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It is important that the correct Hungarian VAT rates are used in accounting records and on invoices as companies are held directly liable for any errors. The European Union does set the framework for the use of VAT rates, but countries are still free to set their own headline rates.
The current Hungarian VAT rates are:
Hungary VAT rates | ||
Rate | Type | Which goods or services |
27% | Standard | All other taxable goods and services |
18% | Reduced | Certain foodstuffs; some take away food; admission to certain open-air concerts |
5% | Reduced | Certain foodstuffs; pharmaceutical products (intended for human use); some medical equipment for disabled persons (excluding repair); books (excluding e-books); newspapers and periodicals; some social housing; district heating; some supplies of new buildings; restaurant and catering services (food prepared on site and non-alcoholic beverages); internet access services; certain writers and composers services; accommodation services from hotels, B&B and house sharing |
0% | Zero | Intra-community and international transport |
Once in possession of a Hungarian VAT number, there are compliance rules which must followed on accounting and VAT rates. These includes:
When providing local supplies under a Hungarian VAT number, companies are required to follow local accounting and tax rate rules. These include:
The tax point (time of supply) rules in Hungary Republic determine when the VAT is due. It is then payable to the tax authorities 20 days after the VAT reporting period end (monthly or quarterly).
For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.
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