I. Rules of representation and maintaining connections, when the state tax authority acts as tax administration of the Member State of establishment

 1. If the foreign agent only intends to represent the Hungarian taxpayer at a foreign tax administration then the Hungarian taxpayer must indicate him as contact person in its VAT refund application (form ’ELEKAFA page K-01). The foreign tax administration will contact the agent indicated in such manner.

 Please be aware that being indicated as contact person does not imply the status of agent in the Hungarian part of the procedure, thus it does not entitle to represent the taxpayer at the Hungarian tax administration.

 2. If the foreign agent wishes to represent the Hungarian taxpayer during the whole procedure and also wants to file the VAT return application on its behalf then it must comply with the following obligations.

 Please be aware that according to the Hungarian tax procedural legislation a legal entity or an organisation having no legal entity may only be represented at the tax administration by an agent possessing specific knowledge, especially a tax advisor, tax expert, person providing bookkeeping services.

 A foreign agent must first submit an application to the Ministry for National Economy about his intention to provide cross-border services as a tax advisor, tax expert and bookkeeper within the territory of Hungary. About the requirements and procedure of this application you may get more information on the following web page:

- In case of bookkeeping services:

„Bejelentőlap a könyvviteli szolgáltatási tevékenység határon átnyúló jelleggel történő gyakorlása megkezdésének és folytatásának, valamint az adatváltozás és a nyilvántartásból való törlés bejelentéséhez”

- In case of activities as a tax advisor, tax expert, certified tax expert:

„Bejelentőlap az adótanácsadói, az adószakértői és az okleveles adószakértői tevékenység határon átnyúló jelleggel történő gyakorlása megkezdésének és folytatásának, valamint az adatváltozás és a nyilvántartásból való törlés bejelentéséhez”

IMPORTANT: the non compliance with the ex-ante registration liability can mean the nullity of the agency.

 After this step the foreign natural person (e.g. legal representative, employee, member of the foreign company) who effectively represents the Hungarian taxpayer during the procedure must acquire a tax ID code from the tax administration using the form ’T34. The form can also be found on the English language webpage of the tax authority at http://en.apeh.hu.

The tax ID code is only used by the tax authority for identification of private persons, getting such an ID does not generate any tax liability; the data stored about the private individual qualify as tax secret and are only disclosed in cases and to persons specified by the law.

Also in case of the agency of a foreign company the effective contact person can only be a private individual, meaning that for example the legal representative, employee or member of the foreign company can effectively file the VAT refund application electronically using the form ’ELEKAFA, to do so this person must have an already mentioned tax ID code (form ’T34) and a registration to the client gate system.

 After getting a tax ID code the private individual must register itself to acquire a registration to the client gate system – which is used to electronically file the VAT refund application. The registration can be done in person:

• in any document bureau in Hungary; or at the central bureau of the person identification data and residence registration (at the Central Customer Bureau run by the Central Administration of Public Administration and Electronic Services and its Customer Centre; at the at the county seats and in Budapest (1096 Budapest, Vaskapu u. 33-35.; 1139 Budapest, Petneházy u. 6-8.; 1144 Budapest, Gvadányi u. 69.; 1132 Budapest, Kresz Géza u. 15.); or
• at the consular representations of the Republic of Hungary in any EEA Member State (the contact data of the consular representations can be found on the webpage )

If the foreign company acts as agent and the company does not have a Hungarian tax number then it must request one using the form ’T201. The form can also be found on the English language webpage of the tax authority at http://en.apeh.hu.

 A foreign agent can only act possessing a permanent authorisation. The company/person must also fill in the form ’T180 and in case of first authorisation it must also send the form in paper format to the first instance tax authority which is competent according to the seat of the represented taxpayer. On the form they must fill in – inter alia – data of the represented Hungarian taxpayer and also the fact that the foreign agent will be entitled to represent its Hungarian partner in the electronic VAT refund procedure (ELEKAFA box). A permanent authorisation for the foreign taxpayer must also be attached to the form, alternatively the sample on the supplementary sheet of the form can also be used.

 If there are any changes in the extent of the agency or any data of the representation compared with the original authorisation filed using the form ’T180 then this must also be communicated to the administration with a modification on the form ’T180, however this time the agent needs to file the form with the changes electronically and attach the scanned copy of the changed authorisation. The principal taxpayer will each time get a notification on the processing of the modification by the tax administration.

II. Rules of representation and maintaining connections, when the state tax authority acts as tax administration of the Member State of refund

1. The Hungarian tax administration will contact the foreign taxpayer filing the VAT refund claim on its electronic mailing address (via e-mail) indicated by the taxpayer on its refund application, unless the taxpayer opts for maintaining connections via the client gate system and the central electronic service system.

 In case of a contact via e-mail the tax administration will send its decision and any other notifications to the e-mail address specified on the taxpayer’s refund application. In such cases any petitions that the taxpayer does not send via the tax administration of the Member State of establishment to the Hungarian tax administration must be sent from the e-mail address specified in his application to the e-mail address specified by the Hungarian tax administration.

 If the taxpayer notifies the tax authority about the termination of its former electronic mailing address then all subsequent decisions and other notifications of the tax authority will be sent to the taxpayer by post, while the taxpayer will have to communicate its petitions by post or present them in person at the tax administration. This regulation must also be followed in cases when – in lack of an above described notification from the taxpayer – the tax administration concludes from the data at hand that maintaining connections with the taxpayer is not possible due to technical or other reasons.

 In case of maintaining connections via an e-mail address the decision, other notifications from the tax administration must be considered as delivered on the fifth day after the day when the document was sent, while any petition from the taxpayer will be considered as filed on the day when the tax administration receives it. The tax administration immediately notifies the taxpayer with a message sent to its e-mail address about its decision, other notification and the day on which these were sent, and about the date when it received the petition from the taxpayer.

In case of maintaining connections via e-mail the right to represent a taxpayer will only be examined by the tax administration of the Member State of establishment.

 2. When on the basis of the Hungarian tax administration’s register the taxpayer or its agent has a registration to the client gate system on the day when the VAT refund application was received, then the rules set for maintaining connections in electronic way must be followed, meaning that the tax administration is in contact with the person submitting the claim or his agent via the client gate and the central electronic service system.

 If the taxpayer wishes to maintain connections according to the rules set for maintaining connections in electronic way but it has not yet registered to the client gate system then it must proceed according to point I/2 of this information leaflet. Such a request for choosing this kind of contact must be communicated within 15 days from the day when the refund claim was received by the tax administration.

 The prescribed 30 days deadline available to file such a request and to perform registration is a term of preclusion, without the chance for submitting an application for extension.

 If the taxpayer does not file a request about choosing the preferred method to maintain connections, or the request is filed late, or the taxpayer or its agent falls in delay concerning the client gate registration or fail to do so, then the rules set for maintaining connections via e-mail must be applied in the first instance procedure.