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How can we help you?
With the help of our proprietary IT solution we can provide you with simple and timely assistance regarding foreign VAT refunds for competitive prices.
Our specialists we will be glad to help you, whether in processing data on purchases performed abroad, completing the required forms, or electronically submitting foreign VAT refund applications.
Applications for refund of VAT paid in other EU Member States must be submitted by 30 September each year.
Many Hungarian-resident taxable persons make purchases in other EU Member States on which value added tax (“VAT”) is charged. Such charged VAT can be reclaimed, if certain statutory requirements are fulfilled.
Under Council Directive 2008/9/EC (“Directive”) taxable persons established in an EU Member State may, subject to fulfilling the relevant statutory requirements, reclaim any VAT charged to them as foreign-resident taxable persons in another EU Member State. Accordingly, Hungarian-resident taxable persons are entitled to reclaim VAT charged on goods or services purchased in another Member State.
Hungarian-resident taxable persons may submit their VAT refund applications, separately for each Member State, to the Hungarian National Tax and Customs Authority (“NAV”) electronically, through the Online Administration Portal, using the ‘ELEKAFA’ form. Thus, there is no need for Hungarian-resident taxable persons to contact the relevant foreign tax authorities for a refund of VAT incurred on purchases abroad, because NAV will do this for them on the basis of their application.
Refund applications must be submitted no later than 30 September of the year following the refund period. Failure to observe the above deadline means that the right to refund is lost. For applications submitted during the year, the duration of the refund period must be at least three months.
In technical terms, reclaiming VAT is a fairly simple procedure. Yet our experience shows that preparing and submitting VAT refund applications properly is still time-consuming and places significant administrative burden on most taxpayers. Consequently, they choose not to take advantage of this opportunity.
In order to make the VAT refund application procedure more accessible for Hungarian-resident taxable persons, our tax experts and IT developers have created an IT solution which makes it considerably simpler and faster to complete applications for our clients, as it is able to load data from a completed template document into the ELEKAFA form automatically. In addition, our IT solution also performs various verification steps on input data to identify any errors resulting from manual data entry, ensuring that the applications are completed properly.
