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.
New regulations introduced on March 1, 2025, in Hungary will make it more difficult for indirect customs representatives to claim the right to deduct import VAT on behalf of importers. Both parties must now meet specific conditions for the deduction to be allowed.
For importers
To assign the right to deduct import VAT, importers must meet two key requirements:
1. Monthly VAT returns
Importers must file VAT returns monthly and confirm this in writing to their indirect customs representative.
2. Taxpayer classification
- Reliable taxpayers: Deduction allowed (must have at least 3 years of continuous operation).
- Risky taxpayers: Deduction not allowed.
- Normal taxpayers: Deduction allowed only if a partner (risk) verification confirms no tax risk.
New importers, by default, cannot qualify as reliable taxpayers and are therefore excluded from assigning the deduction.
Partner verification
If the importer is not classified as reliable, the indirect customs representative must carry out a partner verification. This involves:
- Using public data and tax authority databases.
- Collecting information from the importer.
- (With consent) Requesting confidential data from the tax authority via the Client Portal.
The verification process is not legally defined, but guidance recommends a thorough review. The customs representative is responsible for determining the scope.
For indirect customs representatives
They must also meet certain requirements:
1. Reliable taxpayer status
Only representatives with reliable taxpayer status can handle VAT deduction assignments.
2. Additional administrative requirements
They must:
- Submit partner verification results via the KVKPELL form on the ONYA portal.
- Include supplementary declarations with their VAT return.
Summary
These new rules are designed to ensure better compliance and limit VAT fraud. Businesses involved in imports should now be reviewing their status and processes accordingly.
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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.
