However, if all incoming invoices, regarding which the VAT was deducted in the VAT return, are settled (paid fully to the suppliers) by the due date of the related VAT return, a 30-day deadline can be applied, and a deadline of 45 days might be considered if the amount to be transferred exceeds HUF 1 million. If a taxpayer has a negative VAT balance in a VAT period, the amount can be recovered, provided that the VAT balance reaches or exceeds an absolute value of HUF 1 million for monthly filers, HUF 250,000 for quarterly filers, or HUF 50,000 for annual filers.Īs a general rule, the deadline for remitting VAT reclaims is 75 days, irrespective of the amount concerned. VAT deduction is available only for the business-related element of purchases that were made partially for non-business purposes.
Reverse-charge mechanismĪ domestic reverse charge applies between Hungarian taxable persons for the following activities: These include the acquisition of any contributions in kind, the acquisition of any assets by way of succession, and the transfer of business as a going concern. There are some special transactions that may be out of scope of the Hungarian VAT, provided that special conditions are met. VAT exemption cannot be applied to the supply of building plots. An option is available to apply VAT on the supply or rental of this real estate. Generally, the supply of a building or parts of a building, the land on which it stands, and the rental of real estate are VAT exempted.
The intra-Community supplies of goods, services, and exports are also treated as exempt transactions. VAT exemption is also available for financial and insurance services. Exempted, out of scope transactionsĬertain services are exempt from VAT, including, but not limited to, medical, cultural, sporting, and educational services provided as public services.
#Financial transaction tax registration
Given that some further conditions of the VAT Act are met, the reduced rate will be applicable for a longer period of time (until 31 December 2026) considering that the Building and Construction Authority issues a final confirmation by 31 December 2022 or the simplified registration procedure of the construction was initiated by 31 December 2022. The reduced 5% VAT rate on the supply of new residential property will be applicable between 1 January 2021 and 31 December 2022. meals and non-alcoholic beverages prepared locally in bars and restaurants), fish for consumption purposes, and the edible by-products and meat offal of domestic swine. live and processed large animals, such as pig, sheep, goats, cattle, poultry, eggs), fresh milk, internet access services, local dining services (i.e. The 18% VAT rate is also applicable to commercial accommodation services and to services that grant admission to musical and dancing events.Ī reduced VAT rate of 5% is available for new residential property, certain pharmaceutical products, audio books, printed books, newspapers, district heating services, certain live performance activities, certain products of the animal sector (e.g. certain milk, certain dairy products, products made from cereals, flour, and starch). VAT ratesĪ reduced VAT rate of 18% is applicable for some products (e.g.
VAT is also payable on the importation of goods, on the intra-Community acquisitions of goods, and on the purchase of certain services provided to Hungarian taxable persons by foreign taxable persons. VAT is payable on sales of goods and the supply of services.
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