Key takeaways
- As of March 1, 2025, Hungary introduced stricter rules for import VAT deductions by indirect customs representatives.
- Both importers and representatives must meet specific conditions — including monthly VAT filing and reliable taxpayer status.
- Risky or new taxpayers are not eligible to assign deduction rights.
- Representatives must perform a partner verification for non-reliable clients.
- The reform aims to limit VAT fraud and enhance compliance oversight.
In short: Since March 1, 2025, Hungary has made it harder for indirect customs representatives to claim the right to deduct import VAT for importers. Both the importer and the representative must now meet set conditions. Importers must file monthly VAT returns and pass a taxpayer check. Representatives must hold reliable taxpayer status.
New rules in Hungary took effect on March 1, 2025. They make it harder for indirect customs representatives to claim the right to deduct import VAT on behalf of importers. Both parties must now meet specific conditions before the deduction is allowed.
What must importers do under Hungary's new import VAT rules?
To assign the right to deduct import VAT, importers in Hungary must meet two key requirements. They must file monthly VAT returns, and they must have the right taxpayer classification.
1. Monthly VAT returns
Importers must file VAT returns every month. They must also confirm this in writing to their indirect customs representative.
2. Taxpayer classification
- Reliable taxpayers: The deduction is allowed. The importer must have at least 3 years of continuous operation.
- Risky taxpayers: The deduction is not allowed.
- Normal taxpayers: The deduction is allowed only if a partner (risk) check confirms there is no tax risk.
New importers cannot qualify as reliable taxpayers by default. So they cannot assign the deduction.
What is a partner verification?
A partner verification is a risk check that the indirect customs representative must carry out when the importer is not classified as reliable. It involves:
- Using public data and tax authority databases.
- Collecting information from the importer.
- (With consent) Asking the tax authority for confidential data through the Client Portal.
The law does not define how the partner verification works. Guidance recommends a thorough review. The customs representative decides how far the check goes.
What must indirect customs representatives do?
Indirect customs representatives in Hungary must also meet certain requirements.
1. Reliable taxpayer status
Only representatives with reliable taxpayer status can handle VAT deduction assignments.
2. Additional administrative requirements
Representatives must:
- Submit partner verification results with the KVKPELL form on the ONYA portal.
- Include extra declarations with their VAT return.
What does this mean for businesses?
If you import into Hungary through an indirect customs representative, the rules affect how your import VAT is handled. Each party should check its position before the next shipment.
- Importers: Check your taxpayer classification and confirm in writing that you file monthly VAT returns. Risky taxpayers and new businesses cannot assign the deduction.
- Importers classified as normal taxpayers: Expect your representative to ask for information for a partner verification. Build this time into your import schedule.
- Indirect customs representatives: Confirm you hold reliable taxpayer status. Set a documented partner verification process, and plan for KVKPELL filings and the extra declarations with your VAT return.
If the conditions are not met, the representative cannot take over the import VAT deduction for that importer. Agree in advance with your representative who checks the conditions and how often.
How does NAV decide whether a taxpayer is reliable?
The Hungarian tax authority (NAV) classifies taxpayers every quarter, based on conditions on the last day of the quarter. To be reliable, a business must meet all of the conditions, including these:
- It has operated, or been VAT-registered, continuously for at least three years.
- Tax differences found in the reference year and the previous five years are no more than 3% of its tax performance.
- Its net tax debt is no more than HUF 500,000.
- It has had no bankruptcy, liquidation or forced deletion proceedings in the reference year or the previous five years.
- Its tax performance for the reference year is positive.
A business is risky if, for example, NAV lists it for large tax shortfalls or arrears, or has closed its business. Businesses in neither group fall under the general rules: the normal taxpayers above. A risky status is removed at the next quarterly review once the debt and fines are paid and no other risk factors remain.
Why did Hungary change the import VAT deduction rules?
Hungary's new import VAT rules aim to improve compliance and limit VAT fraud. If your business is involved in imports, you should review your status and processes now.
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Frequently asked questions
What changed on March 1, 2025?
New rules restrict indirect customs representatives’ ability to claim VAT deductions unless both parties meet compliance criteria.
What must importers do to qualify?
Importers must file monthly VAT returns and be classified as reliable taxpayers with at least three years of continuous operation.
Can new importers assign VAT deduction rights?
No. New businesses are not yet considered reliable and cannot delegate deduction rights.
What is a partner verification?
It’s a due diligence process that representatives must complete for non-reliable clients using public and tax authority data.
Who can act as a customs representative under the new rules?
Only reliable taxpayers are permitted to handle VAT deductions as indirect representatives.
Where are verification results submitted?
Results must be filed via the KVKPELL form on Hungary’s ONYA portal.
What’s the goal of these reforms?
To prevent fraudulent deductions and increase accountability between importers and customs agents.
How often does NAV review taxpayer classification?
Every quarter. NAV checks the conditions on the last day of each quarter, so a business can move between reliable, normal and risky status during the year.
Can a risky taxpayer lose that status?
Yes. The risky status is removed at the next quarterly review once the tax shortfall, related fines and debts are paid and no other risk factors remain.
