The Streamlined Process of EU VAT Number Issuance in Hungary
Setting up a business in Hungary comes with a major administrative advantage: newly registered companies automatically receive their EU VAT number at the time of incorporation. This is a key benefit for entrepreneurs looking to start a business in Hungary and engage in cross-border trade within the European Union.
Unlike in many other EU countries—such as Germany, France, or Italy—where applying for an EU VAT number is a separate, often time-consuming process involving extensive tax authority checks, the Hungarian system is streamlined. During the company registration process, the Court of Registration forwards the necessary details to the Hungarian Tax Authority (NAV), which issues both the domestic tax number and, if applicable, the EU VAT number automatically and immediately.
This allows Hungarian companies to start intra-EU business operations without delay, including VAT-exempt sales and services to other EU-based clients. The issued EU VAT number can be verified in the official VIES (VAT Information Exchange System) database, ensuring transparency and compliance in international transactions.
This efficient “one-stop shop” approach significantly reduces administrative burden and accelerates time-to-market for businesses. However, it’s important to note that the NAV may conduct post-registration audits to ensure the company legitimately engages in cross-border activities. In cases of misuse or lack of real EU transactions, the VAT number can be revoked.
Why choose Hungary for your EU business setup?
- Instant EU VAT number upon incorporation
- Simplified company registration process
- Fast access to EU market
- Reliable legal and tax framework
- Favorable for startups and international expansion
For companies aiming to operate across Europe, Hungary offers a uniquely business-friendly environment where tax and registration procedures are efficient and transparent. Automatic issuance of the EU VAT number positions Hungary as an attractive jurisdiction for launching and scaling cross-border business activity.
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