The deadline for submitting foreign VAT refund applications is approaching

You only have a few weeks left to submit applications for a refund of VAT paid in Hungary as foreign company. Refund applications for VAT paid in 2022 can be submitted only before 30 September 2023, which deadline is preclusive.

If you had paid invoices with Hungarian VAT during 2022, it is possible to ask for a refund with deadline 30 September 2023.

As non-EU countries, the taxpayers from Lichtenstein, Norway, Switzerland, Serbia, Turkey and United Kingdom have the option to ask for the refund of VAT in Hungary. In case of companies from Turkey, the VAT refund right is only valid in case of freight forwarding services, freight costs, and products and services purchased for the purpose for exhibitions, fairs.

What conditions apply?

The submission of an application shall be subject to:

the applicant is considered to be a foreign taxable person in Hungary
is not economically established in Hungary at the time of the application, and
there were no transactions carried out in Hungary during the period of the application.

It is also stipulated that the goods or services in respect of which the refund is requested are used for the taxable economic activity of the taxpayer. A taxpayer who is not entitled to deduct VAT, is not entitled for filing the VAT refund claim.

The minimum threshold for invoices included in the refund is EUR 250 in case of fuel, in case of any other products or services minimum EUR 1.000. If you would like to ask for the refund of VAT, you are obliged to file a VAT refund claim for the Hungarian tax authority. The VAT refund claim must include all the invoices in the claim.

Based on our experience, communication with the applicant is not smooth, which can even lead to the loss of the VAT to be refunded due to relatively short deadlines. We stay at your availability if you would like to submit the VAT refund claim for the tax authority.

Címkék: foreign VAT refund application, VAT, VAT refund

Date: 30. August 2023 | Topic: Taxation Taxation

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The above summary is provided for information purposes only. We recommend that you consult our experts before making any decision based on this information.

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