The tasks of the National Tax and Customs Administration of Hungary regarding the VAT-exempt sales of products transported by foreign travellers from the territory of the European Union
Products purchased by foreign travellers are VAT-exempt if they are transported
from the territory of the European Community as part of their luggage.
Conditions for VAT-exempt sales:
A foreign traveller is a natural person who is not the national of any of the member states of the European Union and, furthermore, does not have the right of permanent residence in any of the member states of the European Union, or is a European Union national whose domicile falls outside the European Union. Domicile is a place that serves for permanent residence and the personal and economic relationships of the natural person with this domicile are the closest. Travellers shall possess a valid travel document or any other valid authentic instrument certifying personal identity, recognised by the Republic of Hungary.
Upon exiting, besides certifying their identity, travellers shall present the product purchased, as well as the tax reclaim form (in two copies) and the original invoice.
Data contained in the tax reclaim form and in the invoice may not vary from personal data contained in the travel document. One tax reclaim form may only contain the product sale data of one invoice and data contained in the invoice must not vary from the data contained in the tax reclaim form.
The customs authority may only certify the tax reclaim form at the foreign traveller’s request upon his/her exit to a third country.
The use of the tax reclaim form is mandatory. This form is issued by the seller of the product in 3 copies and the first two copies shall be handed over to the foreign traveller. When certifying the traveller’s exit, the customs authority shall withhold from him/her one copy of the tax reclaim form and one copy shall be handed over to the foreign traveller.
If a foreign traveller does not leave Hungary directly to a third country (for example, he/she travels to Vienna and then from there he/she will fly back home to his/her domicile outside of the European Union), he/she shall request that the customs authority certify that the product has left the territory of the European Union upon exit from the European Union (in our case at the Vienna airport).
Tax refund may be requested from the seller of the product by the foreign traveller in person or through an authorised representative acting on his behalf. If a foreign traveller acts on his own behalf, he/she shall present his/her travel document, and if he/she does not act in person, his /her authorised representative shall enclose a written authorisation made out to his/her name.
In order to receive tax refund, the foreign traveller or his/her authorised representative shall hand over to the seller of the product the endorsed and stamped first copy of the tax reclaim form and present the original copy of the invoice certifying the performance of the sale of the product.
Foreign traveller s shall be entitled to tax refund in HUF, payable in cash by the seller of the product.