VAT refund claims for 2014 and 2015 should be submitted by 30 September 2016.
Who is affected?
Norwegian businesses not established and not VAT registered in Hungary sometimes incur significant amounts of VAT on expenses paid in Hungary. Some of the examples are: conference costs, training costs, employee travel and lodging, services charged from suppliers, import VAT (in certain cases),local purchase of goods and services. Previously Norwegian businesses not established and not VAT registered in Hungary were not eligible for the refund of the local VAT incurred in Hungary. This means that local VAT they have incurred was a cost for them. Going forward Norwegian companies are now able to recover input VAT charged to them by the local suppliers.
30 September - deadline for VAT refund claims
Companies that incurred local Hungarian VAT may wish to consider reclaiming it. For the VAT incurred in 2014 and 2015 special attention must be paid at the 30 September 2016 deadline – there is not much time left to identify blocked VAT.
If the Norwegian businesses have already identified the blocked VAT, it is the right time to prepare and submit VAT refund claims.