Hungarian and EU VAT number

Hungarian and EU VAT number

Applying for a VAT number is in most cases part of the company setup procedure. In Hungary, you can apply for an EU VAT number right when you register your company, without extra costs or waiting time. But what is a VAT number for?

What is a VAT number for?

When you are selling your products, they are usually subject to VAT, which is short for value added tax. This means that you are adding VAT to your intended (net) price, which you will have to pay forward to the tax authority. Since VAT payments constitute a major source of income for any state, tax authorities are very keen on companies paying their dues on time. 

Indeed, the sale of most goods and services is subject to VAT, and you need the VAT number as an identification number needed when your Hungarian company is paying the VAT added to your net prices to the Hungarian tax authority after your sales.

There are only a few cases when you do not need a VAT number, namely:

  • If your only activity is property leasing
  • If you are selling specific services not subject to VAT

What is an EU VAT number for?

When you are selling your products to customers in other EU member states, calculating and paying VAT becomes more complex. The EU VAT number of your company is an identification number recognized all over the European Union. Based on this, the various national tax authorities can keep track of transactions where VAT may be relevant.

Even if you are not planning to sell anything outside Hungary when you are first setting up your company, it is worth applying for an EU VAT number right then. It costs nothing, there is no waiting time, and it can spare you any hassle in the long run.

What do I have to watch out for regarding my VAT number?

If your Hungarian company is subject to VAT, you need the VAT number to remain compliant with regulations (and avoid unpleasant consequences). At the same time, you must keep compliant with regulations in order to keep your VAT number and continue your business operation without complications.

To keep your VAT number:

  • Make sure you indicate your relevant (Hungarian or EU) VAT number on all the invoices your company issues
  • Make sure the (Hungarian or EU) VAT numbers on incoming invoices are all valid
  • Make sure the tax authority can reach you in mail or at your company seat
  • Pay your taxes on time
  • File your tax returns on time

This stands for retaining both the local and the EU VAT number.

What else do I have to know about the Hungarian and the EU VAT number?

VAT is a complex issue, and you must be familiar with many facets of it to remain compliant with regulations and retain your local and EU VAT number. It is best if you have a trusted Hungarian accountant right from the start, or even before you make the first steps toward setting up a Hungarian company.

Since our team provides assistance to foreigners with Hungarian company formation and business operation for more than 15 years, if you choose our services, you can rest assured that you get tailored solutions to all your business needs – which can include legal and financial advisory as well as more detailed information on VAT in Hungary and the EU.

Ask for a consultation today! Just call our office on +36 1 317 8570, email us at, or fill in our contact form.