Taxable entities established in a recognised third country[1] (hereinafter referred to as "third country taxpayer") may submit a tax refund application to the National Tax and Customs Administration (NTCA)[2] using the IAFAK form provided for this purpose.
If the third-country taxpayer or the authorised representative acting on behalf of the third-country taxpayer has a domestic tax identification number/technical identification number or a company gateway or a KÜNY repository, the application can be submitted electronically, but if not, the form must be submitted to the NTCA on paper[3].
In the refund procedure, the third-country taxpayer may be represented by a foreign natural person, legal entity or other organisation, such as an agent, as a proxy. However, to submit the application electronically, the right of representation must be declared to the NTCA in advance, before the VAT is reclaimed.
- Conditions for electronic communication
The third country taxpayer or the proxy acting on his behalf must have a company gateway access for electronic communication
- (if the authorised representative is a domestic entity), or with KÜNY repository,
- and tax identification number (tax number or tax identification number).
For more information on the detailed rules for electronic communication, please visit the NTCA website (www.nav.gov.hu (http://www.nav.gov.hu/)) to consult information leaflet
„General rules of administering tax cases and maintaining connections 2020".
Private persons may open a KÜNY repository abroad
- at the diplomatic missions and consular posts of Hungary,
- in Hungary, at the Budapest and county government offices, and at the district (metropolitan district) offices of Budapest and the county government offices,
- at Government Windows,
- and at designated NTCA customer services.
At the same time as or before the KÜNY registration, foreign individuals must register with the same bodies to be included in the register of foreign nationals.
- Registration of a permanent power of attorney, representation
If the client wishes to act through a proxy, the power of attorney relationship must be registered with the NTCA in advance.
The permanent power of attorney must be declared on the dedicated EGYKE form, which can be downloaded from the NTCA website (www.nav.gov.hu (http://www.nav.gov.hu/),)and it is also available in the software for filling in forms (ÁNYK).
For more information on how to register a power of attorney, please see the following information (Hungarian language):
If both the third country taxpayer and his foreign agent have a valid domestic tax identification number or at least a technical identifier, the EGYKE form can be submitted electronically by providing these details. Only the power of attorney must be attached.
If they do not have these, they must send the printed EGYKE form on paper to the NTCA together with the following documents:
- the original of the permanent power of attorney document,
- a copy of the company extract of the third-country taxpayer if he does not have a tax identification number,
- a copy of the incumbency certificate of the third-country taxpayer (the person giving the power of attorney) if he does not have a tax identification number,
- a copy of the document identifying the authorised
In addition to Hungarian, these documents may also be submitted in English, German or French, but in other languages only with a certified Hungarian translation.
When registering a permanent power of attorney, the NTCA - if it does not have it - forms a tax identification number for the authorised representative and the third country taxpayer. The NTCA will send this to the persons concerned in its postal notification of successful registration.
- Submitting the IAFAK form electronically
The IAFAK form for VAT refund can be downloaded from the ÁNYK, from where it can be submitted directly after selecting the appropriate repository.
Forms produced electronically do not need to be signed or otherwise authenticated. Forms sent via the KÜNY repository or the company gateway are presumed by the NTCA to have originated from the repository owner.
If the third country taxpayer's tax authority status certificate is not available electronically with a certified electronic signature, it must be provided as a replacement when the previous one expires, in the original copy, by post.
A certified translation in Hungarian (English, German, French) must be attached to the tax authority status certificate if it is not issued in one of these languages.
When filling in the application form, the amount requested for the given account must be indicated on the 'SZ' sheets, rounded to HUF, i.e. without decimals.
- Submitting the IAFAK form on paper
For paper submission, the IAFAK form must be downloaded and printed from the ÁNYK, making sure that the form is the latest published version. Processing of the form is facilitated if the form is completed by the submitter by computer
The application must be signed by the third country taxpayer (authorised to sign for the company). He must enclose an original certificate of taxpayer status, not more than 1 year old, with a certified translation if necessary, and copies of invoices.
If the application is made by an ad hoc proxy, each application must be accompanied by an original copy (in Hungarian, English, German or French) of the ad hoc power of attorney, signed by the parties.
The form must be submitted to the NTCA Directorate General for Tax and Customs to the following postal address: Budapest 1410, Pf. 138.
[1] Recognised third countries: Swiss Confederation, Principality of Liechtenstein, Kingdom of Norway, Republic of Turkey, Republic of Serbia.
[2] Pursuant to Section 251/M (1) of Act CXXVII of 2007 on Value Added Tax.
[3] The content of the application and the annexes thereto are set out in Sections 1-2 and 5-7 of Decree no. 32/2009 (XII. 21.) of the Ministry of Finance on the rules of claiming the refund of value added tax in the Republic of Hungary by taxpayers not established in the domestic territory and claiming the refund of value added tax in other Member States of the European Community by taxpayers established in the domestic territory.