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Services - Hungary

Updated 12/2010

Legal requirements

Services Directive

The Internal Market Services Directive is implemented in Hungary by the Act on the General Rules for the Commencement and Pursuit of Service Activities, and by the related implementing decrees.

  • Services Directive pdf български (bg)czech (cs)dansk (da)Deutsch (de)eesti (et)ελληνικά (el)español (es)Français (fr)Gaeilge (ga)italiano (it)latviešu (lv)lietuvių (lt)magyar (hu)Malti (mt)Nederlands (nl)polski (pl)português (pt)română (ro)slovenčina (sk)slovenščina (sl)suomi (fi)svenska (sv)[110 KB]
  • Act on the General Rules for the Commencement and Pursuit of Service Activities magyar
  • Government Decree on the integrated administration and information point magyar

Types of services

The Central Statistical Office regularly updates the Product and Service Classification System (TESZOR), in accordance with the EUROSTAT update procedure. TESZOR aims to systematise, group and code the many types of services carried out in society and the economy (and the products created as a result of economic activity), and to enable individual service types (or product types) to be identified.

  • Product and Service Classification System magyar

Services affected by the Services Directive

The Services Directive essentially applies to all services that are not clearly exempt from it. Among other things, the Services Directive relates to services provided in the following areas:

Commerce and hospitality

The Commerce Act provides for the requirements and conditions for pursuing commercial activities, commercial services, and commercial tourism service activities. With the exception of commercial activities that are subject to licence, service providers must report their intention to pursue commercial activities to the commercial authority.

  • Commerce Act magyar
  • Regulation of the performance of commercial activities magyar
  • Regulation of the pursuit of accommodation service activities magyar

Commercial and property management activities

The rules relating to estate agents’ activities are contained in the Act on Certain Rules Relating to the Lease of Homes and Premises, and to their Divestment. Estate agents’ activities, and property valuation and agency activities, conducted on a commercial basis (hereinafter service activities) may be pursued by those who have professional qualifications in such activities, as defined in the Ministerial Decree Issuing Professional and Examination-Related Requirements for Professional Qualifications Falling Under the Jurisdiction of the Minister for Local Government and Rural Development.

  • Act on Certain Rules Relating to the Lease of Homes and Premises, and to their Divestment magyar
  • Regulation of the performance of estate agent activities magyar
  • Government Decree Designating the Property Companies Supervisory Authority magyar

Legal, accounting and tax expert activities, and management consultancy

Legal, accounting and tax expert activities are expert services requiring a high level of specialist qualifications, and providing such services requires specific knowledge, expertise and skill. However, business management and management consultancy is consultancy offered to commercial enterprises and other organisations for management-related questions such as the development of strategic and organisational planning, financial planning, marketing policy, and human resources policy. Tax consultancy, tax expert activities, and accounting services are regulated professions that are subject to an advance reporting obligation.

  • Regulation of lawyers’ activities magyar
  • Regulation of patent agents’ activities magyar
  • Regulation of the registration of accounting service providers magyar
  • Regulation of the issue and revocation of licences providing entitlement to carry out tax consultancy, tax expert and chartered tax expert activities magyar

Advertising activities and market research

The advertising activities and market research activity group includes the planning and implementation of publicity campaigns, the appraisal and analysis of market opportunities for and acceptability of products, and the conducting of public opinion polls in political, economic and social matters and the statistical analysis of the results.

  • Act on Certain Matters Relating to Electronic Commerce Services and Services Related to the Information Society magyar
  • Act on Basic Conditions and Certain Restrictions for Business Advertising magyar

Construction industry services

Construction industry services include the building of complete constructions and specialised building, the construction of new buildings, building improvements, extensions and conversions, and the on-site erection and assembly of pre-fabricated buildings or other structures. Investment brokerage activity is a regulated profession subject to a reporting obligation.

  • Act on the Formation and Protection of the Built Environment magyar
  • Regulation of construction industry performance activities magyar

Tour operations and tour guiding

Tour operator and travel agency activities may only be pursued in Hungary by travel entrepreneurs who fulfil the conditions stipulated in the Commerce Act and the Government Decree Regulating Tour Operator and Travel Agency Activities, and who have been licensed by the Hungarian Trade Licensing Office to pursue such activities, on the basis of an application.

  • Commerce Act magyar
  • Regulation of tour operator and agency activities magyar

Persons who carry out tour guiding activities must hold a tour guiding qualification. Tour guiding activities may only be carried out in the language(s) in which the person carrying out the tour guiding activities has passed a language exam or has an equivalent level of knowledge.

  • Regulation of tour guiding activities magyar

Services not affected by the Services Directive

Numerous services are explicitly exempted from the Services Directive. Such services include financial services, non-economic services in the public interest, electronic communication services and communication networks, services provided in the transport sector, temporary employment agency services, health care services, audiovisual services, gambling, services relating to the exercise of official authority, certain social services, private security services, and services provided by notaries and bailiffs.

  • Act on the General Rules for the Commencement and Pursuit of Service Activities magyar

Financial services

The free movement of financial services is subject to regulations. If credit institutions, investment service providers, insurance companies, independent insurance brokers and advisers that are registered in the EU satisfy their reporting obligations in the state in which they have their registered office, they do not require an operating licence from the authority of the host state.

  • Act Amending Certain Acts on Financial Services to Facilitate Harmonisation of Laws magyar

Different ways of providing services

Setting up a service business

According to the principle of freedom to provide services, EU companies are entitled to provide services in other Member States of the European Union.

  • General rules for providing services across borders magyar
  • Company types recognised in the EU magyar
  • Sole trader's licence magyar
  • Reporting and record-keeping obligation of sole traders magyar

Providing services on a temporary basis

According to the principle of freedom to provide services, EU companies are entitled to provide services in other Member States of the European Union, either by setting up a company there, or by telephone, Internet or direct trading, without having to establish premises there. Cross-border provision of services means service activity without establishing premises, on a temporary or occasional basis.

  • Freedom to provide services pdf magyar
  • General rules for providing services across borders magyar

Rights of service recipients

The national authorities are obliged to provide information and assistance in relation to consumer rights and opportunities for legal remedy.

  • Act Prohibiting Dishonest Commercial Practices in Respect of Consumers magyar
  • Consumer Protection Act magyar

Labour market

Data on the labour market situation are provided by the Central Statistical Office, the Ministry of National Economy and the Ministry of National Resources. Foreign nationals may be employed in Hungary under various conditions. As a general rule, the employment of foreigners in Hungary requires a permit. However, the law provides for a number of exceptions to this.

Based on the principle of mutual recognition of qualifications, if you are authorised to practise a profession in one member country, you must be allowed to practise the same profession in another member country. During the naturalisation and recognition procedure, diplomas and certificates obtained abroad assume equal value to those that can be obtained in Hungary.

  • Act on the Recognition of Foreign Diplomas and Certificates magyar
  • Government Decree Designating the Authorities Acting in Matters Falling Under the Act on the Recognition of Foreign Certificates and Degrees, and on the Classification of Services Subject to a Declaration Obligation magyar
  • Recognition in Hungary of foreign degrees based on Community law magyar

Complaints

Consumer complaints may be referred to the Hungarian Authority for Consumer Protection. Service providers are obliged to provide their contact details for consumers to send complaints or where information on the services in question may be obtained.

Administrative procedures

"Points of Single Contact"

There is a single national, electronic point of single contact available in Hungary, which can be accessed through the www.magyarorszag.hu portal. From next year, the 15 decentralised bodies will be organised as a government agency and become physical points of single contact that will initially be available at county level and in major towns and cities. For example, the traffic authority, the State Public Health and Medical Officer’s Service, and health insurance funds will be integrated into the county-level government agencies. The one-stop shop will start with the most common matters, but the service will be expanded step by step.

  • Government Decree on the Integrated Administration and Information Point magyar
  • Electronic one-stop shop magyar

In Hungary, applications for the registration of a company must be submitted electronically by the company's legal representative. The "one-stop shop" during company registration means that the Court of Registration obtains the company's tax number and statistical code using the electronic system created for this purpose.

  • Electronic company procedures magyar      Online government service

In procedures for the issue of a sole trader's licence, the "one-stop shop" means that the district notary (documents office) obtains the tax number and, where necessary, identification number, and the statistical code, directly using the computer system created for this purpose, instead of the applicant. The applicant therefore does not need to deal in person with the competent State tax authority or the Central Statistical Office before sole trader activity is reported.

  • Reporting activities as a sole trader magyar     Online government service

Tax payment obligations

In the event that a service is provided, the obligation to pay value added tax arises at the time of sale, unless otherwise provided for. The price for performance is the tax basis. The validity of Community tax numbers and the accuracy of identification data may be confirmed upon application to the Central Contact Office of the Tax and Financial Control Administration (APEH), and the validity of Community tax numbers may be checked on the European Commission website via the VIES system, while Hungarian tax numbers may be checked on the APEH website.

  • APEH website
  • VAT obligations for trade between service providers in EU Member States pdf [196 KB] magyar
  • Origin of the VAT payment obligation, and establishing the tax to be paid magyar
  • VAT basis and exemption from VAT magyar
  • VAT deductions and payment magyar
  • Tax rebate support and VAT support magyar
  • VAT rebate
  • Procedures relating to tax rebates for foreign enterprises magyar
  • The invoice magyar
  • Filing returns for and paying corporation tax magyar
  • Simplified enterprise tax magyar
  • Filing returns for contributions magyar
  • Payment of contributions magyar
  • Confirmation of Community tax numbers of taxpayers from other Member States magyar
  • Application for confirmation of validity of a Community tax number msw8 [64 KB] magyar
  • VIES system
  • APEH: Taxpayer lists magyar

The taxation process starts with the taxpayer’s registration, during which the tax authority registers the taxpayer and issues him with a tax identification code or number. Any subsequent changes must also be registered.

Social security

The Social Security Number (TAJ number) is a personal identifier that Hungarian nationals receive at birth and keep all their lives. This code is used in records relating to healthcare, social and personal pension systems. TAJ numbers are generated by the National Health Insurance Fund (OEP).

Employers must pay pension insurance contributions, health insurance contributions and labour market contributions every month, in order to cover any social security benefits.

  • Rules of procedure relating to national insurance contributions magyar
  • Determining, filing and paying national insurance contributions magyar

Employers may only advise of employment relationships and satisfy their obligations relating to wage contribution returns electronically on the Government Portal once they have registered at the Client Gateway:

  • Government Portal Client Gateway magyar     Online government service
  • Advising of new and terminated employment relationships magyar     Online government service
  • Filing wage contribution returns electronically magyar     Online government service

Proof of qualifications

The Hungarian Equivalence and Information Centre of the Ministry of Education is responsible for recognising foreign certificates, qualifications, degrees and training.

  • Hungarian Equivalence and Information Centre magyar
  • Naturalisation and recognition magyar
  • Recognition in Hungary of foreign diplomas and certificates magyar
  • Application form for recognition of a primary school certificate obtained abroad msw8 [314 KB] magyar
  • Application form for recognition of a secondary school certificate obtained abroad msw8 [314 KB] magyar
  • Application form for recognition of professional training obtained abroad msw8 [312 KB] magyar
  • Application form for recognition of a university degree obtained abroad msw8 [314 KB] magyar
  • Application form for recognition of training that comes under European Community law magyar
  • Application form for issue of a statement on the equal validity of a foreign diploma, certificate or language examination magyar
  • Information and application form for issue of an official statement on diplomas and certificates obtained in Hungary msw8 [354 KB] magyar
  • Information and application form for issue of an official statement on professional experience obtained in Hungary msw8 [354 KB] magyar

Work permit applications

EEA citizens and their family members do not require a work permit in Hungary. Third-country nationals may only work in Hungary under certain defined conditions. As a general rule, a permit from the competent regional jobcentre for the place of employment is required for employment, although there are exceptions. At the same time, there are different rules that apply to certain nationals of EU/EEA Member States and to Swiss nationals.

  • Public Employment Service
  • Regional Jobcentres magyar
  • Employment of foreigners in Hungary magyar
  • Employment in Member States of the EU/EEA magyar
  • Information on work permits magyar
  • Simplified employment pdf magyar

Other procedures

Information on visa types and how to apply for them can be found on the following pages:

Resources

The website of the Hungarian Financial Supervisory Authority provides useful information on financial organisations providing cross-border services.

Check also the legislation on this topic in:

  • References

    Legal texts

    • Act LXXVI of 2009 on the General Rules for the Commencement and Pursuit of Service Activities - Hungarian Official Journal 2009/94 (8 July 2009) magyar
    • Act XLVIII of 2008 on Basic Conditions and Certain Restrictions for Business Advertising - Hungarian Official Journal 2008/95 (28 June 2008) magyar
    • Act XLVII of 2008 Prohibiting Dishonest Commercial Practices in Respect of Consumers - Hungarian Official Journal 2008/95 (28 June 2008) magyar
    • Act CXXXVII of 2007 on the Amendment of Acts on Financial Services to facilitate Legal Harmonisation - Hungarian Official Journal 2007/162 (28 November 2007) magyar
    • Act CXXVII of 2007 on Value-Added Tax - Hungarian Official Journal 2007/155 (16 November 2007) magyar
    • Act CLXIV of 2005 on Commerce - Hungarian Official Journal 2005/168 (25 December 2005) magyar
    • Act LX of 2003 on Insurance Companies and Insurance - Hungarian Official Journal 2003/84 (15 July 2003) magyar
    • Act CVIII of 2001 on Certain Matters Relating to Electronic Commerce Services and Services Related to the Information Society - Hungarian Official Journal 2001/153 (24 December 2001) magyar
    • Act C of 2001 on recognising foreign certificates and degrees - Hungarian Official Journal 2001/153 (24 December 2001) magyar
    • Act XI of 1998 on Protecting Trademarks and Geographical Indications - Hungarian Official Journal 1998/20 (16 March 1998) magyar
    • Act CLV of 1997 on Consumer Protection - Hungarian Official Journal 1997/119 (23 December 1997) magyar
    • Act LXXVIII of 1997 on the Formation and Protection of the Built Environment - Hungarian Official Journal 24 July 1997 magyar
    • Act XXXII of 1995 on Patent Agents - Hungarian Official Journal 5 May 1995 magyar
    • Act LXXVIII of 1993 on Certain Rules Relating to the Lease of Homes and Premises, and to their Divestment - Hungarian Official Journal 30 July 1993 magyar
    • Government Decree 239/2009 (20 October 2009) on Detailed Conditions for Pursuing Accommodation Service Activities, and on the System for Issuing Accommodation Provider Licences - Hungarian Official Journal 2009/148 (20 October 2009) magyar
    • Government Decree 217/2009 (2 October 2009) Designating Property Company Supervisory Authorities - Hungarian Official Journal 2009/141 (2 October 2009) magyar
    • Government Decree 210/2009 (29 September 2009) on the Conditions for Performing Commercial Activities - Hungarian Official Journal 2009/138 (29 September 2009) magyar
    • Government Decree 191/2009 (15 September 2009) on Construction Industry Performance Activities - Hungarian Official Journal 2009/129 (15 September 2009) magyar
    • Government Decree 33/2008 (21 February 2008) on the authorities acting in matters coming under Act C of 2001 on the Recognition of Foreign Certificates and Degrees and services requiring declarations - Hungarian Official Journal 2008/27 (21 February 2008) magyar
    • Government Decree 93/2002 (5 May 2002) on the Registration of Accounting Service Providers - Hungarian Official Journal 2002/58 (5 May 2002) magyar
    • Government Decree 213/1996 (23 December 1996) on Tour Operator and Agency Activities - Hungarian Official Journal 23 December 1996 magyar
    • Ministry of Local Government Decree 33/2009 (18 December 2009) on Tour Guiding Activities - Hungarian Official Journal 2009/185 (18 December 2009) magyar
    • Ministry of Local Government Decree 31/2009 (18 November 2009) on the Conditions for Pursuing Estate Agents’ Activities, and Property Valuation and Agency Activities, and on Detailed Rules for the Procedure - Hungarian Official Journal 2009/162 (18 November 2009) magyar
    • Ministry of Finance Decree 26/2008 (30 August 2008) on Conditions for the Issue and Revocation of Licences Providing Entitlement to Carry Out Tax Consultancy, Tax Expert and Chartered Tax Expert Activities, and on the Rules for Keeping the Associated Records and for Further Training for Those Listed in the Records - Hungarian Official Journal 2008/127 (30 August 2008) magyar

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Further help

In Hungary, the SOLVIT centre, a forum for settling internal market disputes, is run by the Ministry of Foreign Affairs.

The Hungarian Chamber of Commerce and Industry participates actively in providing information relating to setting up small and medium-sized enterprises.

SOLVIT helps businesses deal with problems that arise when national authorities wrongly apply EU market rules.

If you wish to establish a business or perform temporary cross-border services in the EU/EEA area (the 27 EU member states, plus Iceland, Liechtenstein and Norway), turn to the ‘Points of Single Contact (PSC)’ – Members of the EUGO network – that will help you to complete all necessary administrative procedures on-line! Get the information you need and submit your applications to the responsible authorities online. You no longer have to worry about contacting several different authorities one by one – the PSC will do it for you!