VAT Regulations

Due to VAT regulations set out by the European Union, and specifically by Hungary, we are legally obliged to charge 27% Hungarian VAT on all delegate registration fees regardless of the company’s country of origin or VAT registration status. 

In some cases where an exhibition booth is requested, Hungarian VAT may or may not apply.  Likewise, for sponsorship, Hungarian VAT may or may not apply. 

For a full overview of how VAT will be charged in your specific case, please refer to the below:

Clarification as to why VAT is charged on WYSE Travel Confederation Events being held in Europe

In Europe, conference registrations attract VAT, even for VAT-registered companies, due to specific rules and regulations governing the place of supply of services, particularly concerning event organisation.

Here are the main reasons:

1. Place of supply rules

• For business-to-business (B2B) transactions, the general rule is that the place of supply of services is where the customer is located. However, there are exceptions, particularly for services related to events such as conferences, exhibitions, and educational seminars.
• According to the EU VAT Directive, the place of supply for admission to events is where the event actually takes place. This means that if a conference is held in a Hungary, Hungarian VAT applies, regardless of where the attendee’s business is located.

2. Admission to events

Admission fees for conferences, trade fairs, and exhibitions are subject to VAT in the country where the event takes place. This ensures that the local tax authorities can collect VAT on activities happening within their jurisdiction.

3. Non-recoverable VAT

For foreign businesses attending conferences in Hungary, the VAT charged on registration is generally not automatically recoverable through the regular VAT return process. Instead, these businesses must use the VAT refund procedure for non-established businesses.

4. Uniform application across the EU

The EU VAT system applies these rules uniformly to ensure a fair and consistent tax environment across member states.

5. Revenue for host country

Hosting conferences generates economic benefits for the host country, including VAT revenues collected locally by the Hungarian tax authorities.

What is the EU Directive that mandates this?

The relevant legislation is the Council Directive 2006/112/EC (EU VAT Directive).
Specifically:

• Article 53: The place of supply for admission to cultural, artistic, sporting, scientific, educational, entertainment, or similar events (including fairs and exhibitions) is where those events actually take place.
• Article 54: Extends the same rule to services relating to such events, such as organiser services.

These articles ensure that VAT is charged in the country where the event is physically held, regardless of where the business customer is established.

Can VAT be claimed back and by whom?

Yes, Yes, VAT paid on conference registrations in Hungary can be reclaimed, depending on the company’s location and VAT status.

6. EU-based companies

Under the EU VAT Refund Directive (2008/9/EC), companies established in an EU member state can reclaim Hungarian VAT via the electronic refund process through their home country’s tax authority. The company must be VAT-registered and not established in Hungary. The refund claim must be submitted by 30 September of the year following the one in which VAT was incurred.

7. Non-EU-based companies

Under the 13th VAT Directive (86/560/EEC), non-EU companies may claim back VAT if reciprocity exists between Hungary and the company’s home country. Claims must be made directly to the Hungarian Tax and Customs Administration (NAV) and typically take several months.

Documentation and deadlines

Refund applications require:
-Original invoices
-Proof of payment
-Certificate of VAT/tax status from the home tax authority

Deadlines:
-EU companies: by 30 September of the following year
-Non-EU companies: typically within six months after year-end.

Professional assistance

Due to varying requirements and documentation standards, businesses often engage VAT recovery specialists to ensure compliance and timely processing of VAT refund claims for Hungarian-based events.