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VAT Registration

Are you planning to do business in Hungary without establishing a Hungarian company or any other business presence? Direct trading through a foreign entity in Hungary is possible, but you may be obliged to VAT registration in Hungary (in Hungarian: “ÁFA”). The Hungarian rules on the VAT registration obligation follow the EU VAT legislation.

VAT registration as of EUR 299,00 within 48 hours

VAT registration is a routine administrative process, especially if your company is resident in another EU Member State.

When incorporating a Hungarian company, it will receive a general tax identification number. This number is also valid for VAT purposes. Therefore, a separate VAT registration is not required.

FirmaX administrative and tax expert team helps to process the VAT registration of your company in Hungary.

Our VAT registration services include:

  • identifying whether VAT registration is required
  • preparation of the VAT registration form
  • arranging for the signing of the required VAT registration forms
  • submitting the VAT registration request
  • coordinating the VAT registration with the tax authority
  • providing tax consultancy regarding VAT registration

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Things You Need To Know About VAT

All businesses in most parts of the world are liable to pay VAT. Previously, VAT was not as it is today. Before you do anything, make sure that you understand what VAT is. The full form of VAT is Value Added Tax and it is a type of consumption tax that is levied on a firm or person based on the types of services or goods you are selling are valued at.

With so many types of taxes levied on goods and services, it is normal for some people to get confused between Sales Tax and VAT. These above-mentioned two things are completely different from each other. A company or a firm has to pay VAT along with sales tax.

Different countries have different tax rules and a product is taxed according to the country’s rules and regulations. Every country has different tax rates for different products and services.

VAT is charged for different types of businesses such as restaurants, shoe shiners, hairdressers, and house cleaning. If you have a business that charges its customers for admission (such as Movie Theatres or Clubs), then your business is subjected to paying Value Added Taxes.

No matter what type of business you have, you are not exempted from paying VAT. You are only exempted from Value Added Tax if you are planning a fundraising and charity event in which you are offering products and services.

You must make sure that the charity event or fundraising event is legitimate and you must also have the required documentation to get exempted from VAT in Hungary.

Failing to have the proper documentation might land you in trouble. Value Added Tax is similar to Sales Tax but the only difference is that you need VAT registration in Hungary for running your business.

By registering VAT, you will be abiding by the business law of the country. Failure to pay VAT in accordance with rules and regulations can make you pay a penalty. Before you register, make sure that you are well aware of the local laws of Hungary and understand what is required.

Before you register your business for VAT, make sure that you know whether it is compulsory for you to get VAT or not. If you live in Hungary and your annual sales are less than 4,76,000 euros, then it is not necessary to apply for VAT registration in Hungary. If your annual sales exceed the limit set by the government, then not having VAT might land you in trouble.

First-time business owners are less likely to know much about VAT. If you want to register voluntarily for VAT, you can look for the forms online or register online. When filling out forms, you must be honest, or else, you can land in trouble if there is a difference between your forms and business. Things can get easier if you hire an advisor for VAT as we can explain everything in detail and will help you in registering for VAT in Hungary.

Clients say about FirmaX:

“FirmaX tax consultant team delivers accurate, timely and commercially tailor-made advice regardless of the nature of the engagement.” – Helen from Luxembourg