Foreign VAT refund

Refund of VAT paid in an EU Member State. Even if a Hungarian entity does not perform a taxable activity in the different countries of the European Union (or in Switzerland, Liechtenstein and Norway), but it is charged local VAT due to the acquisition of a product or service, or a product import resulting in payable VAT, it becomes entitled to reclaim the charged or payable VAT.

The application for foreign VAT refund should be submitted by EU companies in their country of establishment. In addition to the EU Member States, Switzerland, Liechtenstein and Norway have also concluded a Reciprocity Agreement with the EU in respect of foreign VAT refund, therefore the VAT paid in these countries may also be refunded. The mere difference is that the request of refunding the VAT paid in Switzerland, Liechtenstein and Norway must be submitted directly to the tax authorities of the state concerned by the refund and cannot be submitted in the country of residence. Likewise, Swiss, Liechtenstein and Norwegian companies must also submit the request to the Hungarian Tax Authority for refunding the VAT paid to Hungarian suppliers or the Customs Authority.

After submitting a refund request, local authorities generally ask for supplementary information, so it is highly recommended to make sure that the relevant documents are submitted within the deadline. Indeed, the foreign VAT refund has a limitation period and if the company fails to comply with the statutory deadline or the deadline for supplementary information, or it does not submit the relevant documents, the local authorities will easily refuse the VAT refund application.

Who do we offer services?

  • For such Hungarian entities that do not carry out a taxable activity abroad, but they had to pay a high amount of VAT to foreign suppliers or tax authorities, and would like to request VAT refund.
  • For Swiss, Liechtenstein or Norwegian companies who have paid Hungarian VAT rate on their purchases in Hungary.
  • For such entities, which are capable of completing the forms and proceeding with the administration on their own, but they would require a disproportionally long time.
  • For such companies, which have already attempted a foreign VAT refund, but the foreign authority has refused the request for some reasons.

How can we help?

  • Mazars assists Hungarian companies in refunding foreign VAT and even coordinates VAT refunds in multiple countries by providing a complex service. Similarly, Mazars helps the Hungarian VAT refunds of Swiss, Liechtenstein and Norwegian companies.
  • Mazars has a dedicated VAT specialist team with high efficiency and significant professional experience, to carry out tasks related to foreign VAT refund;
  • Mazars is working in return for competitive success fee, therefore it is granted it invoices the services if the Client receives VAT refund. In addition, in the case of appeal, the many years of experience of Mazars’ international audit and tax advisory network is at your disposal.
  • Mazars’ Tax and Legal Department is always available for assistance, consultation or advice in any topic.

Should you have any questions about our foreign VAT refund services, please contact our colleagues directly or your Tax Advisor at Mazars.

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