VAT Registration in Hungary

First, 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 make the best decision for the company. 

If you want VAT registration but not in Hungary, the members of our international network will certainly help you.  

Global VAT

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. 
  • No employees have to be hired 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 process and filing of tax returns are not complicated, they require proficiency in Hungarian legislation and the knowledge of administrative procedures (language barriers, intervention with official bodies, etc.). 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. In addition, among other things, the invoices VAT registrants issue shall comply with the requirements of Hungarian law. 

By 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 in accordance with Hungarian legislation. 

Our VAT registration service for foreign companies includes: 

1. VAT registration

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

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

2. Ongoing tasks after registration:

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

Why MGI-BPO? 

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

The VAT registration service of MGI-BPO 

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