Two weeks left to reclaim the VAT paid in abroad

Only until 30 September it is possible to reclaim VAT paid in abroad for the calendar year 2019. We have already written about the most important rules of the process in our previous newsletter, in this newsletter we would like to provide you about some new, mainly practical information.

The application of the reclaim can be submitted using the so-called ELEKÁFA form of the Hungarian Tax Authority’s ‘General Form Filler’ (abbreviated in Hungarian as ÁNYK) program. However, we would like to emphasize that you should make sure that you work with the latest version, as an otherwise flawless application may be rejected if it is not submitted using the latest available form. Although this error can be corrected by 30 September, it is not possible for last-minute applications.

We would also like to emphasize that according to the Hungarian VAT Act, it is not the date of issuance of the invoice, but the date of performance that determines in which application period can be reclaimed the amount of VAT belonging to the invoice in question. Thus, the amount of VAT paid in abroad on an invoice issued on 23 January 2020 but with a performance date of December 2019 can only be reclaimed until 30 September 2020. In addition, this deadline is invalid, in connection with which the Hungarian Tax Authority does not accept any request for certification. We recommend that you make sure to check your invoices for this as well, to avoid neglecting the submission deadline.

In our previous newsletter, we pointed out that the rules of the Member State concerned is authoritative in all cases when reclaiming the VAT paid in abroad. For example, the VAT on petrol used for a personal vehicle cannot be reclaimed in any form in Hungary, but in Germany, the VAT paid on fuel purchased for a personal vehicle can be reclaimed, provided that the appropriate certificates are in hand.

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Reclaiming the VAT paid abroad can be a complicated process with many pitfalls, so in some cases, especially when the sum of the amount is significantly large, it is strongly recommended to involve an expert in the reclaiming procedure. VGD Hungary’s experienced tax advisors are also at your disposal when reclaiming VAT paid in abroad.