Tax obligations and selling on Allegro.hu

VAT rates and taxes in Hungary

Selling on Allegro in Hungary may require applying the local VAT rate, which is the highest among EU countries, at 27%. Additionally, Hungary has two reduced rates of 18% and 5%.

Using the Hungarian VAT rate is mandatory in the following cases:

• Selling goods from the territory of Hungary;
• Shipping goods from Poland to private individuals when the total sales value exceeds EUR 10,000, which is the EU distance selling threshold. Before exceeding EU mail order sales limits in 2024, sales can be treated as local sales.

For more information about VAT in Hungary and the categories of goods and services subject to these VAT rates, check our article VAT Hungary 2024.

Deadlines for VAT returns in Hungary

Tax obligations related to selling on Hungarian Allegro also involve submitting VAT returns in Hungary on time and according to regulations to avoid penalties and fines.

In Hungary, the default VAT return period is quarterly, but newly established companies must submit monthly VAT returns until the end of the calendar year in which they were registered.

Furthermore, monthly VAT returns are mandatory if the VAT amount exceeds HUF 1,000,000 in the second year preceding the current tax year or if the amount exceeds this threshold in any quarter of the current year.

Annual VAT returns are also an option but are intended for businesses without an EU VAT number and with a VAT amount not exceeding HUF 250,000.

The deadlines for submitting VAT returns are the 20th day of the month following the reporting period (quarter or month) and February 25th for annual returns.

When is VAT registration in Hungary necessary?

Not all sellers on Hungarian Allegro need to register for VAT in Hungary. However, it will be necessary in certain cases:

• Storing Goods in Hungary: Selling locally stored goods in Hungary to local customers will be treated as local sales and cannot be settled under the VAT OSS scheme. Local sales are not subject to any thresholds.
• Not Using the VAT OSS Procedure: The VAT OSS procedure allows for the settlement of distance sales in the B2C model to recipients in other EU member states. Therefore, if it’s not in use, the goods are stored in a country other than Hungary and sold to private Hungarian consumers, and the total sales value to private consumers in other member states exceeds EUR 10,000, this sales must be settled locally.

VAT registration process in Hungary

After submitting the correctly completed set of documents to the Hungarian tax office, the VAT registration process takes about a month.

Need help with VAT?

Contact us, indicate what is problematic, and our specialists will take care of the rest! Regardless of whether it is accounting in the e-commerce industry, or activities related to VAT, VAT OSS and VAT EU – registrations, settlements or declarations.

Schedule a consultation

Settling sales on Allegro.hu in VAT OSS

If you are selling goods to private recipients from other EU member states, including Hungary, you can settle your sales with a single quarterly return. In Poland, this return is submitted to the Second Tax Office of Warsaw-Śródmieście and includes data such as:

• The countries of consumption (delivery of goods) where sales occurred;
• The applicable and applied VAT rates;
• The amount of VAT.

VAT OSS registration

To use the VAT OSS procedure and settle sales on Allegro.hu, you first need to register for it. This registration is done in the country where the business is registered.

For more information, check our article VAT OSS – Co to jest i kogo dotyczy?.

VAT OSS and documenting sales

Many questions often arise with VAT OSS. Below we have answered the most frequently asked ones:

Is VAT-OSS sufficient for selling on Hungarian Allegro?

Yes, if goods are shipped to Hungary from a Polish warehouse, and customers are private individuals. However, if the warehouse is located in Hungary, such sales are considered local sales, and VAT OSS does not apply.

Do I need to issue invoices/receipts?

Tax regulations do not require issuing VAT invoices for sales under the VAT OSS procedure. Additionally, if VAT OSS sales are taxed in another EU country, taxpayers are exempt from the obligation to register sales using cash registers.

In what language and currency should the invoice be issued?

Using the VAT OSS procedure, the taxpayer issuing the invoice must follow the regulations of the country of identification. In Poland, these regulations do not specify the language or currency in which the invoice should be issued. However, invoices are typically issued in the language of the client’s country or in English.

What VAT rate should be applied on the invoice?

When settling sales on Allegro.hu under the VAT OSS procedure, the Hungarian VAT rate must be applied.

Sales below the EUR 10,000 threshold and documenting sales

Besides the VAT OSS procedure, questions often arise regarding documenting sales when the EUR 10,000 threshold is not exceeded. Below we have provided answers to the most frequently asked questions in this regard:

If I sell on a smaller scale (below the annual threshold) and am not registered for VAT OSS, how do I document the sales? Do I need to issue invoices, and what VAT rate do I apply?

If the supplier does not use the OSS (Union) procedure, they are always required to issue an invoice for intra-Community distance sales of goods. The invoicing is done according to the regulations of the country where the sale is taxed.

Do I need to issue receipts, or can I use the cash register exemption?

In such cases, sales transactions are subject to the general cash register rules. However, it is possible to use the exemption for delivery of goods by mail or courier, provided the payment is received through the post, bank, or credit union. It is important that the records and documents clearly indicate the transaction and the buyer’s details (including address).

Remember that certain groups of goods are excluded from this exemption, e.g., perfumes and car parts. It is recommended to verify this issue with a tax advisor.

Allegro.hu and tax obligations - Summary

Hungary is another market where the Polish e-commerce giant, Allegro, has emerged, creating new opportunities for e-commerce entrepreneurs. However, expanding into a new market comes with tax obligations related to, among others, sales settlement and submitting necessary declarations, with each country having different regulations governing these issues.

Moreover, the taxation of sales depends on the scale and distribution model. In some situations, using the VAT OSS procedure will be feasible, while in others, local VAT registration will be necessary. If you need support in these aspects and want to ensure that your sales comply with the legal requirements of the country of sale, schedule a consultation and see what our VAT Compliance team can do for you!