export transactions, EU partners, foreign-owned companies and contracts concluded in foreign currency.

However, it is important to distinguish between three concepts:

1. the contract currency,
2. the currency of the account,
3. the HUF value for tax and accounting purposes.

The parties may agree to determine the consideration in euros. The invoice can also be made in euros. However, according to Hungarian rules, VAT, book value, tax return data and items appearing in the annual report must be converted into HUF.

Therefore, the main question in foreign currency invoicing is not whether it is possible to invoice in euros or dollars. Maybe. The real question is what exchange rate should be applied, on which day, for what purpose, and what should be indicated on the invoice.

2. Foreign currency account for domestic and foreign transactions

Foreign currency accounts can be found not only to foreign partners. For example, two Hungarian companies can agree on euros, and they can also determine the consideration for a domestic transaction in foreign currency. However, in such cases, if the transaction is subject to Hungarian VAT and a VAT invoice must be issued, the VAT indicated in HUF is particularly important.

The situation is different if the invoice is addressed to a foreign customer and the transaction is, for example, a tax-exempt supply of goods within the EU, an export sale, a service with a foreign place of supply or a service subject to reverse charge. In this case, the invoice may not have Hungarian VAT, but the correct legal title, place of supply, tax number, EU tax number, tax exemption or reverse charge reference is still crucial.

Therefore, in the case of foreign currency invoicing, the VAT treatment of the transaction must always be determined first. Only then comes the exchange rate and the technical billing issue.

In practice, the following questions should be asked:

• Do we invoice to a domestic or foreign partner?
• Is it a supply of goods or a supply of services?
• Where is the place of performance of the transaction from a VAT point of view?
• Is Hungarian VAT charged, or is the transaction tax-free/reverse charged?
• What currency did the parties agree on?
• Which exchange rate does the company apply for VAT and accounting?

It is not worth clarifying these afterwards, because an incorrectly issued foreign currency invoice can later cause problems with VAT returns, bookkeeping and partner reconciliation.

3. Conversion of VAT into forints: the most important rule

If the consideration for a transaction subject to Hungarian VAT is determined in a foreign currency, the VAT base and in particular the amount of VAT charged must also be determined in HUF. The VAT Act expressly stipulates that even if the data on the invoice are in a foreign currency, the tax charged must be indicated in HUF.

In practice, this means that a Hungarian company can issue an invoice in the amount of EUR 1,000 + 27% VAT, for example, but the HUF amount equivalent to EUR 270 VAT must also be included on the invoice. The buyer can take this amount of VAT into account when deducting VAT, provided that the other conditions for the right to deduct tax are also met.

Many invoicing programs automatically indicate the exchange rate applied and the VAT amount in HUF. Still, it’s the responsibility of the business to make sure the setup is correct. It makes a difference whether the program uses the MNB exchange rate, the bank’s selling rate, the previous day’s exchange rate or an individually fixed exchange rate.

4. Which daily exchange rate is applicable for VAT?

From the point of view of VAT, it is not arbitrary which daily exchange rate is used. Section 80 of the VAT Act determines the date on which the exchange rate applicable to the tax base expressed in foreign currency is to be applied.

As a general rule, the date of the exchange rate is:

• in general, the date of performance,
• in the case of periodic settlement transactions, in certain cases, the date of issue of the invoice,
• in the case of an advance payment, the date of assessment of the tax payable,
• In the case of intra-Community procurement, a date is also determined according to special rules.

In practice, this means that the date on which the invoice is issued is not always decisive. For example, if the date of performance of a service is 10 June, but the invoice is issued on 15 June, the exchange rate of 15 June should not automatically be used. You have to look at the type of transaction and the performance rule under the VAT Act.

This is especially important for end-of-month, quarterly, continuous or advance transactions. One of the most common mistakes in foreign currency invoicing is that the company uses the exchange rate valid on the day the invoice is issued, even when a different date would be applicable according to the VAT rule.

5. MNB exchange rate or bank exchange rate?

Pursuant to the VAT Act, the foreign currency selling rate of a credit institution with a currency exchange licence in Hungary can be applied for conversion into forints. In addition, it is also possible to apply the official foreign exchange rate of the MNB, if the taxpayer decides in advance and reports this to the state tax authority.

In practice, most businesses prefer the MNB exchange rate because it is transparent, easy to control, widely used and easily managed by accounting systems. However, the use of the MNB exchange rate is not merely a matter of convenience: if the company wants to use it for the conversion of VAT into forints, the choice must be duly reflected in the notifications and in internal practice.

It is important that the exchange rate management you choose is consistent. It is not advisable to use the MNB exchange rate in one month, the bank exchange rate in the next, and the rounded exchange rate entered by hand in the third month. Such practices can easily cause discrepancies between invoices, online data reporting, VAT returns and accounting.

6. The VAT exchange rate and the accounting exchange rate are not always the same

One of the most important practical points of foreign currency invoicing is that the VAT exchange rate and the accounting and accounting exchange rate may differ from each other.

From the point of view of VAT, Section 80 of the VAT Act determines the applicable exchange rate and date. From the point of view of accounting, however, the rules of the Accounting Act and the accounting policy of the company are authoritative. The Accounting Act allows for the application of several exchange rates, such as the average exchange rate of a selected credit institution, the MNB exchange rate or the ECB exchange rate. In certain cases, the company may also decide to apply the exchange rate in accordance with the VAT Act when determining the HUF value of foreign currency receivables and liabilities.

This is important because several forint values can appear in the life of a foreign currency account:

• the HUF amount of VAT on the invoice,
• the HUF book value of the receivable or liability,
• the HUF value calculated at the time of financial settlement,
• the exchange rate difference,
• the forint value resulting from the year-end revaluation.

Mixing them up can result in incorrect accounting and incorrect tax data. Therefore, it is advisable for the company to record in advance what exchange rate it uses for VAT, what exchange rate it uses for accounting, and how it handles exchange rate differences.

7. What happens when I pay?

If the invoice is issued in a foreign currency, the buyer typically pays in a foreign currency. However, in the case of financial settlement, another exchange rate issue arises in the accounting. The receivable is entered into the books at the time of performance or when the invoice is booked at a specified HUF value. When the buyer actually pays, the forint value may differ when the foreign currency arrives.

For example, the company issues an invoice in the amount of EUR 1,000, which appears in the accounting with a value of HUF 390,000. Later, the buyer pays the EUR 1,000, but based on the exchange rate applied at the time of settlement or credit to the bank, the HUF value of the amount received is already HUF 395,000. In the opposite case, a currency loss may occur.

This is not an invoicing error, but a natural consequence of foreign currency transactions. The problem begins when the business cannot say exactly which exchange rate, on which day and for what purpose.

8. Advance payment in foreign currency

In the case of foreign currency transactions, special attention must be paid to advances. If the customer pays an advance payment and the advance is subject to VAT, the VAT related to the advance must also be converted into HUF. Different exchange rates may appear between the advance invoice, the final invoice, and the actual performance.

It is a common mistake that the company simply recalculates the entire transaction at the current exchange rate on the final invoice, ignoring the exchange rate of the previously issued advance invoice. This can also cause differences in VAT, accounting and settlement with the partner.

In the case of advance foreign currency transactions, the following must always be checked:

• when the advance payment was received,
• the exchange rate at which the VAT on the advance was converted into HUF,
• how the advance will appear on the final invoice,
• whether there is an exchange rate difference,
• whether the invoicing software and accounting management match.

9. Language and mandatory content of foreign currency accounts

The invoice can be issued in Hungarian or in a live foreign language. For international transactions, it is common to have an invoice in English or bilingual. From a practical point of view, in many cases, a bilingual invoice is the best solution, because the foreign partner understands it, but it is also easier to handle for the Hungarian accountant and a possible Hungarian tax authority audit.

The foreign currency invoice must contain all general mandatory invoice data: the invoice serial number, date of issue, date of performance, seller and buyer data, tax numbers, name and quantity of the product or service sold, tax base, tax rate, tax amount or the appropriate indication of tax exemption/reverse charge.

If the invoice contains VAT and is issued in a foreign currency, the HUF amount of the VAT charged must also be indicated. In addition, it is highly recommended to indicate the exchange rate used and its source, such as the MNB or the chosen bank rate. This will not only help the accountant, but also the buyer and a subsequent check.

10. Online invoice data reporting for foreign currency accounts

In the case of foreign currency invoices, the online invoice data reporting obligation must also be fulfilled if the transaction is subject to data reporting according to Hungarian rules. The invoicing software must be capable of transmitting invoice data to the system of the National Tax and Customs Authority.

Therefore, it is especially important that the company does not work with manual, uncontrolled exchange rates when invoicing in foreign currency. The currency, exchange rate, tax base and VAT amount included in the online reporting must be consistent with the data on the invoice and the accounting processing.

In practice, it is worth using an invoicing program that:

• handles foreign currency invoicing,
• can automatically pull in the MNB exchange rate,
• indicates the VAT denominated in HUF,
• properly manages advance and final invoices,
• fulfils the online data reporting of the National Tax and Customs Authority,
• provides exportable data for accounting.

Errors in foreign currency invoicing are often not caused by a complete lack of knowledge of the law, but by a poorly configured invoicing program, a manually modified exchange rate or a lack of communication between invoicing and accounting.

11. Management of incoming invoices in foreign currency

Not only outgoing but also incoming foreign currency invoices should be monitored. If a Hungarian company receives a foreign currency invoice from a foreign or domestic partner, it must be recorded in the accounting at HUF value. The VAT content, deductible VAT, value accounted for as an expense or an asset, and the financial settlement of an incoming invoice may raise different exchange rate issues.

They require special attention:

• invoices received for EU services,
• intra-community procurement of goods,
• invoices related to imports,
• reverse charge transactions,
• invoices received from foreign platforms and software providers,
• foreign currency subscriptions paid by bank card.

In the case of these transactions, the accountant must not only see how much the amount was in euros or dollars, but also what type of transaction it is, where the place of performance is, whether VAT payable through self-taxation is generated, and whether there is a right of deduction.

12. Contractual aspects before invoicing in foreign currency

Foreign currency invoicing should not be well structured at the invoice, but at the contract. It is worth clearly stating in the contract:

• the currency of the consideration,
• whether it is a net or gross amount,
• the management of VAT,
• the currency of payment,
• the payment deadline,
• the payment of bank costs,
• in the event of late payment, the interest,
• possible exchange rate risk rule,
• in the case of an advance, the management of the advance and final invoice.

In the case of international contracts, it is especially dangerous if the parties only write “fee: EUR 5,000”, but do not clarify whether it is a net or gross amount, whether it includes VAT, according to which country’s tax rules it should be treated, and what invoice the buyer expects.

An inaccurate contract often results in an inaccurate invoice. An inaccurate invoice can lead to accounting, VAT and payment disputes.

13. Common mistakes when invoicing in foreign currency

The most common foreign currency invoicing errors at Hungarian companies are the following:

1. The invoice does not indicate the VAT converted into HUF.
2. They use the wrong daily exchange rate.
3. The company is not registered to apply the MNB exchange rate, but still uses it for VAT purposes.
4. The invoicing program and the accounting work with different exchange rates.
5. In the case of advance payments and final invoices, exchange rates are not handled properly.
6. The invoice doesn’t have an appropriate tax exemption or reverse charge reference.
7. In the case of EU transactions, the EU VAT number is missing or incorrect.
8. In the case of foreign currency bank settlement, the exchange rate difference is not accounted for.
9. At the end of the year, there will be no revaluation of foreign currency receivables and liabilities.
10. The contract does not clearly state the currency and VAT treatment.

These mistakes are unpleasant in themselves, but they can become particularly problematic in the case of a NAV audit, audit, company sale, investor due diligence or international partnership dispute.

14. Practical checklist before issuing a foreign currency invoice

Before issuing a foreign currency invoice to a Hungarian company, it is worth going through the following list:

1. Have we checked whether the transaction is domestic, EU or third-country?
2. Have we determined the place of supply for VAT purposes?
3. Have we clarified whether the transaction is subject to Hungarian VAT, tax-exempt or reverse charge?
4. Is the currency and VAT treatment clear in the contract?
5. Do we know which completion date the exchange rate is linked to?
6. Is the correct exchange rate source set up in the invoicing software?
7. If we use the MNB exchange rate for VAT purposes, has the necessary notification been made?
8. Is the HUF amount of the VAT charged on the invoice shown if the transaction is subject to VAT?
9. Are the invoice details compliant with online data reporting?
10. Does the accountant know exactly what exchange rate should be applied in accounting?
11. In the case of an advance payment, are the advance invoice and the final invoice properly linked?
12. Will the exchange rate difference be handled at the time of bank settlement?

If the answer to the above questions is yes, foreign currency invoicing is usually safe to handle. If several points are uncertain, it is worth consulting with an accountant or tax advisor before issuing the invoice.

15. Conclusion

Foreign currency invoicing is a completely legal and often commercially justified solution for Hungarian companies. It can be especially useful for international customers, foreign suppliers, export transactions, EU services or contracts in foreign currency.

However, the most important thing is that there is a sound tax and accounting logic behind the foreign currency account. From the point of view of VAT, the appropriate exchange rate and the amount of VAT converted into forints must be determined. In accounting, foreign currency receivables, liabilities, financial settlements, exchange rate differences and year-end revaluation must be managed. Invoicing software, accounting policy and contractual practices must work in harmony.

A well-set foreign currency invoicing process not only helps with legal compliance, but also reduces partner disputes, speeds up accounting, makes finances more transparent, and makes international business operations more secure.

Therefore, foreign currency invoicing should not be treated as an administrative detail, but as an important part of the financial and legal operation of the business.