I) Representation of foreign individuals

A private individual may be represented before the Tax Authority by his/her legal representative, by a lawyer, law firm, European Community jurist, tax expert, certified tax expert, tax consultant, accountant, an employee or member of a business association authorized to provide accounting, bookkeeping or tax consulting services providing adequate proof of authorisation or by any other persons of legal age vested with a power of attorney laid down in a public instrument or a private instrument with full probative force. A private entrepreneur may be represented before the Tax Authority by his/her employee of legal age in possession of an adequate proof of authorisation.

II) Representation of foreign companies

1. Foreign companies, if established in a third country, i.e. not established in Hungary or in the territory of the European Community, and incurring tax liability on the sale of goods or provision of services in Hungary, must appoint a financial representative. Financial representation differs from any other form of representation insomuch as the foreign company and the financial representative are subject to joint responsibility for the company’s tax obligations.
2. Unless the foreign entity belongs to the category described in Point 1), it may be represented before the Tax Authority by a person vested with power of representation in accordance with the relevant regulations, by an employee of legal age in possession of adequate proof of authorisation, or by a legal counsel, lawyer, law firm, European Community jurist, tax expert, certified tax expert or tax consultant, or by an employee or member of a business association authorised to provide accounting, bookkeeping or tax consulting services.
3. In the event the foreign company does not belong to the category described in Point 1), and is neither obliged to establish a resident business entity /e.g. company, association, non-profit organisation, co-operative, branch or commercial representation/ (see “Special rules governing the establishment of resident business entities”) in connection with the economic activities in which it is engaged in the territory of the Republic of Hungary, and if it does not establish a branch, it may appoint a financial representative to fulfil its tax liabilities in Hungary.

Notification of the Tax Authority on permanent authorisation

Any permanent authorisation or appointment for permanent representation before the Tax Authority is deemed to be validly performed only if the taxpayer notifies the Tax Authority thereof using the form (‘VAMO) prescribed by the State Tax Authority for this particular purpose. The Tax Authority sends a notification of the registration of permanent authorisation to the notifying person. In the absence of such notification, the taxpayer may be represented only on an ad hoc authorisation basis.

Authorisation declared on a registration data sheet (data sheet No. ‘180) submitted in order to satisfy declaration obligations electronically also qualifies as notification of permanent authorisation.

Notification to the Tax Authority on the appointment of a financial representative

The financial representative notifies the Tax Authority within 15 days of entering into or terminating its agency relationship with a company without a resident business entity in Hungary, also providing the foreign company’s particulars and the number of the bank account opened in Hungary on behalf of the foreign company for tax-related transactions. Only if data sheet ‘T201 is used for notification does the Tax Authority register the foreign company and its financial representative and provides the foreign company with a tax number. Form ‘T201 is to be used to declare changes concerning the financial representative.

The financial representative may be a company qualifying as a legal person with a subscribed capital of at least HUF 50 million or bank guarantees for the same amount and with no outstanding tax debts towards the Tax Authority. The financial representative provides proof  of compliance with these requirements simultaneously with the notification of the Tax Authority on its acceptance of agency.

Authorisation of a tax expert, a tax consultant and a European Community jurist

In the event a person with a tax expert, tax consultant or a European Community jurist qualification is granted authorisation, it should be noted that such persons may exercise their right of representation as laid down in the relevant applicable statutory regulations only after having had their qualification naturalised and, based on that, having been registered in Hungary.