Hungary

To identify the customer’s location, the merchant has to collect at least two items on non-contradictory evidence. And if two of them are in Hungary, the customer may be determined as Hungarian:

• customer’s permanent address
• billing address (bank or electronic payment operator)
• IP address
• telephone number
• the location of the customer’s fixed land line through which the service is supplied to him
• other commercially relevant information

As defined by EU law, a digital product is any product that’s stored, delivered, and used in an electronic format. These are goods or services that the customer receives via email, by downloading them from the Internet, or through logging into a website, in particular:

• e-books, images, movies, and videos, whether buying a copy from Shopify or using a service like Netflix. In tax language, these products are in a category usually called, «Audio, visual, or audio-visual products»
• downloadable and streaming music, whether buying an MP3 or using a service like SoundCloud or Spotify. Of course, these products also fall into the audio category
• cloud-based software and as-a-Service products, such as Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS)
• websites, site hosting services, and internet service providers
• online ads and affiliate marketing

Taxable persons registered in Hungary shall register via the Government portal using ”Client Gate” (“Ügyfélkapu” in Hungarian) by choosing option “Union scheme”. Those taxable persons not established in the EU should follow option “non-Union scheme”. Upon registration (“Képviseleti fiók nyitása”) an activation link is sent to the e-mail address provided by the applicant through which access to the MOSS portal shall be activated. Following successful activation, the portal can be accessed by the e-mail address and password allocated to the taxable person. The following information is to be provided to the Hungarian Tax Authority upon MOSS registration:

Taxable persons not established in the EU (non-Union scheme):

• company’s name, trading name of the company if different from the company name, full postal address, email address and website of the taxable person, name and phone number of the contact person, BIC number
• national tax number, if any
• country in which the taxable person has his place of business
• IBAN or OBAN number
• electronic declaration that the taxable person is not registered for VAT within the Union
• date of commencement of using the scheme

Taxable person established in Hungary (Union scheme):

• company’s name, trading name of the company if different from the company name, full postal address, email address and website of the taxable person, name and phone number of the contact person, BIC number
• tax identification number in Hungary
• full postal address of fixed establishment(s) situated in other Member States of the European Community
• VAT identification number issued to the taxable person by any Member State of the European Community where the taxable person is not established
• VAT identification number issued by any Member State of the European Community where the taxable person’s fixed establishment is located, or tax reference number in the absence thereof
• country where the taxable person is established, if established outside the territory of the European Community.
• date of commencement of using the scheme
• IBAN number

You must keep records of your activities for 10 years from the end of the year in which the service was supplied and digital copies should be made available if requested.

You have to submit detailed online quarterly VAT returns within 20 days of the end of each return period. The information is then securely transferred from your member state of identification to the relevant member state of consumption.

The tax is paid in HUF by bank transfer to a bank account published by the state tax and customs authority at the same time as filing the declaration, no later than the filing deadline, with reference to the tax declaration on which the payment is based.