Foreign travellers’ VAT refund / exemption

Goods sold to (purchased by) foreign travellers (passengers) for a price exceeding EUR 175 are exempt from VAT if the goods exit the territory of the EU as the travellers’ (passengers’) travel luggage.

Kulcsszavak: foreign traveller VAT refund VAT exemption application for VAT refund personal and travel luggage

Travellers (private individuals) are eligible for VAT exemption / refund if:

 

Conditions of VAT exemption:

 

There are two ways to be exempted from VAT:

  1. VAT refund (ex post):

In this case, the party selling the goods (merchant) issues the invoice inclusive of VAT to the traveller and fills out 3 copies of the form ‘VAT refund sheet for foreign travellers’ of which the seller retains 1 copy and gives 2 copies to the traveller.

® When the goods exit the territory of the EU, the customs authority verifies exit on the above form and returns 1 copy to the private individual.

® The validated and stamped refund sheet and the original invoice must be returned to the merchant so that they can reimburse the VAT amount to the private individual.

VAT refund can thus be requested from the merchant who sold the goods to the private individual.

 

  1. The seller sells the goods to the private individual free of VAT:

Besides the invoice, the completed form ‘VAT refund sheet for foreign travellers’ is also needed and a copy validated and stamped by the customs authority must be returned to the merchant to prove that the goods exited the EU within 90 days. In this case, traders/merchants advance the tax exemption at their own risk

 

Foreign travellers can appoint an agent to apply for VAT exemption on their behalf by way of a power of attorney.

 

VAT refund is paid in cash and HUF, but the traveller and the merchant can agree otherwise.

The goods musts exit the territory of the EU within 90 days from the date of the purchase.

Invoice certifying the sale of goods

‘VAT refund sheet for foreign travellers’ (3 copies, the original is retained by the seller, one copy is retained by the customs authority and one copy is returned to the private individual who must return it to the seller).

The customs authority of exit (which can be the customs authority of another Member State).

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Sections 98–99 and points (10)-(11) of Section 259 of Act CXXVII of 2007 on Value Added Tax

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