Rules of taxation in Hungary ― general information for sellers

If you sell goods or services in Hungary as part of your business activity, you must generally:

• register your business for VAT purposes in Hungary or in your home country
• account for VAT on your sales by adding VAT to each transaction, especially if the goods or services are sold to consumers
• apply the appropriate VAT rate
• settle the tax, i.e. submit the appropriate tax return and pay the resulting VAT amount.

In accordance with the regulations, we do not settle VAT on sales made on our platform if your company's headquarters or permanent place of business is in the territory of the European Union. In this case, you must settle the VAT yourself , at the appropriate tax rate, regardless of the VAT rate you declared to us.

To settle VAT correctly you need to know:

• what is the subject of your sale -- you need to know whether you sell goods, services or other services that are outside the scope of VAT)
• in which country VAT is due (for example Hungary)
• what is the correct VAT rate
• how much VAT you have to pay and how to do it.

When do we settle VAT on transactions on Allegro?

From July 1, 2021, we settle VAT on some so-called B2C transactions. business to client) transactions carried out on our platform by sellers from outside the European Union, i.e. those who:

• they do not have a registered office or permanent place of business in the EU and
• ship goods located and permitted for circulation in the EU to consumers in the EU.

In such cases, we are obliged to:

• determining the correct VAT rate for goods or services
• collection of VAT from transactions and
• VAT payments to the tax authorities.

We may also be required to collect VAT for certain B2C transactions involving services -- this mainly applies to the sale of electronic services.

When you settle VAT on your transactions yourself

You calculate, declare at the correct rate and pay VAT to the tax authorities if:

• you are a seller with a registered office or permanent place of business in the territory of the European Union, for example in Poland
• you Sales as part of your business activity, which means that you act as a VAT payer
• transaction is subject to VAT in the European Union, for example in Poland or Hungary.

This applies to both B2C and B2B transactions.

Who might be affected by VAT rates or other tax parameters on the platform?

VAT rates and other tax parameters may be important:

• for sellers from outside the European Union whose Sales are subject to the so-called e-commerce VAT Package and, as a consequence, Allegro is obliged to settle VAT on such sales - applies to all markets on Allegro.
• for sellers interested in conducting B2B sales within Allegro Biznes -- in the case of allegro.pl .

Sellers from the European Union, for example Polish , do not have to declare VAT rates, but they can do so for the purposes of Allegro Biznes .

Sellers may voluntarily declare:

• the right to apply a reduced VAT rate for individual offers
• classification of the subject Offers as goods or services
• grounds for excluding Offers from the scope of the so-called e-commerce VAT Package.

Please note that you most likely sell goods or services that are subject to the basic tax rate of 27% in Hungary.

In the case of sellers from outside the European Union who have not declared their VAT rate for the purposes of e-commerce VAT settlement, we assume that the subject of the sale are goods subject to the basic rate (in Hungary, the rate is 27%).

How are goods and services defined in Hungary?

In Hungary, goods are defined as tangible objects (except money, payment instruments as equivalent to money and -- as a rule -- securities). These also include: building permits, live animals, gas, electricity, heating and cooling energy.

Goods in Hungary are, for example : books, clothes, toys, household appliances, gas.

Learn more about taxation of goods in Hungary .

Services are defined in Hungary as any provision that is not treated as delivery of goods.

Examples : software licenses, Sales of access (subscriptions) to music and entertainment platforms, Sales of licenses, gaming accounts, transport, catering and restaurant services, consulting and accounting services, etc.

Learn more about service taxation in Hungary .

Some services are not subject to VAT as goods or services.

VAT rates in Hungary

The VAT rates in Hungary are:

• 27% - the basic rate applicable to most benefits
• Reduced rates -- strictly defined in Hungarian regulations:
  • 18%
  • 5%
  • ZW ― i.e. tax exemption or 0%.

You can check the rates applicable in Hungary on the EU VAT rate finder.

VAT rate 0%

We do not allow declaring a 0% VAT rate for:

• individual transactions - for technological reasons, on Allegro you declare a 0% rate by declaring VAT exemption for a given product
• ICT transactions (understood as deliveries from one European Union country to another as part of a B2B transaction), regardless of the type of goods.

If you want to apply the 0% VAT rate for ICT , confirm the conditions necessary for Credits a given transaction as ICT and the possibility of taxing it at the 0% rate.

Additional information

See the guidebook to VAT classification of items sold in Hungary .