Standard VAT rate: 27% (Jan 2012)
Reduced VAT rates: 18% foodstuffs, hotels
Reduced VAT rates: 5% books, pharmaceuticals, medical
Should you register for Hungarian VAT
If a foreign company is selling goods or services in Hungary, then it may have to VAT register as a non-resident VAT trader. Typical examples of where this is required include:
- Importing goods into Europe through Hungary.
- Intra-community sales (dispatches) or purchases (acquisitions) of goods from another European Union member state.
- Buying and selling goods in Hungary, known as domestic supplies.
- Storing goods under consignment stock arrangements in Hungary for sales to local customers.
- Sales over the internet to Hungarian consumers, subject to a local distance selling threshold.
- Holding live events, exhibitions etc with paid admission on the door
- If a company is otherwise a non-VAT trader, but is receiving services in Hungary under the reverse charge rule.
- The self supply of goods.
After the implementation of the 2010 EU VAT packager, there are now very limited circumstances where a foreign business supplying only services must VAT register in Hungary.