If you buy goods or services in Hungary, you may have to pay Hungarian VAT on them. You are able to reclaim the VAT that you paid if you're VAT-registered in your own country, and bought the goods or services for your business.What you can reclaim, depends on the rules for claiming input tax in Hungary.
Our office assists concerning legal remedy for small, medium sized enterprises and multinational companies and deals with direct representation in the case of an appeal regarding to VAT reclaim issues.
Why can the Tax Authority deny the refund of VAT?
It has been found many times that the Tax Authority does not approve the legally right VAT reclaim. The following problems may arise during the submission:
- The forms are incomplete or the attached documents are inappropriate, submitted by the companies as requested.
- The accountants of the foreign companies find difficulty in the procedure as it is done in electornic form, only in Hungarian.
- It should also be noted that the Hungarian tax authorities often reject first the foreign VAT refunds for companies because they belive that you will not turn to an attorney, you will not come back to Hungary.
- In addition to the above, it can not be expected of a foreign company management to understand the highly complex tax laws in Hungary, however, if the application does not refer to the relevant legislation, VAT will not be returned.
- Many people believe that "the Tax authority is right anyway". So they do not require the VAT again after an accidental negative decision. Do not let yourself, in such situation look for an expert to review the case.
Here is an example:
Our Italian taxpayer client was assigned for doing special painting in a Hungarian factory. During the works, the VAT was paid after goods / for the the workers’ accomodation, work clothes, items in home stores / bought in Hungary. Since this VAT occurred in the context of the activities, the company itself electronically tried to claim the VAT back ... with no success. The Tax Authority justified the decision in multiple pages in Hungarian, why the company does not get back the great amount of VAT. The Italian company visited our office after the rejected decision by the Hungarian Tax Authority. The Tax Authority brought up many arguments and decrees to ensure that the company was not entitled to receive the VAT. However, after reading the decision our tax advisory law firm was immedately aware of the reasons which will convince the authority.
In this case, the tax authority rejected the client with the false argument that the Italian company should have established sites in Hungary. We knew that this interpretation was not correct. So the Italian company with our assistance got back 100% of VAT.
What are the additional benefits if our law firm deals with VAT refunds of your company?
- We communicate with the Tax Authority electronically, reply to the authority documents immediately in order to that your company receives the VAT in the fastest way
- You do not need to have daily phone calls to the Hungarian Tax Authority to reclaim the VAT
- No need to download complicated and constantly changing new programs to fill, your bank account can receive a refund of VAT anyway
- No need to communicate with Hungary in electonic form
- We provide complex services in order to that your company could acquire the refundable VAT in Hungary as soon as possible.
- It is essential to have the accurate documents and the power of attorney from you before the procedure starts..
- We work with a success-rate construction, so your case can be initiated immediatly with a low base fee. The commission comes to our office only if the Hungarian tax authority sends the VAT to your bank account.
- In the case of a constant collaboration the reimbursed VAT will be transferred automatically to our customer's account and the foreign clients are asked only with a minimum time commitment to do some online administration.
- Do not forget if your claim is refused, you may appeal so after the rejection it is not too late to turn to us.
How much money can I claim back?
There is no limit to the maximum amount you can claim. The minimum amount refundable is €25 for a one year period and €200 for a quarter or another period less than a year.
For what period can I claim back the VAT?
Your claim can be for a period of:
- a calendar quarter;
- a calendar year.
You must claim your refund no later than 30 days after the end of the calendar quarter when you were charged the VAT. So if you were charged the VAT in quarter 1 2013, you must claim a refund by 30 April 2013 at the latest. Only one application can be lodged for each calendar quarter.
If the deadline is missed for the submission of an application for a quarterly refund, the claim may be re-submitted in an annual claim.
You must claim your refund no later than six months after the end of the calendar year when you were charged VAT. This is usually the date on the invoice and not the date you paid your supplier. If you do not meet the deadline, you won't be able to make a claim for that year. So if you were charged VAT in 2012, you must claim a refund by 30 June 2013 at the latest.
What documents should be sent to Hungary and how to keep in touch with the Law and Tax company?
- Please, contact us on the below email address: info [wnW5DKrg] drszeiler.hu Please, include the company name, registered office, the contact of the Executive or person in charge and the description of the VAT issue or standing orders. You can get in touch with us by phone 0036706765989
- In the second step our law firm sends you back by email the following documents: Quotation, List of documents required, Form to be completed about the company's data, Power of attorney
- Thirdly, you will be kindly asked to return the completed and signed documents to our office. Then we will immediately start to work with the case. Moreover we would like to assure you that the updated information will be always given to you during the process.
What are the advantages to assign a lawyer's office for the VAT refund?
Our law firm maintains close relationship with tax accountants and auditors which enable us to bring quick solution for every kind of tax issues. Our goal is to offer our customers the full range of legal and accounting services in every VAT refund case in Hungary. Our clients’ success is our success.
Lawyers and law firms bound by strict secrecy, which not only provides our customers with a unique guarantee of VAT reclaim but excluding other tax matters.
Our office represents the principle that any taxpayer should require legal representation by a lawyer, as hierarchy and authority dominance was observed between the taxpayer and the tax authority.
We presently act for Italian, German and Austrian small and large businesses, but also gladly accept requests from any other country for a successful collaboration.