VAT in Hungary (ÁFA)
ÁFA is Hungary's value added tax on the sale of goods and services; its standard rate is 27 percent.
Updated:
What does VAT in Hungary mean?
Under section 82 of the VAT Act (Act CXXVII of 2007) the standard rate is 27 percent of the taxable amount; goods and services listed in the Act's annexes carry a reduced rate of 18 or 5 percent.
Some transactions are exempt, and small businesses can choose the small-business exemption. Which rate applies to an item is always a question for your accountant.
Why does it matter to a small business?
On a small business's invoices VAT is a large part of the total, so a wrong rate or wrong rounding can cause trouble both for the buyer and in the VAT return. When the default rate is the company's setting and you change it per line only where needed, there are fewer mistakes. Which rate applies to which product or service is always a question for your accountant.
What does it look like in practice?
Details
Suppose a small shop in Pécs sells two kinds of goods, and its accountant has confirmed that a reduced rate applies to one of them. The company's default is the standard rate, and for the other goods it picks the reduced rate per line on the invoice. One invoice can then carry two rates, and the tax on each line is worked out separately, rounded per line.
How does HelloCRM handle it?
Details
In HelloCRM the VAT rate is your company's own default and can be changed per line; a 0 percent line asks for an exemption reason. Totals are rounded per line.
Module: Invoicing (paid module, price coming soon).
A CRM for small businesses in Hungary
HelloCRM is an online CRM made in Hungary for small and mid-sized businesses there, in Hungarian and English: the core CRM is free for good, with no time limit and no card, and it can be tried without signing up in a demo company full of example data.
Questions
What is VAT in Hungary, in one sentence?
ÁFA is Hungary's value added tax on the sale of goods and services; its standard rate is 27 percent.
Sources
This is general information, not legal or tax advice. The rules come from: 2007. évi CXXVII. törvény az általános forgalmi adóról (Áfa tv.), Nemzeti Jogszabálytár (checked )