National Tax and Customs Administration of Hungary - Guidelines, summaries on taxation

Guidelines, summaries on taxation

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<article contentid="5424712">
<title>Issuing tax residence certificates</title>
<url>taxation/taxinfo/Issuing_tax_residence20200924.html</url>
<starttime>
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<year>2020</year>
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<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Information on the issue is downloadable hereunder.
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords></seckeywords>
</article>
<article contentid="5424710">
<title>Tax authorities tackling tax issues of foreigners</title>
<url>taxation/taxinfo/Tax_authorities_tackl20200924.html</url>
<starttime>
<timestamp ms="1600934520000">
<year>2020</year>
<month>9</month>
<day>24</day>
<dayofweek>5</dayofweek>
<hour>10</hour>
<minute>2</minute>
<sec>0</sec>
</timestamp>
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<minute>22</minute>
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</timestamp>
</moddate>
<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Hereunder you will find the information in the downloadable file. 
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords></seckeywords>
</article>
<article contentid="5424708">
<title>A short summary on the taxation of business associations</title>
<url>taxation/taxinfo/A_short_summary_on_th20200924.html</url>
<starttime>
<timestamp ms="1600932120000">
<year>2020</year>
<month>9</month>
<day>24</day>
<dayofweek>5</dayofweek>
<hour>9</hour>
<minute>22</minute>
<sec>0</sec>
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<minute>22</minute>
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</timestamp>
</moddate>
<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Please find the relevant information hereunder. 
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords></seckeywords>
</article>
<article contentid="5424704">
<title>Income from the transfer of real properties and of rights in immovables</title>
<url>taxation/taxinfo/Income_from_the_trans20200924.html</url>
<starttime>
<timestamp ms="1600930260000">
<year>2020</year>
<month>9</month>
<day>24</day>
<dayofweek>5</dayofweek>
<hour>8</hour>
<minute>51</minute>
<sec>0</sec>
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</timestamp>
</moddate>
<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Please find hereunder the information file. 
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords></seckeywords>
</article>
<article contentid="5424510">
<title>Accounting of costs related to the operation of vehicles</title>
<url>taxation/taxinfo/Accounting_of_costs_r20200917.html</url>
<starttime>
<timestamp ms="1600335780000">
<year>2020</year>
<month>9</month>
<day>17</day>
<dayofweek>5</dayofweek>
<hour>11</hour>
<minute>43</minute>
<sec>0</sec>
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<year>2020</year>
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<dayofweek>5</dayofweek>
<hour>16</hour>
<minute>2</minute>
<sec>35</sec>
</timestamp>
</moddate>
<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Please find the relevant information in the attached file.
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords></seckeywords>
</article>
<article contentid="5424508">
<title>Taxation of private persons in 2020 (summary)</title>
<url>taxation/taxinfo/TAXATION_OF_PRIVATE_P20200917.html</url>
<starttime>
<timestamp ms="1600335300000">
<year>2020</year>
<month>9</month>
<day>17</day>
<dayofweek>5</dayofweek>
<hour>11</hour>
<minute>35</minute>
<sec>0</sec>
</timestamp>
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<year>2020</year>
<month>9</month>
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<hour>16</hour>
<minute>2</minute>
<sec>35</sec>
</timestamp>
</moddate>
<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Please refer to the attached document.
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords></seckeywords>
</article>
<article contentid="5424506">
<title>Taxation of income from the transfer of real properties and movables</title>
<url>taxation/taxinfo/Taxation_of_income_fr20200917.html</url>
<starttime>
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<year>2020</year>
<month>9</month>
<day>17</day>
<dayofweek>5</dayofweek>
<hour>11</hour>
<minute>15</minute>
<sec>0</sec>
</timestamp>
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<year>2020</year>
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<hour>16</hour>
<minute>2</minute>
<sec>35</sec>
</timestamp>
</moddate>
<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Please consult the attached file for the details.
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords></seckeywords>
</article>
<article contentid="5402786">
<title>Social security contribution and social contribution tax payable from 1 July 2020 by foreign businesses (undertakings) not required to register under Hungarian law</title>
<url>taxation/taxinfo/Information_for_forei20190625.html</url>
<starttime>
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<day>17</day>
<dayofweek>5</dayofweek>
<hour>11</hour>
<minute>1</minute>
<sec>0</sec>
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</timestamp>
</moddate>
<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Please consult the attached document for the details.
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords></seckeywords>
</article>
<article contentid="5424503">
<title>Social Security Contributions payable in 2020</title>
<url>taxation/taxinfo/Social_Security_Contr20200917.html</url>
<starttime>
<timestamp ms="1600332060000">
<year>2020</year>
<month>9</month>
<day>17</day>
<dayofweek>5</dayofweek>
<hour>10</hour>
<minute>41</minute>
<sec>0</sec>
</timestamp>
</starttime>
<moddate>
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<year>2020</year>
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<hour>16</hour>
<minute>2</minute>
<sec>35</sec>
</timestamp>
</moddate>
<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Please consult the attached file for the required information.
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords></seckeywords>
</article>
<article contentid="5424280">
<title>VAT liabilities of foreign marketers in Hungary</title>
<url>taxation/taxinfo/VAT_liabilities_of_fo20200911.html</url>
<starttime>
<timestamp ms="1599818880000">
<year>2020</year>
<month>9</month>
<day>11</day>
<dayofweek>6</dayofweek>
<hour>12</hour>
<minute>8</minute>
<sec>0</sec>
</timestamp>
</starttime>
<moddate>
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<year>2020</year>
<month>9</month>
<day>15</day>
<dayofweek>3</dayofweek>
<hour>8</hour>
<minute>13</minute>
<sec>25</sec>
</timestamp>
</moddate>
<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Please find attached the relevant information. 
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords></seckeywords>
</article>
<article contentid="5423850">
<title>Information on duties related to the purchase of immovable properties </title>
<url>taxation/taxinfo/Information_on_duties20200907.html</url>
<starttime>
<timestamp ms="1599465660000">
<year>2020</year>
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<day>7</day>
<dayofweek>2</dayofweek>
<hour>10</hour>
<minute>1</minute>
<sec>0</sec>
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<hour>16</hour>
<minute>49</minute>
<sec>27</sec>
</timestamp>
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<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Please find the inforamtion herewith.
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords></seckeywords>
</article>
<article contentid="1835351">
<title>Amounts and rates of duties</title>
<url>taxation/taxinfo/Fees_charges_duties.html</url>
<starttime>
<timestamp ms="1599465540000">
<year>2020</year>
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<minute>0</minute>
<sec>18</sec>
</timestamp>
</moddate>
<expired>false</expired>
<lead>
<formatted-text></formatted-text>
</lead>
<body>
<formatted-text>
Please find the relevant information below.
</formatted-text>
</body>
<priority>100</priority>
<source>-</source>
<author>-</author>
<keywords></keywords>
<seckeywords>
<skword>nemhl</skword>
<skword>nemfriss</skword>
</seckeywords>
</article>
<article contentid="1835354">
<title>Tax exemption for the foreign traveller</title>
<url>taxation/taxinfo/VAT_foreign_traveller.html</url>
<starttime>
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<year>2020</year>
<month>3</month>
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<dayofweek>6</dayofweek>
<hour>8</hour>
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<sec>0</sec>
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<lead>
<formatted-text>

</formatted-text>
</lead>
<body>
<formatted-text>

VAT exemption on products sold to foreign travellers

Within the framework of export tax exemptions, the VAT Act, in line with the 
provisions of the VAT Directive
<link anchor="_ftn1">
<text>[1]</text>
</link>
, contains special rules for the exemption of the supply of goods, in relation 
to which a foreign traveller buys a product, which is transported from the territory 
of the European Community (hereinafter: Community)
<link anchor="_ftn2">
<text>[2]</text>
</link>
 as part of the personal luggage of the foreign traveller (Section 99 of the 
VAT Act lays down additional conditions relating to the applicability of the exemption 
set out under Subsection 1 of Section 98).

The following is a summary of the most important information regarding the VAT 
exemption of products sold to a foreign traveller.

<ul>

<li>Who is considered to be a foreign traveller?</li>

<li>What are the conditions for making a purchase?</li>

<li>What do you need to know about the tax refund application form?</li>

<li>For how long and how should the products concerned be exported from the territory 
of the Community?</li>

<li>What are the other conditions for tax exemption?</li>

<li>What do you need to know about personal and travel luggage?</li>

<li>How to claim tax exemption?</li>

<li>How to apply tax exemption in the framework of tax refund?</li>
</ul>

1. Who is considered to be a foreign traveller?

For the purposes of the VAT Act, foreign traveller
<link anchor="_ftn3">
<text>[3]</text>
</link>
 shall mean a natural person who is

<ul>

<li>

not a citizen of any Member State of the Community, and has no right of permanent 
residence in any Member State of the Community, furthermore, who 
</li>

<li>

a citizen of any Member State of the Community though, his/her permanent address 
is outside the territory of the Community. 
</li>
</ul>

With regard to the permanent address of the natural person, Point 11) of Section 
259 of the VAT Act and Articles 12-13 of the Implementing Regulation
<link anchor="_ftn4">
<text>[4]</text>
</link>
 must also be applied.

Point 11) of Section 259 of the VAT Act states that permanent residence shall 
mean the place of abode used for permanent habitation and with which the natural 
person has closer personal and economic ties (centre of vital interests), except 
if otherwise provided for by any binding legislation of the European Union.

Articles 12 and 13 of the Implementing Regulation provide as follows with respect 
to the permanent address and the habitual residence (where one usually resides):

“Article 12

For the application of Directive 2006/112/EC, the ‘permanent address’ of a natural 
person, whether or not a taxable person, shall be the address entered in the population 
or similar register, or the address indicated by that person to the relevant tax 
authorities, unless there is evidence that this address does not reflect reality.

Article 13

The place where a natural person ‘usually resides’, whether or not a taxable 
person, as referred to in Directive 2006/112/EC shall be the place where that 
natural person usually lives as a result of personal and occupational ties.

Where the occupational ties are in a country different from that of the personal 
ties, or where no occupational ties exist, the place of usual residence shall 
be determined by personal ties which show close links between the natural person 
and a place where he is living.”

2. What are the conditions for making a purchase?

<ul>

<li>

The total value of the consideration, including VAT, must be more than 175 euro 
or the equivalent in national currency.
<link anchor="_ftn5">
<text>[5]</text>
</link>
 The price of each product does not need to be higher than that amount, if the 
total price of the goods, stated on the same invoice is higher than EUR 175. In 
2020 the HUF amount of the limit expressed in EUR is calculated at the official 
HUF/EUR exchange rate published by the National Bank of Hungary (hereinafter NBH) 
on the first working day of October 2019, i.e. 1 October 2019, and the amount 
resulting from the conversion must be rounded to HUF 1000.
<link anchor="_ftn6">
<text>[6]</text>
</link>
 Consequently, in 2020 the limit in HUF is 59,000 Hungarian Forints.
</li>

<li>

The foreign traveller must be able to verify his legal status by producing a 
valid travel document or some other form of identification in the form of a document 
recognized by Hungary (hereinafter referred to collectively as “travel document”).
<link anchor="_ftn7">
<text>[7]</text>
</link>


</li>

<li>

The foreign traveller must ask for an invoice reflecting the supply of goods. 
The data of the identification of the foreign travellers on the invoice (and simplified 
invoice) and the VAT refund application form must be the same as the data contained 
in the travel documents of the foreign traveller.
<link anchor="_ftn8">
<text>[8]</text>
</link>


</li>

<li>

With a view to the implementation of exemption, the supplier of the goods fills 
out the VAT refund application form when so requested by the foreign traveller, 
of which two copies shall be handed to the foreign traveller, (the third shall 
be retained by the vendor).
<link anchor="_ftn9">
<text>[9]</text>
</link>


</li>
</ul>

3. What do you need to know about the tax refund application form?

The VAT refund application form must contain the following information:
<link anchor="_ftn10">
<text>[10]</text>
</link>

<ul>

<li>

name, address and tax number of the vendor; 
</li>

<li>

name and address of the foreign traveller (purchaser) and the number of his/her 
travel document (completed on the basis of the data contained therein);
</li>

<li>

number of the invoice made out on the supply of goods; 
</li>

<li>

total invoiced amount on the supply of goods, inclusive of VAT; 
</li>

<li>

a place where it can be signed and sealed in proof of exportation endorsed by 
the customs office of exit from the territory of the Community. 
</li>
</ul>

The VAT refund application form shall be printed in at least Hungarian, English, 
German, French and Russian languages, and shall be filled out in Hungarian, English, 
German or French languages.
<link anchor="_ftn11">
<text>[11]</text>
</link>
 A VAT refund application form is completed by the supplier of the goods, based 
on the data of the invoice or simplified invoice that certifies the purchase. 
One VAT refund application form may contain the data of one invoice only.
<link anchor="_ftn12">
<text>[12]</text>
</link>

A regular form provided or a form approved by the tax authority may be used as 
the VAT refund application form. The ‘VAT refund application form for foreign 
travellers’, introduced by the tax authority (i.e. VAT refund application form) 
and its completion guide may be obtained in large post offices and may be ordered 
to be delivered to any post office. If the vendor intends to use a VAT refund 
application form other than the form introduced by the tax authority, the form 
may be used, if it has previously been approved by the tax authority.
<link anchor="_ftn13">
<text>[13]</text>
</link>
 The VAT refund application form, used regularly by the vendor and approved by 
the tax authority must be available at the vendor.

4. For how long and how should the products concerned be exported from the territory 
of the Community?

The exemption may be applied to the supply of products or goods pursuant to Section 
99 of the VAT Act only if the customer exits the goods purchased in Hungary from 
the territory of the country, with the simultaneous presentation of the original 
copy of the invoice (or simplified invoice) to the customs authority, within 90 
days from purchase in his/her personal or travel luggage, and the customs office 
of exit from the Community certifies the exit by affixing its seal and endorsement 
on the VAT refund application.
<link anchor="_ftn14">
<text>[14]</text>
</link>
 The customs authority endorses the VAT refund application form only when the 
goods are transported to a country outside the European Union. Subsequent certification 
of exit on the tax refund application form may not take place. More than one VAT 
refund application forms may be endorsed in the course of one single customs procedure. 
(The customs authority shall withhold the second copy of the VAT refund application 
form, sealed and endorsed, from the foreign traveller.
<link anchor="_ftn15">
<text>[15]</text>
</link>
)

The VAT Act sets out as an additional condition for tax exemption with respect 
to the product that within the time limit of 90 days the goods supplied may not 
be used or consumed with the exception of sampling and trial production.
<link anchor="_ftn16">
<text>[16] </text>
</link>

5. What are the other conditions for tax exemption?

Even if other statutory conditions prevail, the supply of goods may be exempt 
from the tax pursuant to Section 99 of the VAT Act, only if the first copy of 
the VAT refund application form, certifying the exportation of the goods within 
the deadline, endorsed and sealed by the customs authority, is available at the 
vendor. In order to receive the tax refund, the foreign traveller (or his/her 
proxy) must return also his own copy of the invoice (or simplified invoice) to 
the vendor.
<link anchor="_ftn17">
<text>[17]</text>
</link>

6. What do you need to know about personal and travel luggage?

Given that the VAT Act does not define the concept of personal or travel luggage, 
nor is it defined in the VAT Directive or in the Implementing Regulation, the 
meaning of this term shall be construed in the light of its ordinary meaning. 
For the purposes of the ordinary meaning of the word, part of the luggage shall 
be considered to be a product which is supplied/exported on an occasional basis 
and which – due to the nature and quantity – is considered to be for private and/or 
personal use or for family purposes or for gift. In addition to this, it is also 
important that the procurement is of an occasional (ad hoc) nature and not of 
a commercial one.

The purpose of the tax exemption scheme for the supply of goods to a foreign 
traveller is to exempt goods carried (exported) in the course of passenger travel out of the Community and not, as a general rule, to exempt goods exported outside 
the Community. In Hungary, regarding export traffic, neither quantitative nor 
value thresholds/limits have been introduced in respect of goods exported by a 
foreign traveller, but based on the nature of the product and the overall circumstances 
of the case (e.g. regularity of the purchase, sequential delivery) certain cases 
may be excluded – according to the everyday interpretation of the meaning of personal 
or travel luggage – from the application of VAT exemption on the basis of Section 
99 of the VAT Act. Thus, no VAT exemption on the basis of Section 99 of the VAT 
Act may be granted, for example, in the case of a person – whose status is otherwise 
regarded as a foreign traveller – exporting a passenger car from Hungary outside 
the territory of the Community, given that the concept of personal and travel 
luggage and does not include a passenger car.

The following is important to be noted: the fact that tax exemption under Point 
b) of Subsection 1 of Section 98 and Section 99 of the VAT Act does not always 
apply to the export of goods during passenger traffic does not mean that the VAT 
exemption under Point a) of Subsection 1 of Section 98, that is to say, exports 
of goods in the classic sense, is not applicable.

This is true even if the buyer/purchaser is a non-taxable natural person who 
does not have a tax identification number (TIN), given that the buyer is not required 
to have a TIN to be exempt from tax on his/her sales outside the Community. However, 
in the majority of cases in the country of destination, that is to say, the country 
to which the product is shipped, this may result in the buyer having to pay import 
taxes or other public charges on the product in the country of destination. Thus, 
the supply of goods by a domestic taxable person is exempt from VAT but, depending 
on the rules of the country of destination, the customer/purchaser may be liable 
for payment of taxes or other charges.

The VAT Act states that tax exemption based on Subsection 1 of Section 98 shall 
not apply (thus such sales to a foreign traveller/passenger are not exempt either) 
in connection with goods transported by the customer himself/herself for the equipping, 
fuelling and provisioning of pleasure boats and private aircraft or any other 
means of transport for private use.
<link anchor="_ftn18">
<text>[18]</text>
</link>
 Under the meaning of that provision, for example, the sale of tires, other equipment 
and accessories purchased for a private car is also not exempt from VAT.

The Implementing Regulation sets out another important rule when it is stated 
that ‘Means of transport for private use’ as referred to in point (b) of Article 
146(1) of Directive 2006/112/EC [this is the provision on which Point b) of Subsection 
1 of Section 98 and Subsection 4 of Section 98 are based] shall include means 
of transport used for non-business purposes by persons other than natural persons, 
such as bodies governed by public law within the meaning of Article 13 of that 
Directive and associations.
<link anchor="_ftn19">
<text>[19]</text>
</link>

7. How to claim tax exemption?
<link anchor="_ftn20">
<text>
[20]
</text>
</link>

<ul>

<li>

The exemption may be applied indirectly, i.e. through the subsequent refund of 
the VAT charged to the foreign traveller. Foreign travellers may request the refund 
of the tax paid in relation to the supply of the goods from the vendor after the 
exportation of the goods, by submitting the documents required for the tax refund 
and supporting the lawfulness of the exemption. The vendor reports the VAT charged 
to the foreign travellers in the supply of goods as payable tax in the declaration 
for the tax assessment period that contains also the date of the supply of goods. 
The vendor may deduct the tax, refunded to the foreign traveller in his declaration 
prepared for the tax assessment period, during which the tax was refunded to the 
foreign traveller.
<link anchor="_ftn21">
<text>[21]</text>
</link>


</li>
</ul>

<ul>

<li>

Contrary to the above, the vendor may also decide, at his own risk, to sell the 
goods to the foreign traveller free of VAT (i.e. not to charge tax to the foreign 
traveller in the invoice issued for the supply of goods). Even in such cases the 
foreign traveller must present to the vendor the first copy of the VAT refund 
application form, endorsed and sealed by the customs authority. If, e.g., the 
vendor is unable to support the lawfulness of the exemption pursuant to Section 
99 of the VAT Act, and the transaction cannot be exempt of tax pursuant to the 
other requirements of the VAT Act either, it is advisable for the vendor to declare 
and pay the tax on the supply of goods in a self-revision of the tax assessment 
period, which includes also the date of the supply of goods. (The vendor may not 
apply exemption to any transaction pursuant to Section 99 of the VAT Act, if the 
VAT refund application form, endorsed and sealed by the customs authority is not 
available, or if the goods are exported over a period of 90 days.) 
</li>
</ul>

8. How to apply tax exemption in the framework of tax refund?

The foreign traveller may apply for VAT refund to the taxable person from whom 
the goods were purchased. In order to receive VAT refund, the first copy of the 
original VAT refund application form, endorsed by the competent customs authority, 
and the invoice issued by the vendor must be submitted to the supplier.
<link anchor="_ftn22">
<text>[22]</text>
</link>

Refund of VAT may be requested by a person acting in the name and behalf of the 
foreign traveller who presents a power of attorney made out in his/her name in 
writing by the foreign traveller. The proxy or representative of the foreign traveller 
shall hand over to the vendor power of attorney made out in his/her name in writing.
<link anchor="_ftn23">
<text>[23]</text>
</link>

The refund shall be paid to the foreign traveller in forints, in cash. However, 
the currency and the terms of payment may be altered subject to mutual consent 
by the vendor and the foreign traveller.
<link anchor="_ftn24">
<text>[24]</text>
</link>

It is the vendor’s responsibility to ensure, simultaneously with the tax refund, 
that the invoice (simplified invoice) made out on the supply of goods cannot be 
used for claiming any additional refund by affixing “VAT refunded” (“ÁFA elszámolva”) 
on the original copy of the invoice.
<link anchor="_ftn25">
<text>[25]</text>
</link>
 The supplier must make a photocopy of the document, which is no longer suitable 
for additional VAT refund prior to the return of the invoice (simplified invoice) 
to the foreign traveller, and shall keep that photocopy in his records.

The customs and other rules applicable to passenger traffic are available in 
details in Hungarian in the “Information for travellers” under the menu point 
“Publications” on the homepage of the National Tax and Customs Administration 
(<a href="http://www.nav.gov.hu">www.nav.gov.hu</a>).

National Tax and Customs Administration

<a name="_ftn1"></a>[1] Article 147 of Council Directive 2006/112/EC on the Common System of Value 
Added Tax.

<a name="_ftn2"></a>[2] Subsection 2 of Section 4, Point b) of Subsection 1 of Section 98 and Section 
99 of Act CXXVII of 2007 on Value Added Tax (hereinafter referred to as VAT Act).

<a name="_ftn3"></a>[3] Point 10) of Section 259 of the VAT Act.

<a name="_ftn4"></a>[4] Council Implementing Regulation (EU) No 282/2011 of 15 March 2011 laying 
down implementing measures for Directive 2006/112/EC on the common system of value 
added tax.

<a name="_ftn5"></a>[5] Point a) of Subsection 1 of Section 99 of the VAT Act.

<a name="_ftn6"></a>[6] Subsections (1)-(2) of Section 256 of the VAT Act.

<a name="_ftn7"></a>[7] Point b) of Subsection 1 and Subsection 2 of 99 of the VAT Act.

<a name="_ftn8"></a>[8] Subsection 2 of 99 of the VAT Act.

<a name="_ftn9"></a>[9] Subsection 2 of 99 of the VAT Act.

<a name="_ftn10"></a>[10] Subsection 10 of Section 99 of the VAT Act.

<a name="_ftn11"></a>[11] Subsection 11 of Section 99 of the VAT Act.

<a name="_ftn12"></a>[12] Subsection 2 of Section 99 of the VAT Act.

<a name="_ftn13"></a>[13] [11] The approval of the form to be applied falls within the scope of competence 
of the Central Management of the National Tax and Customs Administration, Department 
of Matters of Specific Competence.

<a name="_ftn14"></a>[14] Point c) of Subsection 1 of Section 99 and Point a) of Subsection 2 of Section 
98 of the VAT Act.

<a name="_ftn15"></a>[15] Subsection 3 of Section 99 of the VAT Act.

<a name="_ftn16"></a>[16] Point b) of Subsection 2 of Section 98 of the VAT Act.

<a name="_ftn17"></a>[17] Subsection 6 of Section 99 of the VAT Act.

<a name="_ftn18"></a>[18] Subsection 4 of Section 98 of the VAT Act.

<a name="_ftn19"></a>[19] Article 47 of the Implementing Regulation.

<a name="_ftn20"></a>[20] Point b) of Subsection 4 of Section 99 of the VAT Act.

<a name="_ftn21"></a>[21] Subsection 9 of Section 99 of the VAT Act.

<a name="_ftn22"></a>[22] Subsection 6 of Section 99 of the VAT Act.

<a name="_ftn23"></a>[23] Point b) of Subsection 5 of Section 99 of the VAT Act.

<a name="_ftn24"></a>[24] Subsection 7 of Section 99 of the VAT Act.

<a name="_ftn25"></a>[25] Subsection 8 of Section 99 of the VAT Act.

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<article contentid="5393444">
<title>Information on the Immigration Surtax</title>
<url>taxation/taxinfo/Information_on_the_Im20180823.html</url>
<starttime>
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<year>2018</year>
<month>8</month>
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Information on the Immigration Surtax

The Act XLI of 2018 on Amending Certain Tax Laws and Other Related Laws as well as 
on Immigration Surtax (hereinafter referred to as IS Act) was published in the 117th edition of the Hungarian Official Gazette (Magyar Közlöny) on 25th July 2018, the regulations of which concerning the immigration surtax are effective 
as of 25th August 2018.

1. Object of the immigration surtax

Immigration surtax shall be paid on

<ul>

<li>
financial support of the Hungarian performance of the activity assisting the 
immigration or 
</li>

<li>
financial support of the operation of the organisation which performs activity 
assisting the immigration and having a seat in Hungary.</li>
</ul>

All program, action, activity, which directly or indirectly aims at promoting 
the immigration and takes place in the framework of

<ul>

<li>media campaigns, continuation of media seminars, and the participation in it;</li>

<li>education arrangement;</li>

<li>networking and operation of a network or</li>

<li>propaganda activity which shows the immigration in a positive light</li>
</ul>

is considered to be an activity assisting the immigration.

According to the IS Act, resettlement of people from their resident country - 
intended to be definitive - to another country is regarded as immigration.

When implementing the IS Act, cases described in Act I of 2007 on the Admission and Residence of Persons with the Right of Free 
Movement and Residence are not regarded as immigration.

According to Paragraph (1) of Section 1 of Act I of 2007, Hungary shall ensure 
the right of free movement and residence

<ul>

<li>

<a name="pr8"></a>with the exception of Hungarian citizens, to nationals of any Member State of 
the European Union and States who are parties to the Agreement on the European 
Economic Area, and to persons enjoying the same treatment as nationals of States 
who are parties to the Agreement on the European Economic Area by virtue of an 
agreement between the European Community and its Member States and a State that 
is not a party to the Agreement on the European Economic Area with respect to 
the right of free movement and residence (hereinafter referred to as "EEA nationals")

<li>to the family member of an EEA national who does not have Hungarian citizenship, 
accompanying or joining the EEA national (hereinafter referred to as "family members 
of EEA nationals")</li>

<li>

<a name="pr10"></a>to the family member of a Hungarian citizen who does not have Hungarian citizenship, 
accompanying or joining the Hungarian citizen (hereinafter referred to as "family 
members of Hungarian citizens") 
<a name="pr11"></a>
</li>

<li>to any persons accompanying or joining an EEA national or a Hungarian citizen, 
who: 
<a name="pr12"></a>
</li>

<ul>

<li>are dependants or members of the household of a Hungarian citizen for a period 
of at least one year, or who require the personal care of a Hungarian citizen 
due to serious health grounds, 
<a name="pr13"></a>
</li>

<li>had been dependants or members of the household of an EEA national in the country 
from which they are arriving, or who require the personal care of an EEA national 
due to serious health reasons,</li>
</ul>
</ul>

<a name="pr14"></a>and whose entry and residence has been authorized by the authority on grounds 
of family reunification.

2. Subject of the immigration surtax

The subject of the immigration surtax is the organisation which performs the financial support of the activity assisting the 
immigration, or the operation of an organisation carrying out an activity assisting 
the immigration and having a seat in Hungary.

The party, the party foundation, furthermore the organisation the exemption of 
which is provided by an international agreement or reciprocity is not considered 
as subject of the immigration surtax. As to whether reciprocity applies, shall 
be determined relying on the directive of the minister in charge of taxation issued 
in agreement with the minister in charge of foreign policies.

The subject of the immigration surtax is obliged to submit a declaration to the organisation carrying out an activity assisting the immigration and having 
a seat in Hungary until the 15th day of the month following the month when the financial support was provided 
about the fact that the immigration surtax was fully declared. The organisation 
carrying out an activity assisting the immigration and having a seat in Hungary 
shall submit this declaration until the 15th day of the month following the month when the declaration was received and at 
the same time the name, mailing address and other known identification data of 
the support provider as well as the amount of the support have to be communicated. 
The state tax authority issued the form “BEVKA” for the declaration, the usage 
of which is recommended for taxpayers.

If the state tax authority determines that the declaration is false, then it 
obliges in a resolution the taxable person providing the support to pay the undeclared 
tax and the tax surcharge which is 50% of it.

If organisation carrying out an activity assisting the immigration and having a 
seat in Hungary does not have the declaration until the 15th day of the month following the month when the support was used, then the subject 
of the immigration surtax – instead of the initially liable one – will be the organisation carrying out an activity assisting the immigration 
and having a seat in Hungary.

3. The base and rate of the immigration surtax

The base of the immigration surtax shall be the amount of the financial support provided for the activity assisting the immigration, or the operation of an 
organisation carrying out an activity assisting the immigration and having a seat 
in Hungary.

If the subject of the immigration surtax is the organisation itself carrying 
out an activity assisting the immigration and having a seat in Hungary, then the 
base of the immigration surtax shall be the cost incurred during the activity assisting immigration.

The rate of the immigration surtax shall be 25% of the base of the immigration surtax.

4. Rules concerning the assessment of the immigration surtax

The subject of the immigration surtax is obliged to assess – on a monthly basis 
–declare and pay the immigration surtax at the latest until the 15th day of the month following the month in which the provision of the support took 
place.

If the subject of the immigration surtax is the organisation carrying out an 
activity assisting the immigration and having a seat in Hungary, then it is obliged 
to assess – on a monthly basis – declare and pay the immigration surtax at the 
latest until the 15th day of the month following the month in which the financial support was used.

The immigration surtax shall be declared by using the form No. 1897 and transferred 
to the revenue account 10032000-01079139 (tax code 416).

It is the state tax and customs authority which performs the tax administration 
duties related to the immigration surtax.

Revenues collected through the immigration surtax belongs to the central budget 
and serves exclusively for covering tasks related to border protection.

National Tax and Customs Administration

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<article contentid="1835349">
<title>Taxes payable by persons renting real estates</title>
<url>taxation/taxinfo/rent_of_real_estates.html</url>
<starttime>
<timestamp ms="1488299040000">
<year>2017</year>
<month>2</month>
<day>28</day>
<dayofweek>3</dayofweek>
<hour>17</hour>
<minute>24</minute>
<sec>0</sec>
</timestamp>
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Taxes payable by persons renting real estates – 2017

Obligation to register, tax number

If a person in Hungary leases out property within the framework of an activity 
in compliance with the Act on VAT, this activity may be pursued without a tax 
number.

Value Added Tax

As a rule, leasing out immovable properties, with the statutory exceptions, qualifies 
as a VAT-exempt activity, which means that the lessor shall not pay VAT on this 
activity. However, the lessor does not have the right of VAT deduction, either.

In terms of VAT exempt let, the taxable person has the right, subject to the 
prior notification of the Tax Authority, to opt for VAT taxation (which, in turn, 
means that he also has a right of VAT deduction). Opting for VAT taxation may, 
depending on the taxpayer’s decision, pertain to all types of immovable properties 
that are being let or only to a restricted scope of such properties: immovable 
properties other than residential buildings. If a taxable person made their choice, 
it will bind them until the end of the fifth calendar year following the year 
of this choice. In this case, the private person concerned shall register with 
the tax authority through form “T101” and apply for 1 a tax number.

Personal income tax liability

In case of real estate property not qualifying as arable land, the income of 
the private individual generated by renting the property is an income from independent 
activities and is a part of the consolidated income.

The rate of tax shall be 15 percent of the tax base.

Income generated from renting a property is either 90 percent of the revenues 
(rental fee + reimbursed utilities costs) or the actual difference between revenues 
and actually incurred and substantiated costs.

Private individuals pursuing this activity as private entrepreneurs cannot exercise 
this option.

Taxpayers must pay tax advance on their income from leasing immovable properties already during the tax year. The available two alternative options are as follows:

<ul>

<li>If the lessee qualifies as a payer (e.g. a business association or a self-employed 
individual), lessee shall deduct from the private individual, depending the 
private individuals’ statement, a tax advance from the income in compliance 
with the rules on independent professional activity and, if the private individual 
concerned is resident under the Social Security Act2 – and the income in question equals or is more than 1 million HUF, the lessee 
shall deduct, considering the private individual’s statement on reaching the 
upper threshold of contribution payment, a health care contribution of 14 percent. 
</li>
</ul>

1 Form could be submitted in two hard copies in the territorially competent first 
instance tax authority or by electronically through the Client Gateway.

<ul>

<li>If the lessee is not a payer or if the tax, tax advance and/or the health insurance 
contribution was not deducted for any reason, the lessor is obliged to pay these 
amounts by the 12th day of the month following the relevant quarter.</li>
</ul>

Obligation to pay health insurance contribution

Private individuals resident in Hungary are obliged to pay 14 percent in health 
insurance contribution on the entire amount of their income in excess of HUF 1,000,000 
originating from the lease of immovable properties. This obligation continues 
to apply up until the upper limit pertaining to compulsory contributions (HUF 
450,000) is reached.

The private person is not obliged to pay health insurance contribution after 
his income got from another member state being subject to community regulation. 
The exemption from the obligation to pay health insurance contribution is certified 
by the private person with a certification issued by the competent foreign authority 
evidencing the existence of insurance in another member state.

The 14 percent health care contribution cannot be accounted as a cost.

2 Act LXXX of 1997 on the Eligibility for Social Security Benefits and Private 
Pensions and the Funding for These Services



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</contents>

Issuing tax residence certificates2020.09.24.

Tax authorities tackling tax issues of foreigners2020.09.24.

A short summary on the taxation of business associations2020.09.24.

Income from the transfer of real properties and of rights in immovables2020.09.24.

Accounting of costs related to the operation of vehicles2020.09.17.

Taxation of private persons in 2020 (summary)2020.09.17.

Taxation of income from the transfer of real properties and movables2020.09.17.

Social security contribution and social contribution tax payable from 1 July 2020 by foreign businesses (undertakings) not required to register under Hungarian law2020.09.17.

Social Security Contributions payable in 20202020.09.17.

VAT liabilities of foreign marketers in Hungary2020.09.11.

Information on duties related to the purchase of immovable properties 2020.09.07.

Amounts and rates of duties2020.09.07.