04-09-2025
News
Hungary
VAT, Foreign VAT refund
If a Hungarian company purchases goods or services in another EU member state where it does not carry out taxable activities, it may reclaim the VAT charged on the invoice without registering for VAT purposes in that country by submitting an ELEKAFA application through the Hungarian tax authority.
In cases where the purchase was made in a so-called recognized third country (United Kingdom, Liechtenstein, Norway, Switzerland, Serbia, Turkey), VAT can also be reclaimed, but the application must be submitted directly to the foreign tax authority, in the format and by the deadline specified by that country.
Typical transactions eligible for foreign VAT refunds
- In the road transport and logistics sectors: fuel purchases abroad, tolls, maintenance, and spare parts.
- Business travel expenses: meals, accommodation, taxi fares, and car rentals are generally refundable, although rules may vary by country.
- Purchases related to events, conferences, or training are refundable if they are connected to the taxpayer’s economic activity.
Example:
A Hungarian VAT-registered company charges an electric passenger car in Poland and receives an invoice from a Polish VAT-registered provider showing 23% VAT. This invoice is not included in the Hungarian VAT return, as it involves foreign VAT. The company may request a refund of the Polish VAT via the ELEKAFA form, and no further VAT treatment is required for the invoice.
Key points to consider when submitting the application
- The VAT refund period must be at least three calendar months and no longer than one year.
- A maximum of five refund applications may be submitted per calendar year.
- A refund request may be submitted only once for the same VAT. If rejected, the procedure cannot be repeated for the same purchase.
- Each ELEKAFA form may only include VAT refund claims from one EU member state.
- Minimum refundable VAT amounts: EUR 50 for annual claims, EUR 400 for shorter periods.
- Provide an actively used email address on the form, as the tax authority of the member state will use it for communication.
Although the form is simple to complete, the refund process may involve various questions and potential errors. Our experienced professionals are happy to assist you in successfully reclaiming foreign VAT.