VAT in Hungary

Why am I paying VAT on the conference registration fee?

You are paying a Value Added Tax (VAT) on the registration fee because it is required by the laws and regulations of the EU and its Member States.

To ensure gasworld’s compliance with local tax regulations, 27% VAT must be added to all delegate registrations. Unlike many other B2B transactions, which are generally taxed at the customer’s place of establishment and are handled by the reverse charge mechanism, the gasworld conference concerns the supply of B2B services in respect to admission to cultural, artistic, sporting, scientific, educational, entertainment or similar events, such as fairs and exhibitions, and of ancillary services related to the admission.  VAT must be paid on the fees in the country where the conference is held. For this conference, Hungarian VAT is applicable on the registration fee.

What percent tax is Hungarian VAT?

Registration fees for the gasworld conference in Hungary for both taxable and non-taxable persons, regardless of their nationality, are subject to Hungarian VAT at 27%.

Can the VAT be recovered?

Possibly. Only business companies from the European Union and from certain Non-European countries can claim back the Hungarian VAT.

What process should companies follow to recover the VAT?

EU Companies: EU companies must contact the Tax Administration of their own country for instructions regarding the conditions and process to follow for reclaiming the Hungarian VAT. There are also minimum VAT amounts that must be met. For the refund applications for one to three quarters by an EU company the minimum amount is EUR 400. If the refund application relates to a refund period of a calendar year or the remainder of a calendar year, the amount of VAT may not be less than EUR 50. Please note that these amounts refer to ALL the VAT from the expenses incurred FROM ALL ITS EMPLOYEES in Hungary for this congress and any other business-related VAT incurred in Hungary.

Non-European Companies: Non-European companies that have reciprocity with Hungary under the 13th Directive VAT refund procedure have to submit the application for VAT refund directly to the Hungarian Tax Authorities using the IAFAK form. There are time limits for this procedure.  There are also minimum VAT amounts that must be met. The VAT refund must be at least EUR 400, unless the refund period is the calendar year or the last period of the calendar year. The refund for these refund periods must be at least EUR 50. Please note that these amounts refer to ALL the VAT from the expenses incurred FROM ALL ITS EMPLOYEES in Hungary for this congress and any other business-related VAT incurred in Hungary.

This information is provided for guidance only and should not be relied upon, you should seek your own professional advise as required.  gasworld.com accepts no responsibility for your correct application of VAT regulations.

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