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Outside the EU - Hungary

Updated 12/2010

Legal requirements

Foreign trade by Hungarian companies is regulated by Government Decree. Hungary is also a signatory to many bilateral and multilateral international agreements on foreign trade. As of 1 May 2004, Hungary has applied the Community tariff articles in respect of third countries outside the European Union.

Exporting goods

For products that are sold and shipped outside the Community, exemption from value added tax requires that the product leaves Community territory in a way that can be verified by the Customs authority within 90 days of the sale. The VAT Act also provides for the tax rebate form that must be issued to a foreign traveller in order to prove tax exemption.

  • Value-Added Tax Act magyar
  • Collection of laws relating to Customs and duties magyar
  • Selling products outside the Community magyar

The task of the Hungarian Export Credit Insurance Company is to stimulate and promote external trade links; the distribution of the financial risks of export cannot be ensured by means of traditional market instruments. Insurers - irrespective of their methods - offer protection against commercial and political risks for export companies and their banks.

Importing goods

From the perspective of paying value-added tax, the importing or other means of bringing a product not in free circulation from the territory of a third country to the territory of the Community is classed as product import. As a general rule, the place on the territory of the Member State to which the imported product was brought must be regarded as the place of execution.

  • VAT rules for trade between EU Member States magyar
  • VAT deductions and payment magyar
  • VAT basis and exemption from VAT magyar

You can find information on customs tariffs and goods classifications applied in Hungary on the website of the Customs and Finance Guard.

Excise cases

The Customs authority shall act in excise cases. The Excise Act contains regulations relating to the imposition, filing, authorising of and exemption from excise duties.

  • Excise Act magyar
  • Scope of the Excise Act and monitoring of excise magyar
  • Origin of liability for excise duty magyar
  • Excise procedure magyar
  • Suspension of excise duty magyar
  • Tax-free consumption of excise goods and tax rebates magyar

Environmental protection product tariff

In the case of imports, the person liable for Customs duties under the Customs laws, or the operator of a duty-free area, must pay the environmental protection product tariff.

  • Act on Environmental Product Charges magyar
  • Environmental protection product tariff magyar

Exporting and importing services

The VAT Act records the concept of providing a service, as well as taxation questions relating to the provision of services outside the territory of the Community or from premises outside the Community, including the conditions for tax exemption.

  • VAT rules for the provision of services magyar

Statistics

The obligation to provide data relating to external trade of products outside the European Union is recorded in a Government Decree.

  • Data gathering and transfer by the National Statistical Data Collection Programme magyar
 

Administrative procedures

Exporting goods

Since 30 June 2009, reports may only be submitted electronically, using the Export Control System (ECS).

Simplified export procedure

During the simplified electronic export procedure, the exporter starts the export procedure in the form of an electronic message. The Customs export office sends electronic confirmation to the exporter, who shows it with the shipment when it leaves the country. The other procedures make it possible for the Customs export office to have information relating not only to the export procedure but also to the fact of export (place, date).

  • Selling products outside the Community magyar
  • Export Control System magyar (ECS)
  • Automated Export System magyar (AES)
  • Introducing the technical process for registration msw8 [421 KB] magyar
  • "Consumer and data protection statement" msw8 [48 KB] magyar

To export certain goods from Hungary, you are required to hold a licence issued by the Hungarian Trade Licensing Office. These goods include, for example, explosives and pyrotechnic products.

  • Hungarian Trade Licensing Office magyar
  • Trade licensing forms magyar

Importing goods

In Hungary, the possibility of preparing and making electronic goods declarations is guaranteed for Customs import procedures. After the imported goods are handed over to Customs, some customers who are registered for electronic goods declarations (e.g. those who have an AEO certificate) will have the opportunity for this 24 hours a day, while others will have the opportunity during the official opening hours of the Customs and Finance Guard Office.

In order to protect the territory of the Community and the citizens of the Member States, a risk assessment must be carried out in respect of all goods arriving on the territory of the Community, for security and defence purposes, before the goods arrive on the territory of the Community, and on the basis of the goods declaration collected upon entry and submitted electronically.

  • Import Monitoring System magyar (ICS)
  • Automated Import System magyar (AIS)
  • Data provided by the Customs authority on the issue, repeal and amendment of excise licences magyar     Online government service

Value-added tax

Value-added tax on imported products is determined by the Customs authority if the taxpayer does not have a licence from the Customs authority entitling him to self-assessment in respect of product imports. Taxpayers who do have a licence fulfil the tax obligations for their imports of products by means of self-assessment.

  • Product import magyar
  • VAT returns magyar     Online government service

Exporting and importing services

As a general rule, the place of execution for providing data is the place where the registered office or permanent premises of the company availing itself of the service is located, failing which it is the place where he lives or has his usual place of residence. In the event that a service is provided, the obligation to pay tax arises at the time of sale, unless otherwise provided for. The price for performance is the tax basis.

  • VAT rules for trade between EU Member States magyar
  • VAT rules for the provision of services magyar

In terms of cross-border services, the Hungarian Trade Licensing Office can issue a licence for company exports.

  • Information on licence applications and declarations of performance relating to the execution of company quota export agreements magyar
  • Information on licence applications for executing company import contracts concluded in respect of non-EEA countries magyar

Submitting statistics

Statistics on trade with countries outside the European Union are based on the records (Extrastat) prepared by the Customs and Finance Guard as part of its Customs procedures. However, as of 2009, statistical data is collected directly.

  • Data gathering and transfer by the National Statistical Data Collection Programme magyar

Hungarian organisations that offer services to foreigners or take advantage of services from foreigners are obliged to provide data on external trade of services. Company data is collected quarterly and annually. In order to facilitate the provision of data on external trade of services, the Central Statistical Office operates a user-friendly electronic data collection system.

  • Statistical data collection system for data on external trade of services - Central Statistical Office magyar       Online government service
  • User manual on how to use the electronic statistical data collection system for data on external trade of services pdf [1 MB] magyar

Resources

The Ministry of Foreign Affairs provides information on bilateral agreements between Hungary and other countries to eliminate trade barriers, commitments undertaken in international agreements, and agreements with third countries on introducing professional programmes.

  • Records of the Republic of Hungary's international agreements magyar

A lot of useful information can also be found on the Hungarian Trade Licensing Office website.

  • Company quota exports and imports magyar

Check also the legislation on this topic in:

  • References

    Legal texts

    • Act CXXVII of 2007 on Value-Added Tax - Hungarian Official Journal 2007/155 (16 November 2007) magyar
    • Act CXXVI of 2003 Implementing Community Customs Law - Hungarian Official Journal 2003/157 (28 December 2003) magyar
    • Act CXXVII of 2003 on Excise Taxes and the Special Regulation of Excise Goods - Hungarian Official Journal 2003/157 (28 December 2003) magyar
    • Act IX of 1998 Publishing the Marrakesh Agreement Establishing the World Trade Organisation, and the Annexes Thereto, Drawn Up Within the Framework of the General Agreement on Tariffs and Trade (GATT) - Hungarian Official Journal 1998/17 (7 March 1998) magyar
    • Act LVI of 1995 on Environmental Product Charges, and on Environmental Product Charges on Certain Products - Hungarian Official Journal 1995/53 (23 June 1995) magyar
    • Act XLII of 1994 on Eximbank Hungary and the Hungarian Export Credit Insurance Company - Hungarian Official Journal 1994/44 (26 April 1994) magyar
    • Government Decree 16/2004 (6 February 2004) on Licensing the Export, Import, Transfer and Transit of Military Equipment and Services - Hungarian Official Journal 2004/12 (6 February 2004) magyar
    • Government Decree 50/2004 (23 March 2004) on the Licensing of Foreign Trade in Dual-Use Goods and Technologies - Hungarian Official Journal 2004/33 (23 March 2004) magyar
    • Government Decree 110/2004 (28 April 2004) on Trading Goods, Services and Rights of Financial Value Across the State and Customs Border - Hungarian Official Journal 2004/58 (28 April 2004)[157 KB]
    • Ministry of Economy and Transport Decree 32/2007 (19 March 2007) on the Marking of Military Products and the Registration of Military Products and Services - Hungarian Official Journal 2007/31 (19 March 2007) magyar
    • Ministry of Economy and Transport Decree 67/2004 (28 April 2004) implementing Government Decree 110/2004 (28 April 2004) on Trading Goods, Services and Rights of Financial Value Across State and Customs Borders - Hungarian Official Journal 2004/58 (28 April 2004) magyar
    • Government Decree 53/1999 (24 September 1999) a on the System for Authorising Company Quota Exports - Hungarian Official Journal 1999/85 (24 September 1999) magyar

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