BPO AUDIT TAX

VAT Registration for Foreign Companies

Multinational companies not required to be established in Hungary but whose activities are taxable and cannot fulfill their tax obligations in Hungary with the application of foreign reverse charge may, instead of establishing a company or branch, fulfill such an obligation through a tax registration procedure.

In each case, it should be considered whether the company actually needs and can have VAT registration, and whether the establishment of a Hungarian branch or company can really be avoided. We help our clients navigate through legal requirements and help them make the best decision for the company.

VAT registration in Hungary The benefits of VAT registration:

  • VAT registration does not require the establishment of a company or branch in Hungary.
  • There will be no income tax liability due in respect of the activity of the company in Hungary.
  • There is no need to prepare a transfer pricing documentation for transactions with the Hungarian subsidiary.
  • Apart from the administrative requirements for VAT registration (of which we inform our clients), there is no need to know or comply with any legal requirements other than those applicable to a Hungarian company or branch.
  • There is no need to hire employees for the administrative tasks or rent an office, for example, so it is also a more cost-effective solution.
  • The exposure of Hungarian activities to Hungarian legislative changes is much lower.

Although the VAT registration and tax filing process is not complicated, it requires proficiency in Hungarian legislation and the knowledge of administrative procedures (language barriers, intervention with official bodies…). VAT registrants are required to file a VAT return from the date of registration, which is subject to the same rules and deadlines as in the case of other Hungarian taxpayers and, among other things, the invoices VAT registrants issue shall also comply with the requirements of Hungarian law.

Using our VAT registration service, the registration process can be shortened (with properly organized documents and good communication the process takes about two weeks) and returns will be filed according to Hungarian legislation.


The VAT registration service of BPO for foreign companies includes:

1. VAT registration

  • Information on how to register
  • Full administration of VAT registration
  • Requesting, collecting, and collating data and coordinating the entire registration process

We also provide VAT registration services to companies where the VAT registration process has already been completed and continuous monthly and quarterly processes are to be performed.

2. Ongoing tasks after registration:

  • Processing and checking the materials received,
  • Preparing and filing VAT returns after checking the materials,
  • Sending information about taxes to be paid or which can be recovered,
  • Drawing attention to and informing about domestic rules in connection with documents and invoices,
  • Communicating with the tax authority,
  • Providing information continuously about local legislative changes.

 

Why choose BPO

  • We have a decade of experience in VAT registration in Hungary.
  • As a member of MGI Worldwide network, we are able to provide our clients with a Europe-wide service with our partner companies.
  • Our professionally trained employees have processes for both registration and tax filing tested and developed for years.
  • If your company is subject to VAT registration in several countries or already has a number of VAT registrations across Europe and needs to comply with local regulations in several countries, we can assist you with local VAT regulations (e.g. tax rates, exemptions, invoicing rules, etc.).
  • We communicate with the tax authority, of which we keep our clients informed.


The VAT registration service of BPO:

  • professionalism, up-to-date legislative knowledge, highly qualified working groups
  • continuous availability
  • communication in English as well
  • digital data processing
  • compliance with deadlines
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