Hungary VAT and TOMS Guide for Travel Businesses | Hungary Tax Rules Explained

Complete overview of Hungarian VAT, travel rates, TOMS margin rules, and compliance requirements for inbound and outbound operators.

Detailed VAT and TOMS guide for travel agents, tour operators, and DMCs working in Hungary. Understand VAT rates, place of supply, accommodation rules, event services, and margin calculations. Includes TOMS treatment, compliance obligations, and VAT reclaim guidance.

Hungary – VAT and TOMS for Travel Businesses

Modern VAT system introduced: 1988 (Általános Forgalmi Adó, ÁFA)
Standard VAT rate: 27 percent (highest in the EU)
Reduced rates: 18 percent and 5 percent
Authority: Nemzeti Adó- és Vámhivatal (NAV)

Hungary operates a detailed VAT framework with the highest standard VAT rate in the EU. The Hungarian tax authority (NAV) is known for aggressive enforcement, strict invoicing rules, and real-time reporting obligations through the RTIR system. Travel agents, DMCs, hotels, and tour operators must understand Hungary’s VAT classifications, place-of-supply rules, TOMS application, and invoicing obligations, as non-compliance often leads to immediate penalties.

Hungary applies the EU Tour Operator Margin Scheme (TOMS) to eligible travel organisers, and foreign suppliers frequently face Hungarian VAT issues due to accommodation, events, and bought-in services delivered in Budapest and other key destinations.

VAT treatment of travel and hospitality in Hungary

Hungary applies multiple VAT rates across the travel sector. Classification accuracy is essential due to NAV’s strict enforcement and the high standard VAT rate.

Accommodation

Hotel accommodation and similar lodging are subject to the 5 percent VAT rate when provided as accommodation only.
However:

• tourism development contributions may apply
• meals and spa services may attract 27 percent unless part of a qualifying board package
• wellness, leisure, and premium services usually fall under 27 percent

Hungarian accommodation invoices are closely monitored in audits.

Food and beverage

Hungary applies split VAT rates:

• 5 percent VAT on food consumed on premises in restaurants
• 27 percent VAT on alcoholic beverages
• 18 percent VAT on certain milk products and bakery items
• 27 percent VAT on soft drinks and non-qualifying restaurant items

Hotel half-board packages require careful allocation.

Passenger transport

Passenger transport services follow EU place-of-supply rules:

• domestic transport is 5 percent or 27 percent depending on method
• international passenger transport is typically exempt

Specific transport categories (e.g., Danube cruises) may require allocation of taxable and exempt elements.

Tours, activities, guides, and cultural services

VAT varies based on activity:

• guided tours: 27 percent
• cultural sites and museums: 5 percent if operated by eligible institutions, otherwise 27 percent
• amusement parks and sightseeing activities: 27 percent
• corporate event services, staging, AV, and entertainment: 27 percent

Hungary does not use a broad reduced rate for cultural tourism like some other EU countries.

DMC and event organiser services

Hungarian DMCs charge 27 percent VAT for itinerary design, coordination, event planning, incentive travel, and programme management.
If services include bought-in travel components sold as principal, TOMS may apply.

Place of supply rules

Hungary follows EU place-of-supply rules. For travel businesses:

Accommodation is always taxed in Hungary, regardless of where the customer is located.

Event services (MICE, conferences, incentives, exhibitions) taking place in Hungary are subject to Hungarian VAT for both B2B and B2C customers.

Cultural, entertainment, and educational services are taxed where performed.

Restaurant and catering services are taxed where the service is carried out.

Foreign travel companies selling Hungary-based services must consider whether the supply falls under Hungary’s VAT rules or under TOMS, depending on the business model and principal/intermediary position.

Hungary and the Tour Operator Margin Scheme (TOMS)

Hungary applies TOMS to travel organisers acting as principal when buying and reselling travel services consumed within the EU.

When TOMS applies

TOMS covers:

• bought-in hotel, transport, event, and activity services
• services sold as a package or single component
• EU travel consumption
• cases where the operator acts as principal

Scope of TOMS

Under TOMS:

• only the margin is taxed
• input VAT on bought-in components is not recoverable
• Hungarian VAT registration is not required solely for TOMS activities by foreign operators unless non-TOMS services are supplied

Activities excluded from TOMS

TOMS does not apply to:

• intermediary services
• consultancy and planning services
• event management fees
• travel outside the EU (margin may be zero rated)
• domestic services supplied as principal to B2B customers where place-of-supply rules override TOMS

VAT rate under TOMS

The TOMS margin is taxed at the standard 27 percent rate.

Zero rating for non-EU travel

Where the itinerary occurs outside the EU, the TOMS margin may be zero rated. Mixed itineraries require allocation.

Invoicing requirements (Számla)

Hungarian invoices must comply with strict formalities imposed by NAV.

Mandatory fields include:

• supplier name, address, and Hungarian VAT number
• customer VAT number for B2B intra-EU supplies
• detailed description of services
• VAT rate and VAT amount
• place of supply
• invoice serial number
• date of issue and date of supply
• explicit reference to special schemes such as TOMS (“különbözet szerinti adózás – utazási irodák”)

Invoices that lack mandatory information may lead to penalties and rejection of VAT recovery.

Invoices under TOMS

For TOMS supplies:

• no VAT is shown
• invoice must reference the margin scheme
• customer cannot recover VAT
• invoice must not imply any VAT component

Real-time invoice reporting (RTIR / Online Számla)

Hungary operates one of the strictest real-time reporting systems in Europe, known as RTIR or Online Számla.

Who must comply

All businesses with a Hungarian VAT number must submit invoice data electronically to NAV within seconds of issuance.

Foreign companies must comply if:

• they have a Hungarian VAT number
• they issue invoices for supplies taxable in Hungary
• they have a fixed establishment or register voluntarily for input VAT recovery

What must be reported

RTIR requires transmission of:

• customer details
• taxable base by VAT rate
• VAT amount
• delivery date
• nature of supply
• invoice corrections
• credit notes

Interaction with TOMS

TOMS invoices are reported to NAV:

• with no VAT amount
• using special codes indicating the margin scheme
• with the underlying total price and margin information where required

Foreign operators without a Hungarian VAT number do not use RTIR.

VAT registration for foreign suppliers

Foreign travel companies may need to register for Hungarian VAT if they:

• supply event services in Hungary
• resell Hungarian hotel accommodation as principal
• provide restaurant or catering services in Hungary
• sell cultural or entertainment services in Hungary
• act as principal for Hungarian travel services outside TOMS
• have staff, premises, or a fixed establishment in Hungary

Reverse charge may apply to some B2B services, but not to:

• accommodation
• event services
• restaurant or catering services
• cultural services

Foreign companies from outside the EU require a Hungarian tax representative.

VAT reclaim position

VAT incurred in Hungary may be refunded to:

• EU businesses through the EU 8th Directive
• non-EU businesses through the EU 13th Directive

Hungary is strict with refund approvals and requires:

• fully compliant Hungarian invoices
• accurate supplier VAT numbers
• evidence of business purpose
• expense categorisation
• consistent documentation

VAT on TOMS-related costs remains non-recoverable.

Full details are available on our VAT Reclaim page.

Antravia helps

Antravia supports travel companies with:

• Hungary VAT classification
• TOMS margin analysis
• RTIR onboarding and real-time reporting
• Hungarian VAT registration and tax representative requirements
• DMC and event VAT analysis
• multi-country itinerary VAT modelling
• reclaim feasibility under EU directives
• identifying VAT leakage across complex travel services

Not based in Hungary but looking for Hungarian VAT Reclaim? Click here

Not sure where to start? Contact Antravia for a free Consultation

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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