Registration obligation:

The delivery of goods by the operator in Hungary is subject to VAT, which means that he must apply for a tax number in Hungary. A foreign entrepreneur can apply for a tax number in any tax district or metropolitan tax directorate and in the Tax and Customs Directorate of Large Taxpayers of the National Tax and Customs Administration, prior to the first sale.

The application for assigning a NIP number must be completed by a foreign entity, and the completed form should be submitted to the above-mentioned Organ. If the operator is a natural person, complete the main sheet of form T1013 as appropriate and pages A01, A02 and F01 of the form to be used in the year of registration. In the case of a business association, complete the home page of form T2014 to be used in the year of registration and pages A01, A02 and F01 accordingly. (In some cases, other pages must also be completed for both forms.)

A foreigner can legally sell it at Hungarian marketplaces etc. During this time, from which he obtained the tax number indicated above.

Obligation to issue accounting documents:

The foreign entrepreneur is obliged to issue an accounting document of the sale made in Hungary; the first copy of the accounting document will be given to the buyer.

If the buyer, the foreign seller is not a VAT payer, but eg a natural person (usually this is the case), it is enough to issue a sales receipt. A receipt is an accounting document that has a serial number issued by the Hungarian tax authority. Such a receipt with a serial number issued by the Hungarian tax office is available from a store distributing printed paper in Hungary. In the course of the sale, the receipt must indicate the date of issue, the name and address of the foreign trader and the tax number for which we are applying in Hungary and the increased value of the VAT meter of the goods sold, and the completed receipt must be provided to the buyer.

In Hungary, the buyer may also ask for a more detailed document, the so-called An invoice instead of a receipt from the seller. If the buyer requests an invoice at the time of sale, the seller must issue an invoice instead of a receipt. The invoice can be in paper or electronic form. As with sales at fairs, markets, exhibitions, electronic invoicing is not typical, so here we only deal with paper invoices. Issuing a paper invoice can be done in two ways: using a computer invoicing program or a handwritten invoice. From the moment a foreigner issues an accounting document at fairs, exhibitions, in practice, it is handled manually, so here we will only look at the rules of a handwritten invoice. A handwritten invoice is an accounting document that has a serial number issued by the Hungarian tax authority. In Hungary, such a printout of the invoice is available from stores distributing printed matter. Name and address as well as the Hungarian tax number of the issuer, name and address of the buyer, invoice date, delivery date (if different from the date of issue), product designation, quantity unit, unit price excluding tax, quantity sold, tax base, VAT tax, rate tax should be indicated on the invoice.

If the buyer of the foreign market informs the foreign trader that he is a Hungarian entity subject to VAT, then the foreign seller cannot fulfill his obligation to issue a receipt. It can only issue an invoice. The rules for issuing an invoice to a taxpayer are the same as those described for non-taxable buyers.

Obligation to pay VAT:

There are currently three tax rates in Hungary: the general tax rate is 27% and the preferential tax rate is 18% and 5%. In addition, the Hungarian VAT system also includes tax-exempt cases.

Most of the products sold at fairs and exhibitions are subject to a tax rate of 27%. Certain dairy and bakery products, food trade in catering and trade in locally produced soft drinks are subject to a preferential tax rate of 18%, and certain books and magazines, certain newspapers, – and meat products are subject to a preferential tax rate of 18% or 5% . 

A foreign entrepreneur is obliged to pay the equivalent of VAT in the amount of 21.26% of the gross purchase price of sold products in the case of a tax rate of 27%, the equivalent of 15.25% of the gross purchase price of sold products. for the 18% tax rate and the VAT equivalent of 4.76% of the gross purchase price of the products sold for the 5% tax rate for Hungarian public finances.

VAT on products sold by a foreign company in Hungary should be determined as follows for Hungarian public finances. When selling its products in Hungary, the foreign company is obliged to submit a VAT declaration no. 658, by indicating the Hungarian tax number for which he applied, the total amount of VAT of the purchase price of all the products he sells is entered in the tax return. However, if a foreign seller has purchased goods or received services as part of a goods activity in Hungary (for example, he has paid a stopover or market rent) and if the invoice received on the purchased product and services includes the input tax received, the foreign trader may indicate as a so-called deductible VAT at the time of completing the tax return. So,

VAT returns should be submitted in the year of using the tax number and in the following year on a monthly basis. However, depending on the sales value limit, in the longer term, the reporting frequency of a foreign trader may be annual or quarterly.