VAT REGISTRATION IN HUNGARY
From 1 May 2004, with Hungary’s accession to the EU, our Hungarian domestic law adopted the provisions of the EU’s so-called Sixth VAT Directive. As a consequence of the harmonisation of the individual member states’ VAT systems to the EU law, it became possible to use the concept of the so-called intra-Community transactions introduced in the European Union, instead of the traditional export-import transactions, furthermore, the application of the reverse charge system became popular in order to avoid double taxation and for the sake of simplification.
As a consequence of the uniform system, a wide range of activities can be performed under a VAT registration, without being obliged to be established in Hungary, which is an extremely cost-efficient solution concerning the administration. However, the determination of the fixed establishment or the place of supply for VAT purposes many times causes serious problems related to legal interpretation, due to the “framework law” nature of the Directive and the national laws. More accurate answers can be obtained on the basis of the experiences obtained during practical application and via the secondary regulatory function of legal (court) cases. Our tax consulting team has many years of international practice in this field, and we are ready to use our knowledge to assist you.
The information on this website are indicative data. It shall not be considered as advise.
