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Hungary Tax Information

27% ÁFA (standard)

ÁFA is 27% standard (highest in EU), 18% reduced, 5% super-reduced.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Hungary

Tax number
Business address
Client details
Invoice number
ÁFA breakdown
Total in HUF

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

Készpénz8 nap15 nap30 nap

Payment Methods in Hungary

Bank TransferCredit CardPayPalCash

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Hungary?

Hungary has 27% ÁFA (standard). ÁFA is 27% standard (highest in EU), 18% reduced, 5% super-reduced.

What payment methods are common for contractors in Hungary?

Common payment methods in Hungary include: Bank Transfer, Credit Card, PayPal, Cash. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Hungary?

Your invoice should include: Tax number, Business address, Client details, Invoice number. For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What ÁFA rates apply?

27% standard (EU's highest), 18% for hotels/catering, 5% for medicine/books.