1. Which business expenses are generally eligible for VAT refunds in Hungary?

The following expense types would generally be reclaimable for VAT in Hungary if incurred for business purposes: hiring of means of transport; 50% of vehicle repairs; accommodation, admissions to trade fairs and exhibitions, and general business expenses (e.g., office expenses, professional fees etc).

2. Are original invoices required to reclaim VAT in Hungary?

For Hungary VAT refunds under the 8th Directive, original invoices are not required, and scans or photocopies can be submitted. For Hungary VAT refunds under the 13th Directive, original invoices must be submitted to the Hungary VAT Authority.

3. Can businesses still reclaim VAT in Hungary if the invoice contains errors?

Generally, invoices that contain errors are not eligible for a refund of Hungary VAT. However, VAT IT can assist with this service to help obtain compliant invoices for submission in a refund of Hungary in VAT.

4. How are Hungary VAT refund applications submitted?

Hungary VAT refunds under the 8th Directive must be submitted electronically through the digital portal of the claimant’s Member State of Establishment. Hungary VAT refunds under the 13th Directive must be submitted in physical (hard copy) format directly to the Hungary VAT Authority.

5. Who is eligible for a VAT refund in Hungary?

Entities that are not registered for VAT in Hungary and that do not have an Hungarian VAT number, and that do not carry on activities subject to VAT in Hungary would be eligible to claim, provided that they are established in a country in the EU or in a country with which Hungary has signed reciprocal agreements.

6. What documentation is necessary for VAT refund claims in Hungary?

For Hungary VAT refunds under the 8th Directive, the submission will be made electronically via the portal managed by the entity’s Member State of Establishment, and only documents (if applicable – e.g., if you have appointed VAT IT as your agent), along with copies of the applicable invoices need to be submitted. For Hungary VAT refunds under the 13th Directive, the submission will be made in hard copy to the Hungary VAT authority and should include agent-related documents (if applicable) as well as valid tax certificates, completed claim forms, proof of banking details, original invoices and proof of payment of these invoices.