Reclaiming VAT for foreigners in Hungary

 Businesses from countries outside the EU do not have to waive Hungarian VAT either!

In our previous newsletters, we have already discussed the cases when Hungarian companies want to reclaim foreign VAT, as well as the Hungarian VAT refund process for companies established in other Member States of the European Union.  Among third countries, businesses from the United Kingdom, Switzerland, Liechtenstein, Norway, Turkey and Serbia can claim Hungarian VAT back until September 30!

Businesses from certain non-EU countries that are not established in Hungary also have the option to claim back the Hungarian VAT passed on to them by September 30. The right to reimbursement does not automatically apply to all foreign companies, only companies established in a so-called recognized third country. Recognized third countries are countries with which Hungary has a bilateral reciprocity agreement in force or has concluded a separate international agreement on reimbursement. Recognized third countries are the United Kingdom, the Swiss Confederation, the Principality of Liechtenstein, the Kingdom of Norway, the Republic of Turkey and the Republic of Serbia.

In the VAT refund procedure, it is mandatory to use a Hungarian representative, the foreign company cannot act personally before the Tax Authority.

A number of attachments must be attached to the application, the collection of which is a time-consuming process, so the affected businesses must act immediately if they do not want to miss the deadline.

12 September, 2024

*.*.*

If you have any questions about this newsletter or international VAT matters,
please feel free to contact our tax advisor colleagues!

VGD provides effective support with personalized tax legal advice,
full financial administration management, and continuous monitoring of legislative changes
so that your business complies with all tax and financial regulations.

This newsletter provides general information and does not constitute advice.