Instruction  on the procedural regulations concerning VAT and excise tax refunds to international organisations

Submitting claims

The claimant is to initiate his tax refund claim using a written application to be presented at the North-Budapest Directorate of APEH, along with the documents specified in the Decree (certificates, declarations and invoices).

The claimant may validate his right of tax refund, originating in the calendar year when the invoice was issued (henceforth the base year), from 1 January of the year subsequent to the base year, but not later than the 30th of June of this same year. If the tax refund claim is equal to, or exceeds, the amount specified in Section (3) §.5 of the Decree (which is currently 40,000 forints), the claimant is free to exercise his tax refund right at once.

Preconditions to exerting the right to tax refund:

a. The Ministry for Foreign Affairs certifies the claimant’s title to tax refund, and

b. the claimant encloses the original invoice made out to his name and the simplified invoice which, for VAT, contains the absolute amount or rate of the tax, or for excise tax, the data for the tax base of the product as given in Jöt, including the VAT as well for tobacco products with taxation seal.

The request should comprise the name of the domestic account-keeping credit institution of the claimant or of the tax subject in charge of financial services in the former’s name as well as the number of his/her forint account opened domestically for money transfer. It is the claimant that has to arrange for a domestic money transfer forint account to be opened, or to seek for and empower a credit institution in possession of a domestic forint money transfer account, or a tax subject who is providing financial services as well.

In case of invoices settled in a way other than by cash and which constitute the basis for the refund claim, copies of the bank debit notes certifying that the invoices were paid off are also to be enclosed. In case the invoice was settled by cash transfer, the transmittal slip of the transfer document is to be attached.

To promote a speedier case-processing, it is advisable – but not a necessary formal requisite – for the claimant to attach to the refund claim also a photocopy of the original invoice, the simplified invoice or the invoice-substituting document, dated and authenticated by the claimant’s signature, along with the original documents and vouchers.

Information request: info@grandconsulting.biz