Import Tax, VAT, GST & Sales Tax on Imported Goods in Hungary

When importing goods into Hungary, it's essential to understand the difference between duty and tax. Duty refers to the customs duty payable on the imported goods, which varies by product. On the other hand, tax refers to the Value-Added Tax (VAT) payable on the imported goods, which is currently set at 27% of the taxable amount. This distinction is crucial in calculating the total cost of importing goods into Hungary.

VAT on imports in Hungary is calculated based on the taxable amount, which includes the cost of the goods, freight, and insurance, as well as any applicable customs duty. The VAT rate of 27% is applied to this taxable amount, resulting in the VAT payable on the import. For example, if the taxable amount is 100,000 HUF, the VAT payable would be 27,000 HUF, making the total cost 127,000 HUF.

The tax base for VAT on imports in Hungary is the sum of the CIF (Cost, Insurance, and Freight) value of the goods and any applicable customs duty. This means that the VAT is calculated on the total value of the goods, including the cost of transportation and insurance, as well as any duty payable. For instance, if the CIF value of the goods is 80,000 HUF and the customs duty is 10,000 HUF, the tax base would be 90,000 HUF, and the VAT payable would be 24,300 HUF (27% of 90,000 HUF).

VAT on imports in Hungary applies to most goods, but there are some exemptions and special rules. For example, certain goods such as food, healthcare products, and educational materials may be subject to a reduced VAT rate or be exempt from VAT altogether. Additionally, some importers, such as charities or non-profit organizations, may also be exempt from paying VAT on certain imports. It's essential to check the specific rules and regulations to determine if VAT applies to your import and if any exemptions are available.