Foreign VAT Refund

If a Hungarian taxpayer uses services or acquires goods in another member state for their taxable business activities, and the VAT is lawfully charged in that member state related to these activities or product imports, they are entitled to a VAT refund. Taxpayers can request the VAT refund by submitting the ELEKÁFA form to each country separately to the Hungarian tax authority. Hungarian taxpayers can request VAT refunds on reciprocal basis for the European Union member states, Norway, Switzerland, Liechtenstein, Serbia, Turkey, and the United Kingdom, considering the Protocol on Ireland/Northern Ireland in the Agreement on the withdrawal of the United Kingdom from the EU and the European Atomic Energy Community. It is important to note that the rules of the source country apply for foreign VAT refunds, meaning that if the tax laws of the given member state stipulate a prohibition on VAT deduction for certain products or services, the foreign taxpayer is not entitled to a refund. 

A Hungarian taxpayer is eligible for a foreign VAT refund if: 

  • They do not have a headquarters or permanent establishment in the member state from which they claim the VAT refund. 

  • They did not engage in any sales of goods or provision of services in the Memer State of refund during the refund period. 

  • They use the acquired goods or services for taxable activities and do not engage exclusively in tax exempt activities. 

  • They have not opted for personal tax exemption 

  • They are not exclusively engaged in agricultural activities. 

How to submit the claim for VAT refund: 

  • The taxpayer can submit the claim for VAT refund for the VAT charged in another member state electronically through their home country's tax authority (in Hungary, to the National Tax and Customs Administration using the ELEKÁFA form), which will forward it to the tax authority of the refunding country.  

  • If the taxpayer claiming a refund for VAT charged in a third country, the application must be submitted directly to the tax authority of that country. 

Refundable Amounts: 

  • If the refund claim covers a period longer than three months but less than a year, in some member states (e.g., Austria, Germany, Czech Republic, Italy, Spain), the VAT amount cannot be less than 400 euros. 

  • If the refund claim relates to a calendar year or to the remaining part of a calendar year, the VAT amount cannot be less than 50 euros. 

For any questions, feel free to contact us!