Hungary - Taxes

[Gabor@]

TAX in HUNGARY (HU)

In most cases, Hungary Value Added Tax (ÁFA in hungarian) is payable at a rate of 25%.
There are reduced rates of 18%, relating to basic food, and 5% rate that relates mainly to products and services such as books, newspapers and medicines.

Regards,
Gabor

[Matthieu Biart]

Hi Gabor!

Thank you for your contribution.

Product taxes are clear now.
But what about voucher/discount coupon, shipping costs, handling cost?

Moreover does PrestaShop need any adjustement to fit your legislation? Particularly on the invoice and the order process.

[Gabor@]

I am looking for more details and also working on the translations.

-Voucher should be sold without VAT.
-VAT of shipping and handling should be the same as VAT of bought product (if you sell books or medicines (5% VAT), VAT for shipping should be 5% also)

Invoicing also strict in Hungary. I will be back with more details.

Thanks,
Gabor

[Gabor@]

Not just customer but full details of the seller company should be on the invoice (name, address, vat id, IBAN and SWIFT [bIC] code).

[Gabor@]

Unfortunately printing invoices from Prestashop is not valid in Hungary (from 2010-04)

24/1995. (XI. 22.) financial regulation
The seller must have a detailed user manual and documentation about the program flow of the invoicing program which guarantees the control of the program (if Hungarian Tax and Financial Control Administration would like to check). And must have a certificate (addressed to the seller) from producer of the invoicing program about that the program is in accordance with the Hungarian law directions. (valid in printable format, must contain program version number, and seller name; address; vat id)

[Matthieu Biart]

Unfortunately printing invoices from Prestashop is not valid in Hungary (from 2010-04)

Hmmm. We'll deal with this once the "technical stuff" will be compliant ;-)

-VAT of shipping and handling should be the same as VAT of bought product (if you sell books or medicines (5% VAT), VAT for shipping should be 5% also)

How does it work if the merchant sell a product with a 5% tax and another one with a 12% tax? Which VAT applies to the shipping?

[Gabor@]

I had to dig into local rules deeply. So it is simple but not easy to understand.
If you use a shipping provider (DHL, UPS, Fedex) you should use the same VAT as they provide on their invoice. (25%)
If you have a staff member who do the shipping, than you should think about shipping cost as additional cost. This additional shipping cost can not be invoiced separately. Net product price should be increased with additional shipping costs.

So finally you can use separate shipping invoicing with 25% or shipping should be added to the net price.

[Matthieu Biart]

This additional shipping cost can not be invoiced separately. Net product price should be increased with additional shipping costs.

[...]

shipping should be added to the net price.

Let's says PrestaShop handles shipping in that way. How do the shipping taxes must be calculated (in the above exemple)?

[Gabor@]

Let's see examples

Shipping with DHL, Post Office or any other shipping provider would be :
Rubik's Cube 8€ + 25%VAT
Guinness World Records Book 18€ +5%VAT
DHL shipping 2€+25%VAT

--------------
webshop using own shipping service not an external provider (no changes required in the system, but seller should include shipping costs in price)
Rubik's Cube with shipping 9€ + 25%VAT
Guinness World Records Book with shipping 19€ + 5%VAT

[Matthieu Biart]

Let's see examples

Shipping with DHL, Post Office or any other shipping provider would be :
Rubik's Cube 8€ + 25%VAT
Guinness World Records Book 18€ +5%VAT
DHL shipping 2€+25%VAT

Just to be sure. From what is provided the following tax?

DHL shipping 2€+25%VAT

From the carrier (DHL) or from the highest product tax rate (Rubik's Cube)?

[Gabor@]

Hopefully I understand you well...
2€ shipping was just a random number.
Especially in our webshop we use price ranges. Under 5000HUF shipping is 800HUF, and 500HUF under 10000HUF and free if more than 10000HUF ordered. Shipping could be calculated on product weight or size also.

[Matthieu Biart]

Hopefully I understand you well...

I'm not so sure of that

2€ shipping was just a random number.

I wasn't talking about the 2 euros but the 25% VAT applied.

From what is provided the following tax?

DHL shipping 2€+25%VAT

From the carrier (DHL) or from the highest product tax rate (Rubik's Cube)?

[Gabor@]

DHL shipping 2€+25%VAT

that's from the carrier (DHL) not else

[Smithy86]

TAX in HUNGARY (HU)

 

In most cases, Hungary Value Added Tax (ÁFA in hungarian) is payable at a rate of 25%.

There are reduced rates of 18%, relating to basic food, and 5% rate that relates mainly to products and services such as books, newspapers and medicines.

 

Regards,

Gabor

 

The ÁFA (Value Added Tax) modified 27%.

 

Regards,

Smithy