VAT reclaim
If the amount of input VAT charged and deductible on a taxable persons acquisitions in a given return filing period (including the amount of input tax incurred and deductible arising in previous periods within the term of limitation) exceeds the amount of output tax on the taxable person's supplies, the taxable person may, subject to the fulfillment of certain conditions, reclaim the negative difference in its VAT return.
In the case of:
- monthly return filing taxpayers, the negative difference must reach 1 million forints,
- for quarterly return filing taxpayers, it must reach 250 thousand forints;
- and for annual return filing taxpayers, it must reach 50 thousand forints for the right to reclaim to be available.
The reclaim may be requested in the form of a disbursement or as a credit to the taxpayer's tax current account (or as a combination of the two).
Deductible VAT arising after 1 January 2016 may only be declared for deduction in the current tax return in the year in which the right to tax deduction becomes available and in the subsequent calendar year and deductible VAT arising in prior periods may only be applied by way of self-revision.
VAT refund from other member states
VAT-able persons established in any member State of the Union are entitled to reclaim the VAT charged to them in other member states of the EU under a special procedure.
VAT-able persons have to file requests for VAT refund with the tax authority of their own member state until 30 September of the year following the given year. The request is forwarded by this tax authority to the tax authority of the member state of the place of the refund.
However, VAT-able persons established in third countries with reciprocity, such as Switzerland, Liechtenstein, Norway, Serbia, and Turkey, still have to file their refund requests with the tax authority of the member state of the place of refund.
VAT-able persons having their seat or a permanent establishment in Hungary have to file requests for the refund of value added tax charged to them in other members of the European Community (foreign VAT) with the NAV (HU TA). HU TA only performs a preliminary screening role in this procedure checking if applicants satisfy the statutory requirements and, if they do, forwarding their requests within 15 days of receipt to the foreign tax authority.
