Foreign companies may register for VAT in Hungary without establishing a local company or branch, in what is known as non-resident VAT trading. In that case, the company receives a Hungarian VAT tax number, which must be obtained before the commencement of taxable transactions. There is no VAT threshold for registration of non-resident VAT trading.
VAT registration is required in certain situations, including:
• Buying and selling goods/services in Hungary
• Importing goods/services into Hungary from outside the EU
• Acquiring goods/services from other EU member states into Hungary
• Organizing events, conferences, etc in Hungary where attendees must pay admission
• Holding inventory in Hungary as stock for resale
• Distance selling to consumers (threshold within Hungary is EUR 35,000 per year).
Foreign companies can register not only for VAT but for all taxes. Hungarian tax authorities will require submission of registration forms and proper documentation (in Hungarian), including:
• Articles of association
• Excerpt from the company’s national trade register
• Copy of VAT certificate if the company is registered for VAT in another EU member state
• Statement regarding the company’s business
• Power of attorney
• Original specimen signature of the company’s representatives