• Services
• Tax, VAT and Fiscal representation

Fiscal representation

If you are a non-EU established company and doing business in Hungary, there is a chance that your entity will need a Hungarian Tax ID (VAT ID – value added tax ID) and in that case you will need a VAT registration in Hungary. If so, you will also need to appoint a fiscal representative in Hungary as based on the Hungarian legislation fiscal representation is mandatory for non-EU entities. Fiscal representative is responsible to ensure that you comply with all tax obligations in Hungary, including invoicing requirements, record keeping, EKAER obligations, tax filings and payments, dealing with enquiries from the tax authorities and tax inspections. The fiscal representative basically acts as your VAT representative, more broadly speaking as your local tax agent in Hungary while ensuring the cross-border VAT compliance of your company.

Since fiscal representative has joint and several liabilities regarding your tax obligations in Hungary, it is an industry practice to require a bank guarantee or a bank deposit from your entity to cover some of the tax risks taken by the fiscal representative.