The application relating to a calendar year must be submitted to the Hungarian tax authorities within nine months of the end of the calendar year in which the tax became chargeable, i.e. by 30 September of the following year. Late claims are not accepted and the deadline will not be extended.
The application, which can be downloaded from the internet, must be on a form issued by the Hungarian tax authorities. It must be completed in Hungarian, be in Hungarian Florint and signed by a person or persons who are fully legally entitled to represent the company based on the company records. The application can be submitted in hard copy or electronically, along with all relevant supporting documentation.
A hard copy application should be sent to:
Nemzeti Adó- és Vámhivatal Kiemelt Ügyek Adóigazgatósága (KAIG) 1077 Budapest, Dob utca 75-81., Hungary
Mailing address: 1410 Budapest, Pf. 138, Hungary Tel: + 36 1 461 3300
Fax: +36 1 322 1985
www.nav.gov.hu
Supporting documentation
The following documents must be submitted with each application:
• Electronic copy of invoices or customs declarations for which the taxable basis of the invoice or import documents equals or exceeds the threshold of EUR 1,000 (EUR 250 for invoices relating to fuel costs). The serial number used in the application form must be included on the documents;
• An original certificate of VAT status confirming that the claimant is registered for VAT purposes in its country of residence. The certificate may not be more than one year old.
The Hungarian tax authorities can request additional documents/information (e.g. invoices or import documents even if the taxable basis does not exceed the above thresholds).
E-invoicing
In case of electronic invoices, the invoices are to be attached to the application in a form that is valid at the time of issue. Such invoices must be issued in line with Hungarian law. The detailed procedure for the submission of electronic invoices is not addressed by the law.
Refunds and appeals
The Hungarian tax authorities must issue a decision on the refund claim within four months of receipt of the claim:
• The authorities can accept the claim and notify the claimant either electronically or by regular mail;
• The authorities can reject the claim in whole or in part and notify the claimant either electronically or by regular mail;
• The authorities can request additional information and notify the claimant either electronically or by regular mail. The claimant must provide all information within one month of receipt of the request.
Where it is stated ‘via electronic means’, this implies that either an e-mail notification is sent, or a notification through the portal of the authorities (www.magyarorszag.hu). By default, notifications received through this portal are also sent via e-mail.
The queries/decisions are only sent to the claimant or its agent.
The period in which the authorities must make a decision will be extended to seven months where additional information is requested or eight months where the authorities request additional information after a first request.
If a refund is granted, it will be processed within 10 business days in Hungarian Forint or in any other currency before the end of the relevant period, and paid to the bank account designated by the claimant in Hungary or the state in which it is established. The claimant will be responsible for any bank charges for the transfer.
The Hungarian tax authorities will be liable for late payment interest if the refund is not processed in a timely manner (1/365 of double the prime rate during the time of delay). If the refund is not granted, the grounds for rejection of the application will be stated. An appeal against the denied claim may be made to the Hungarian tax authorities within 15 days of the date of notification (tax assessment) issued by the tax authorities. All relevant documents and evidence must be attached to the appeal request and a fee paid. If the appeal is unsuccessful, the claimant can go to the national court.
A refund claim is deemed neither accepted nor rejected if no query nor decision is issued in due time.
The whole refund claim should not be rejected in Hungary where one of the submitted invoices would be incorrect/could not be provided in a readable/acceptable scanned copy, (i.e. partial rejection of claims is possible).
The whole refund claim should also not be rejected in Hungary because a query on one particular submitted invoice has not been answered.
Practical causes of rejection usually used by the Hungarian authorities are:
• Multiple claims are submitted for the same period (the claims other than the first one are rejected);
• Insufficient documentation of the transactions indicated in the claim. An appeal is to be filed through letter and drafted in Hungarian language.
Penalties may be levied by the Hungarian authorities in case of rejected refund claims, according to the general rules applicable for domestic taxpayers in relation to an unlawful refund claim.
The tax authority usually keeps the refund deadlines, as late refunds would trigger late payment interest.