VAT refund for taxpayers not established in Hungary

Foreign undertakings are eligible for VAT refund in Hungary if their purchases made in Hungary serve the purpose of a taxable activity and they are established in the EU or if refund is made possible under an international agreement.

Kulcsszavak: VAT refund request, claim payment right to deduct VAT ban on deduction

The following may not apply for a VAT refund:

 

Ban on certain goods and services:

The law establishes exceptions from these restrictions, for example in the case of purchase for resale.

 

Other conditions of refund: foreign taxpayers may not sell goods or render services the place of supply of which is in Hungary, except:

Procedure

The procedure of VAT refund depends on which country the taxpayer is registered in as taxpayer:

Applications can be submitted in Hungarian, English, German or French.

 

Information to be stated in your application:

 

If the VAT base for fuel is below the HUF equivalent of EUR 250 or, in other cases, of EUR 1000, you are not required to attach the documents listed above.

 

Your application must refer to the input tax charged in the VAT refund period.

 

Refund period and minimum amount of payment:

You can submit no more than 5 requests in a calendar year.

 

Requests are considered in 4 months. If the taxpayer, another authority or a third party is asked to provide additional information by the National Tax and Customs Administration, the time limit is 8 months. Clients must comply with the request to provide additional information in 1 month.

The National Tax and Customs Administration may ask for the original invoice/document or a certified copy thereof which it will return to the taxpayer once the procedure is completed.

 

The tax authority will reject the your claim if you fail to provide identification data or activity codes or do not meet the conditions pertaining to the taxpayer.

 

Decision deadline: 2 months following the receipt of the reply to the tax authority’s request or expiry of the deadline.

The National Tax and Customs Administration sends the decisions to taxpayers by electronic means.

Appeals must be lodged directly with the National Tax and Customs Administration of Hungary by electronic means.

 

Payment deadline: 10 working days following the approval of the claim.

Refunds are paid by bank transfer the costs of which are borne by the taxpayer if the refund is credited to a foreign bank account. You must declare in writing if you want the refund to be paid to a third party.

The tax authority pays default interest in case of late payment.

 

In case the amount previously claimed changes (e.g. due to the change of the rate of use), the taxpayer must make corrections. You can do so in your next application or in a declaration for which no specific form exists.

 

Correspondence is primarily electronic unless the tax authority asks for an original document.

 

You are required to pay back your VAT refund if you had no legal grounds to claim it or received it in violation of the law.

 

Taxpayers can appoint an agent to act on their behalf (in this case, you must attach the power of attorney to your application).

EU MS taxpayers: according to the rules of their MS, but not later than 30 September of the following year.

Country party to a convention: 30 September of the following year.

Applications submitted after the deadline are rejected without consideration.

EU: form used by the MS of the applicant

Countries party to a convention: IAFA-K (VAT refund for non-resident taxpayers and non-taxable legal entities registered in another MS)

 

General Form-filling Software (ANYK)

https://nav.gov.hu/nav/letoltesek/nyomtatvanykitolto_programok

The procedure is free of charge. The costs of bank transfer are borne by the taxpayer if a foreign bank account is provided.

Large Taxpayer's Tax and Customs Directorate of the National Tax and Customs Administration of Hungary

Large Taxpayer's Tax and Customs Directorate of the National Tax and Customs Administration of Hungary

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