FISCAL REPRESENTATION

Non-EU established businesses providing taxable supplies in Hungary are required to appoint a fiscal representative for registering for VAT, filing of VAT returns, managing with queries and dealing with the tax authorities.

The fiscal representative is jointly liable  for any unpaid or undeclared VAT of the foreign business, therefore most companies who offer VAT services are not act as a fiscal representative. Additionally, it is industry practice to require a bank guarantee in favour of the fiscal representative to mitigate against potential risks if the company reneges of any liabilities.

The tax authorities regard a fiscal representative as the local agent of the foreign business, therefore the fiscal representative is required by the tax code to ensure that:

• The foreign business is properly registered with the local tax authorities.

• The businessis fully compliant with rules on invoicing, VAT treatment, exchange rates etc.

• Accounting records are maintained to exacting local standards, and that they are readily available for inspection by the tax authorities.

• All VAT and associated filings are correctly prepared and submitted.

• Enquiries and tax inspections from the VAT authorities are professionally handled.

SERVICES

We offer Fiscal Representative service as part of our VAT registration and returns service.