Consumption/VAT/Sales Tax in Hungary
Accounting (0) , Consumption/VAT/Sales Tax (1) , Corporate Tax (0) , International Tax Treaties (0) , Personal Tax (0)
Overview by Globlatrade.net:
- Nature of the Tax
- ÁFA : Általános Forgalmi Adó
- Standard Rate
- Reduced Tax Rate
- A 5% rate applies to pharmaceuticals and certain medical equipment, aids for the blind, books and newspapers. A 18% rate applies to hotel and basic foods.
- Exclusion From Taxation
- The conditions of the subjective tax exemption are: national seat or domicile and the income of the previous year is under 4 million HUF. The types of the objective tax exemptions are listed in Annex 2 of the VAT Act.
- Method of Calculation, Declaration and Settlement
- Since the VAT is only paid after the value added, the paid VAT can be deducted from the received VAT if the product or service is used for manufacturing other products or providing other services (with some exemptions listed in Section 33 of VAT Act). Generally, companies should submit VAT returns quarterly. However, depending on prior years’ revenues from the sale of goods and provision of services some companies may need to submit their VAT returns yearly or monthly. For more information, you can consult the Hungarian Tax and Financial Control Administration's website.
- Other Consumption Taxes
- Excise tax is levied on items such as alcoholic beverages, petrol and tobacco products.
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