Hungary: Fiscal representation at WTS Klient - fiscalrep.hu is now live

Non-EU businesses need a fiscal representative to trade in Hungary. Fiscalrep.hu is the official new website created to to facilitate a transparent, secure, and fully compliant market entry into Hungary.

From September 2025, NAV will reclassify 21 invoice validation warnings as errors, leading to failed reporting. Businesses must update systems to avoid tax risks under Hungary’s stricter rules.

Explore this new publication by WTS Klient, which offers a comprehensive and accessible overview of the most important aspects of the Hungarian employment and tax environment.

In May 2025, WTS Klient Hungary launched a new business line under the leadership of Miklós Andorka.

Around mid-July the Hungarian Parliament finally approved a bill, which technically “transfers several provisions on certain financial-related taxes to the relevant sector-specific laws as of 1 August 2023.

Types of bilateral agreement governing insurance of foreign workers: comprehensive, so-called social policy agreements; social security agreements; and healthcare cooperation agreements.

Decree 8/2023 of the Minister of Energy was published on 2 June 2023, which finally clarified the amounts of the EPR fees payable from July.

On 8 January 2023, the six-month grace period lapsed from the notification of the United Sates to Hungary regarding the termination of its double tax treaty. 

With a view to facilitating transfer pricing reporting properly, the Hungarian Ministry of Finance has published a 25-page document at the end of March.

2023 is starting with significant changes for employees and employers in Hungary: the introduction of new tax allowances, a new type of leave and the minimum wage increasing.

The Klient group that provides complex business and financial consulting services will continue operating as a single company under the name of WTS Klient Business Advisory Ltd. from January. 

Hungarian TP rules are to change significantly in accordance with the bill submitted to the Hungarian Parliament in the summer of 2022.

Changes are expected in social contribution tax regarding the determination of the taxable portion of income and the concept of the base salary in Hungary.

Two-thirds of Hungary’s online customers order their goods from sellers inside and outside Hungary.

On 15 December 2021, the Hungarian Parliament adopted the tax changes for 2022 submitted on 23 November 2021.

The State Secretary’s Decree of 22 March 2019 (No. 2019-42405) describes the circumstances under which it may be assumed that the collective investment fund in question is under ‘special government supervision’.

Based on the bill submitted in October 2020 and approved in November, Hungarian taxpayers should have been able to use the system for draft VAT returns (eVAT returns) offered by the tax authority as of July 2021. Pursuant to a Government Decree, the roll-out of draft VAT returns has been switched to the tax assessment period starting on 1 October 2021.

The online invoice data reporting system moved to the next level on 1 January 2021, extending this obligation to almost all sales invoices issued by Hungarian taxpayers, practically meaning that most invoices issued have to be reported from this date.

Our colleagues in Hungary explain the current focus of the Hungarian tax authority at Hungarian subsidiaries of foreign companies under the aspect of transfer pricing following the COVID-19 crisis.

Hungary provides a chance to reduce the VAT burden for residential property.

On 16 March 2021, the CJEU upheld the European General Court’s judgments Commission vs. Poland and Commission vs. Hungary, which had ruled that the Polish tax on the retail sector and the Hungarian tax on advertisements did not infringe EU law on State aid.  

An extension of the scope of invoices subject to the online reporting system in combination with pre-completed VAT returns can be seen in Hungary. 

As a result of measures taken due to the COVID-19 pandemic, numerous questions have risen regarding the social security liability and personal income tax liability of expats.

Employees working in a different country to that where the registered office of their employer is located raises several taxation issues.

Hungary provided its taxpayers a four-month extension of their transfer pricing documentation and furthermore accepts a re-evaluation of the profit-loss model, due to the impact of COVID-19.

An insights on VAT purposes and compliances for non-residents in Hugary.

From 1 July 2020, data reporting at invoice level must cover each invoice issued on domestic transactions to taxpayers registered in Hungary regardless of the VAT amount of the invoice issued

Effective as of 1 January 2019 a group taxation model for corporate income tax purposes has been introduced

Overview of changes