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Fiscal representation

A company whose headquarters are outside the EU (“non-EU companies”, therefore UK businesses included) is obliged to register for tax purposes in Hungary by appointing a fiscal representative.

We meet all the requirements set by law to be a fiscal representative for your company in Hungary in order to fulfill your company’s tax obligations.

In Hungary, appointing a fiscal representative is a legal obligation for all companies established outside of the EU that perform some specific taxable operations.
The operations below need to be verified case by case to define if the appointment of the fiscal rep is needed:

  • Importation of goods from countries outside the EU to Hungary
  • Exportation from Hungary to countries outside the EU
  • Purchases of goods supplied in Hungary from EU member states
  • BtoB supplies of goods from Hungary to EU member states (the optional reverse-charge mechanism of Article 194 of Directive 2006/112/EC applies under specific conditions)
  • BtoC supplies of goods and services to Hungarian individuals, including via marketplaces and commerce by mail (the threshold for distance selling is HUF 12,000,000)

We represent companies in completing the tax registration process and provide all the associated tax compliance services during the course of the engagement and, if necessary, also provide tax advisory services for the company being represented.

Failing to appoint a tax representative is heavily punished by European tax authorities and makes companies ineligible for VAT refunds.

As a tax registered company, we will be your local representative, managing queries and filing obligations for dealing with the tax authorities.

As part of our fiscal representation service, we take charge of your VAT registration and your VAT
by performing the following duties:

  • VAT registration
  • VAT settlement
  • Maintaining VAT records (recording of daily fees for active invoices for B2C transactions and record of passive invoices)
  • Storing VAT documentation
  • Representation in tax matters before the tax authorities
  • Contacts with the tax authorities.

Besides offering our clients advice on the VAT management of their transactions in Hungary, we also provide them with guidance on the related risks and advice on avoiding penalties arising from different interpretations of the new EU/Hungarian VAT law.

Additionally, since the fiscal rep is jointly liable for the trader’s taxes, it is industry practice to require a security deposit or bank guarantee in favor of the fiscal representative to mitigate against potential risks if the company reneges on any liabilities.

Our legal partner, Lajos Law Firm, is always available for any consultation or piece of advice.
ITL Group applies an excellent understanding of business realities, especially in terms of securing VAT risk.
Contact our team to learn about its full, in-house fiscal representation services in Hungary.

Let our experts help you and together we will find the perfect solution that tackles the potential risks.

Our work is based on the principles of assessing the tax risk of the transactions you intend to carry out by verifying the information through careful analysis and by ensuring that all your tax obligations are fulfilled.

Risk is part of an entrepreneur’s life, but with the help of our experts, we will analyse together the most suitable solutions for your business.

Meet our Head of Division

Veronika Lázár

ITL Tax advisor Head of Department

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