If you are a foreign tax subject, you can engage in business activities in Hungary with only VAT registration. An important precondition of the above, however, is informing oneself with utmost care with respect to the tax returns, since both the Hungarian and the EU regulations only define the broader framework for such activities, and leave several tax issues and decisions to be made open.
Based on the international and Hungarian practice, we offer a solution for the treatment of this situation, with respect to the dilemmas of determining the location of the permanent establishment and the place of performance, the emergence of the VAT payment obligation, and if necessary, also in connection with establishing a commercial representation agency and the tax liabilities arising.