Representatives, too, may act on behalf of their clients in proceedings before NTCA. For the procedure with involvement of legal representatives, it is sufficient that their person has been notified when the tax number is requested by the taxpayer; in the case of proxies, a power of attorney shall be submitted. The power of attorney may be issued for representation in a specific case (ad hoc authorisation) or for a longer-term in general (permanent authorisation). Proxies may act under different rules in tax and customs matters. A special form of representation is financial representation.

Financial representation in tax matters

Private individuals and companies, if established in a third country only, i.e. outside Hungary or the territory of the European Union, and incurring VAT liability on the sale of goods or provision of services in Hungary, are obliged to mandate a financial representative to meet their tax liabilities. A financial representative can be a business organisation (limited liability company or joint stock company) that has a stable financial background (its registered capital reaches HUF 50 million or has a bank guarantee of an equivalent amount), and is not in tax debt with NTCA.

In the absence of VAT liability in Hungary, the appointment of a financial representative is only an option for a third country person or organization.

Financial representation differs from any other form of representation insomuch as the foreign undertaking and the financial representative are subject to joint and several liabilities for the company’s tax obligations.

Representation in tax matters on the basis of a power of attorney

Any adult private individual or any legal entity may become a legal representative on the basis of an ad hoc authorisation.

Based on a permanent authorisation

  • any natural person may be represented by any adult private individual or any legal entity; whereas
  • an organisation (business company, foundation, etc.) can only be represented by a proxy meeting certain conditions. Such a proxy may be a legal counsel, solicitor, tax expert, tax consultant, book-keeper, owner of the entity, adult employee (a power of attorney shall be provided by such a proxy as well).

Representation in customs matters on the basis of a power of attorney

In customs matters, clients may be represented by a customs adviser, a customs agent, an AEO-licensed person or entity both on the basis of a ad hoc authorisation or a permanent authorisation (power of attorney). In appeal proceedings a legal representative may also act on behalf of the concerned person or entity (i.e. legal counsel, solicitor, European Community jurist). A proxy of the client may also be an adult employee of the client.

Notification of a financial representation to the authority 

The financial representative organization is registered by NTCA on the basis of the notification made on form no. 'T201 when requesting the tax number and NTCA establishes a tax number for the foreign undertaking on the basis of this notification. Any changes to the financial representative will also need to be notified to NTCA on form no. ‘T201. A private individual acting on behalf of the taxpayer – e.g. an employee of a financial representative organization – can be notified to NTCA on form called UJEGYKE.

Submission, notification of a power of attorney

The ad hoc power of attorney (i.e. ad hoc authorisation) shall be attached to a specific application or submitted in an ongoing case, in which the representative is entitled to act on behalf of the client.

The permanent power of attorney (i.e. permanent authorisation) shall be notified to NTCA in advance so that the representative can act on behalf of the client.

Having a tax number for the client and his/her/its proxy is also important for the submission of the power of attorney.

The power of attorney can be notified to NTCA by both the principal and the proxy on the standard form (UJEGYKE data sheet). Foreign persons are usually not obliged to administer their tax issues electronically, so they can submit the form also on paper (the power of attorney must be attached). The proxies (i.e.. Hungarian business organisations, undertakings) are usually obliged to administer their tax issues electronically, so they can submit the form in an electronic way only.

It is also possible for any party to register the power of attorney on the ONYA Portal. In this case, the power of attorney does not need to be attached, the notification must be approved by the parties. Thus, in order to use this service, both the proxy and the principal (the foreign person or in the case of an organization its legal representative) shall have an electronic identification (e-ID) accepted in Hungary (KAÜ identification, e.g. client’s gateway registration).

It is important to know that Hungarian business organisations are obliged to electronic administration of their tax issues even if their managing director is a foreign individual. Such companies can thus submit the power of attorney in accordance with the legal provisions (i.e. electronically authenticating the power of attorney or notifying it on the ONYA Portal) if the managing director also has the electronic identification referred to in the previous paragraph.

Foreign legal representatives, foreign tax experts in a procedure

In the case of a power of attorney issued for a qualified tax consultant, tax expert or European Community jurist who has not obtained his/her qualification in Hungary, it has to be made sure that such a person can exercise his/her right of representation only after his/her qualification has been accredited and registered in Hungary.


Hungarian Tax and Customs Administration