September not only marks the end of summer and the start of the school year, but also a key deadline in taxation. Businesses in Hungary have to submit their applications for reclaiming 2024 foreign VAT (i.e. the value added tax charged in 2024 in other EU Member States) until 30 September 2025. To help ensure a smooth process, we have compiled the most important information and practical tips.
If your company purchased goods or used services in other EU countries in 2024 and local VAT was charged on those transactions, do not miss this deadline!
Who is eligible to reclaim 2024 foreign VAT?
Hungarian businesses may reclaim foreign VAT if:
- they are eligible to deduct VAT in Hungary (e.g. they are not qualifying as tax-exemption businesses),
- the foreign VAT was incurred in connection with the company’s taxable business activities, and
- they do not have a registered seat or a permanent establishment in the respective Member State through which they generate revenue. (In such cases, VAT should be settled via local VAT returns.)
How to submit the application?
The refund application must be submitted via the Hungarian tax authority’s ÁNYK (General Form Completion Program) using form ELEKAFA. The deadline for submitting the claim for 2024 foreign VAT is 30 September 2025.
Important: The deadline is peremptory. If missed, the tax authority will not accept any justification, and there will be no further opportunity to reclaim the 2024 foreign VAT. While recent decisions by the European Court of Justice have slightly relaxed the previously strict practice regarding the deadline for providing missing information, meeting the peremptory 30 September deadline remains crucial.
Common mistakes to avoid
- Ensure you are using the latest version of the ELEKAFA form. Outdated versions may result in your application being rejected by the Hungarian tax authority.
- Before submitting the ELEKAFA form, it is recommended to check the entire form using the green check mark in the upper right corner of the program (“Check all forms”) to filter out any errors or warnings related to the form. It is also strongly recommended that you check the warnings marked in yellow to ensure that the submitted form is accepted and forwarded to the tax authority of the Member State concerned. An example of such an error would be if the country code in the address is not written in two capital letters. For example, if you enter the country code “De” for an address in Germany, at first glance it will appear as “DE” on the form, but the system of the Hungarian tax authority may still indicate an error that could result in the application being rejected. The successful submission of your application is confirmed by the KKI receipt issued by the Hungarian tax authority.
Reclaiming the 2024 foreign VAT may seem straightforward, but the process is riddled with administrative pitfalls. Even minor errors can lead to rejection by the tax authority. Especially for larger amounts, it is highly recommended to seek professional assistance. As in previous years, the experienced tax advisers of WTS Klient Hungary are ready to support you with your 2024 foreign VAT refund.
This article provides general information and does not constitute advice.
