NAV Hungary National Tax & Customs Administration : Taxpayer Registration

Organization : National Tax & Customs Administration
Type of Facility : Taxpayer Registration
Country: Hungary

Website : https://nav.gov.hu/

Taxpayer Registration :

The taxpayer must fulfil its registration obligation prior to the commencement of its business activity on the territory of Hungary.

Related : NAV National Tax & Customs Administration E-Returns Hungary : www.statusin.org/8983.html

In order to be able to file for registration with the tax authority, foreign companies without a branch office in the territory of Hungary, i.e. with no independently operating business entity registered as a branch office in the Hungarian company register, must meet special conditions.

A foreign company is not required to establish a branch if:
** it pursues for-profit economic activities in Hungary without establishing a branch office,
** pursues any one of the following for-profit economic activities through a branch office:
** teaching and educational activities provided at education institutions or at higher education institutions,
** performing arts-related activities,
** professional sports activity,
** an activity limited to the supply of domestic goods purchased by the company or the supply of services if such occurs without personal presence and through the use of a commercial card issued by it abroad,
** utilisation of real property and natural resources for a consideration, the transfer, sale or in-kind capital contribution of a right of property value related to real property and natural resources.

Registration (application for a tax number, community tax number) is performed by the submission of the following documents:
** form ‘T201’, which must be submitted in a paper-based format in 2 copies to the Tax Authority of first instance with territorial jurisdiction, or electronically via the Client Gate in one copy,
** the certified Hungarian translation of the certificate of incorporation,
** specimen signature,
** certificate from the competent tax authority with jurisdiction over the seat of business to the effect that the company has domestic tax residence in the given country, and
** if, in violation of the law, the registration obligation is fulfilled only after the commencement of the business activity, the starting date of the activity must also be provided.

The documents verifying the data provided by the tax payer can be attached to the form in the form of photocopies. If the form is sent electronically, the documents can be enclosed in a scanned format.

General rules of taxpayer registration:
Taxpayers shall fulfil their obligation to register with the tax authority prior to the commencement of pursuing their business activities on the territory of Hungary. As the tax number generated upon registration also serves as a VAT identification number, no separate registration is necessary in respect of VAT.

It is highly recommended that, using form No. ‘T34, private individuals apply for a tax identification code and request the issuance of a tax card prior to receiving any income, as in the absence of the card and/or the code the payer/employer must deny effecting any payment until the private individuals concerned provide their tax identification code. The authority in charge of data provision will also refuse to issue certificates verifying eligibility for tax allowances, tax exemption as well as for tax and other benefits until the relevant tax identification code is provided.

The obligation to register with the tax administration can be fulfilled at any of the following locations:
** if, in order to perform business activities, you need a private entrepreneur’s licence, by submitting an application for an entrepreneur’s licence at the competent Document Office, you concurrently fulfil your obligation to register with the tax authority;
** if, in order to perform business activities, you respectively the company represented by you needs registration, by submitting an application for registration to the competent Court of Registration, you concurrently fulfil your obligation to register with the tax authority;
** if you are allowed to carry out taxable activities without an entrepreneur’s ID, or if the company represented by you can carry out taxable activities without court registration, you must register directly with the competent tax authority, individuals using form the ’T101 or form companies using form ’T201;
** if you are a private individual without a tax identification code and intend to pursue an activity that incurs tax (other than entrepreneurial tax or VAT) payment liability, you shall fulfil your obligation to register with the tax authority by completing data sheet No. ‘T34 and submitting it to the competent tax authority;
** if you are a private individual holding a personal ID card or a private individual who should hold one, but you do not have a social security relationship on your own right or a derivative one and, as a result, you incur special contribution payment liability, you shall, by completing form No. ‘T1011, register with the competent tax authority within 15 days following the date when the payment obligation is incurred or when it ceases.

Additional reporting obligations:
Taxpayers engaged in an activity whose pursuit is subject to holding an entrepreneur’s licence or company registration shall, within 15 days following the receipt of the entrepreneur’s licence or the date of company registration, in respect of further data, provide data directly for the tax authority. For this purpose, private entrepreneurs and companies must use forms No. ‘T101E and ‘T201T, respectively.

The following data shall be provided:
The place where company’s documents are kept unless that place, is also the taxpayer’s seat or place of residence, the tax identification number/code of his representative as per the applicable statutory regulation, the tax identification number of the legal predecessor, the tax identification number/code(s) of the owner(s) of the economic association without legal personality, limited liability company, association or joint company, the mailing address of the private individual unless it is identical with the taxpayer’s registered office or business premises, activities actually pursued under Regulation 1893/2006/EC, in the event that a registered office facility is provided as a service, the name/designation and tax number of the attorney/law firm providing the service, the term of the agency contract concluded to provide the registered office facility, the start date of the provision of the registered office facility as a service and those bound by the agency contract concluded.
** Taxpayers taking up the entrepreneur’s ID shall register their core activity when taking the ID up at the document office. In case of other activities carried out using the ID, you may choose to register them at the document office or at the competent tax authority.
** Companies required to be registered by the court shall register their core activity upon filing the court registration request at the registry court, and their other activities (including changes in the core activity) shall be registered directly with the competent tax authority.