No permanent establishment in Hungary?
If your company is registered outside the European Union – such as in Asia, North America, or other non-EU countries – and you plan to sell goods, import products, or provide services in Hungary or to EU customers from Hungary, your first and most crucial step is to appoint a fiscal representative in Hungary.
Why is fiscal representation mandatory in Hungary?
Under Hungarian VAT law, fiscal representation is not only advisable but legally required for businesses without a permanent establishment or branch in Hungary that carry out VAT-liable activities within the country. Without a fiscal representative, your company cannot legally sell, import, or provide services in Hungary or from Hungary to other EU Member States.
How can WTS support you as your fiscal representative in Hungary?
WTS provides comprehensive fiscal representation in Hungary, ensuring full compliance with local VAT obligations on your behalf:
- VAT registration in Hungary
- ongoing tax advisory to ensure compliant and optimised operations
- preparation and submission of VAT returns
- management of tax payments
- direct communication with the Hungarian authorities
- full representation at the Hungarian authorities
Legal requirements for fiscal representatives from 2025
Did you know? Starting 1 January 2025, only companies meeting the following criteria are allowed to act as fiscal representatives in Hungary:
- must be incorporated as a private limited company (Kft.) or a public/private limited liability company (Zrt.)
- must have a minimum registered capital of HUF 150 million, or be able to provide an equivalent bank guarantee
- must not have any outstanding public debt registered with the Hungarian tax authority (NAV)
WTS FRS Ltd. (fiscalrep.hu) is an officially registered fiscal representative in Hungary. We support companies based in:
- Asia (including China and Japan)
- North America (especially the USA and Canada)
- non-EU countries in Europe, such as the United Kingdom, Switzerland, and Norway
Our services enable smooth and compliant business operations in Hungary for companies outside the EU.
With a strong international background and in-depth local expertise, WTS offers reliable fiscal representation tailored to the specific needs of third-country companies. We understand that fiscal representation is a matter of responsibility and trust, and our English-speaking tax advisers are happy to answer any questions you may have.
This article is for general information purposes only and should not be considered as advice.
