Áfa

ÁFA, short for általános forgalmi adó, is the value-added tax (VAT) in Hungary. It is a consumption tax levied on most goods and services sold within the country and on certain imports. The tax is collected at each stage of production and distribution: businesses add ÁFA to their sales and may deduct the ÁFA paid on purchases; the net amount is remitted to the national tax authority.

ÁFA rates in Hungary are defined by law. The standard rate is 27 percent, making Hungary one of the countries with the highest VAT rates in the European Union. Reduced rates of 18 percent and 5 percent apply to a subset of goods and services, including some basic goods and social necessities. Some transactions are exempt from ÁFA or fall outside the regular charging mechanism. Exports outside the EU and intra-community supplies to VAT-registered buyers are generally zero-rated.

Administration and compliance: VAT registration is mandatory for businesses meeting turnover thresholds. Registered entities issue VAT invoices, submit periodic VAT returns, and pay the net ÁFA due. The administration and enforcement are handled by the National Tax and Customs Administration (NAV).

Relation to the EU: ÁFA in Hungary operates within the EU’s VAT framework. Hungary adheres to EU-wide rules on the place of taxation, invoicing, refunds, and cross-border transactions, while rate levels differ from other member states.

See also: value-added tax, Hungarian tax system, NAV.