Suppose you need to do your business in Hungary without necessarily coming up with a Hungarian company. In that case, you can easily do some direct trading with the help of a foreign entity. However, you need VAT registration. Hungary’s rules on VAT registration abide by the EU VAT legislation.
VAT registration as of EUR 299,000 within 48 hours
Being a member of the EU, VAT registration is a regular administrative process that you will encounter. You will have a general tax identification number as you incorporate a Hungarian company. You will use this for any VAT purposes. This means that you do need another VAT registration. The FirmaX administrative and tax personnel can easily help you throughout the VAT registration in Hungary.
VAT registration services
These services include;
- Determining if you require VAT registration
- Preparing the VAT registration form
- Organize and signing of the VAT registration forms
- Submit any VAT registration requests received
- Provide coordination between the tax authority and VAT registration
- Offer any tax consultancy services about VAT registration.
All you need to know about VAT.
Most businesses across the globe need to pay VAT. VAT is an abbreviation of Value Added Tax. This is a consumption tax that each person or firm needs to pay depending on the value of the kind of services or goods you offer.
Most people can easily confuse VAT and Sales tax since they are both levied on goods and services. These two taxes are way different from one another. As a company, you are required to pay both VAT and Sales tax.
Different countries in the world have their own tax rules and regulations. So a product is taxed as per those rules and regulations. They differ from one country to another.
VAT tax is levied on various businesses such as house cleaning, shoe shiners, restaurants, hairdressers, teachers, etc. If your business requires the customers to pay for admission, you will pay VAT tax.
Regardless of the type of business that you are running, you are always required to pay this tax. However, you can only be exempted from incurring this tax if you have fundraising or charity events offering services and goods. In such a scenario, your fundraising or charity event should be legal and has the required documentation for the exemption.
With this kind of documentation, you can avoid more trouble in Hungary. The difference between Sales tax and VAT is that you will always need VAT whenever you are running some businesses in Hungary. Therefore, each time you register VAT, it indicates that you are obeying the country’s business laws. If you fail to register this tax, you will face a bigger penalty. Before you make any registration, you should be well acquainted with the local laws of Hungary.
Before you make any registration, you should inquire whether you need to get a VAT or not. If you are a resident of Hungary with annual sales of less than 4,76,000 euros, then you do not need a VAT. If the sales are greater than the figures, then you will need a VAT registration.
Additionally, if it is your first time owning a business in Hungary, you can easily register VAT voluntarily by checking the forms online. You should fill in the forms honestly since you can get in trouble if you have different businesses and are dishonest. Moreover, you can make things easier for yourselves by hiring a VAT advisor since they can guide you throughout the VAT registration process in Hungary.