OSS and iOSS: new VAT registrations in Hungary

This is the third part of our series on the VAT registrations in Hungary.

Hungary extends the OSS regime of the European Union to all the services and remote sales activities on 1 July 2021 . There are several simple and easy options for many companies subject to VAT.

Maybe, the most important sector is the remote online sales companies, webshops. The key point is that they do not have to register to VAT in each country where their private customers are, but they can fulfil the VAT requirements jointly in their own country – or any EU country.

OSS – One-Stop Shop – is an EU standard to file one common VAT return for more countries, which also includes the payment of the VAT on intra-community sales transactions. If the company imports goods from third countries, they can use the iOSS – import OSS – platform for VAt and customs duties.

With this new regime, the duty free limit of EUR 22 regarding import from third countries is eliminated.

It is important to know that foreign companies registered in the EU, selling goods remotely to Hungarian private customers must either register to OSS until end of June in their home country, or comply with the Hungarian online invoice data transmission regulations from 1 July. Third country companies registering to OSS in Hungary must also authorise an intermediary, who complies the same requirements like a financial representative.

In summary, Hungarian companies doing distance sales in EU should register to OSS or iOSS until end of June. Foreign distance sales companies currently registered in Hungary for VAT should register to OSS in their home country to avoid full invoice data transmission in Hungary form 1 July, and then close their VAT registration in Hungary.

For further details, please contact your accountant or us.

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