Hungary — Value-added tax (VAT)
|General VAT Rate||Other Rates||Local Currency|
|27%||18%, 5%||Forint (HUF)|
Hungary's general VAT rate is 27%, with other rates including 18% and 5% that can apply to certain transactions. The Value-added tax (VAT) is administered by the Ministry for National Economy (www.kormany.hu/en/ ministry-for-national-economy) in Budapest.
Visitors to Hungary can qualify for a VAT refund on all purchases made for export - learn more about Hungary VAT refunds here.
Hungary has special reduced VAT rates on the following items:
18% reduced VAT rates on: basic foodstuffs; hotel
5% reduced VAT rate on: medical: books; domestic heating.
Hungary is a member of the European Union (EU) Member State trading bloc, which may affect international VAT collection and regulations.
Hungary's consumption tax is called the Value-added tax (VAT), locally known as Általános forgalmi adó, which was introduced in January 1988.
Hungary VAT rates for 2023
- 5%, 18%
Hungary VAT number format
Businesses in Hungary that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Ministry for National Economy, and will follow a certain format. The VAT number format is 12345678-2-34.
Hungary VAT return periods
Businesses in Hungary that are required to collect tax from consumers must file regular tax returns with the Ministry for National Economy in Budapest. Hungary's VAT return periods are:
- Newly registered taxpayers, large taxpayers and VAT groups
- Small taxpayers with no EU VAT number in at least the third year of registration
Hungary Value-added tax (VAT) Thresholds
These are the revenue thresholds at which businesses in Hungary are required to start collecting and remitting tax.
- Every taxable person is required to register
- Distance selling
- EUR35,000 per year
- Intra-Community acquisitions
- EUR10,000 per year (for taxpayers with special taxable status)
Recovery of VAT by non-established businesses
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Hungary are required to collect taxes from the consumer.
Hungary VAT Refunds
Hungary has a VAT refund program that allows tourists and others to receive a refund of any Hungary VAT paid on goods purchased in Hungary that are being exported from the country.
The minimum purchase amount needed to claim a VAT refund is €55001.00 Euros (which would yield a VAT refund of about €14850.27). SalesTaxHandbook has detailed information about Hungary's VAT refund program:Learn More About Hungary VAT Refunds
Hungary Tax Sources & Citations
- EN: Hungary Value Added Tax
- RU: НДС Венгрия
- CN: 匈牙利 增值税
- Hungary Ministry for National Economy (1)
- Ernst & Young global VAT tax study, Hungary (updated 2023)
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