B.08.03 Amendment 0001 Hungary VAT Procedures.pdf

TAX EXEMPTIONS AND TAX RELIEF -

HUNGARY

1. Pursuant to the Agreement on Defense Cooperation Between the Government of the United States of America and the Government of Hungary, Articles XVI and XVII (DCA) this project is exempt from Hungarian Value Added Taxes (VAT). Accordingly, all proposals and invoices should be submitted to the U.S. Government with zero VAT. The time and costs associated with obtaining VAT exemption/reimbursements (administrative efforts, legal and consulting fees, etc.,) will not be separately compensated or reimbursed.

2. U.S. contractors are defined as non-Hungarian individuals and legal entities that are under contract or subcontract to the U.S. Government. U.S. contractors may utilize both the VAT exemption and reimbursement processes outlined below. Hungarian contractors that do not meet the definition of a U.S. contractor are to utilize the VAT reimbursement procedures outlined in paragraph 4.

3. VAT exemptions for purchases by U.S. contractors

a. Purchases by U.S. contractor’s on behalf of U.S. forces are exempt from VAT taxes.

b. U.S. contractors must fill out and sign the “Request for Tax Exemption Certificate” (Appendix 1). U.S. contractors should request as many certificates as estimated required for the completion of the project as every vendor/service provider in Hungary will require a separate certificate. There is no limit on the number of certificates that may be requested.

c. The completed “Request for Tax Exemption Certificate” should be provided to the USACE representative who will coordinate or facilitate coordination with the U.S. Embassy/Office of Defence Cooperation (ODC) for review and acknowledgment.

d. Once the Request has been acknowledged by appropriate U.S. representative, the Request will be forwarded to the Hungarian Ministry of Defence Economic Bureau (MoD DEB).

e. After review and approval the MoD DEB will issue the Tax Exemption Certificate (Appendix 2).

f. Before making a purchase the Tax Exemption Certificate must be provided to the sales person/service provider. After having proof of exemption the sales person/service provider can issue the invoice without tax (direct tax exemption procedure). The customer’s name on the invoice must be the same as the Contractor’s name, which is indicated on the Tax Exemption Certificate. Each sales person/service provider requires the original form of the Tax Exemption Certificate.

g. Tax exemption will only be granted if the name indicated on the invoice (customer’s name) is exactly the same as the name of the entity that submitted the request for tax exemption certificate.

4. VAT reimbursement

a. The VAT reimbursement procedures outlined below should be utilized by Hungarian contractors and U.S. contractors if VAT point of sale exemption is not possible.

b. Prior to initiating the VAT reimbursement process, the requester should collect all of the original pre-paid invoices including VAT and the original Tax Exemption Certificate.

c. The entity’s name on the invoice should match the requester’s name on the Tax Exemption Certificate.

d. To initiate the reimbursement procedure the IDIPL form should be downloaded from the following Hungarian National Tax and Customs Administration:

https://nav.gov.hu/nav/letoltesek/nyomtatvanykitolto_programok/nyomtatvanykitolto_progra mok_nav/kerelmek/IDIPL.html?query=IDIPL%2C.

e. The contractor should collect all related documents, to include the original Tax Exemption Certificate, the original pre-paid invoices including VAT and the prepared IDIPL form (two original IDIPL forms must be completed and signed by the Contractor). The Contractor is then responsible for submitting this information to the Large Taxpayers’ Tax and Customs Directorate of the National Tax and Customs Administration (Postal address: 1410 Budapest, Pf. 138.)

f. If the National Tax and Customs Administration accepts the request the VAT reimbursement will be transferred to the bank account which is indicated in IDIPL.

APPENDIX 1

KÉRELEM ADÓMENTESSÉGI IGAZOLÁS KIÁLLÍTÁSA IRÁNT

– külföldi fegyveres erők, nemzetközi katonai parancsnokságok és USA vállalkozók részére –

REQUEST FOR TAX EXEMPTION CERTIFICATE

– for foreign armed forces, international military headquarters and U.S. contractors –

Part 1 – Request 1. rész – Kérelem

1. Serial No. of International Military Residence Certificate *

Nemzetközi katonai tartózkodási igazolás száma Copy of this document is required A dokumentum másolata szükséges

2. Full Name of the

□ Unit (foreign armed force)**

□ International Military HQ**

□ U.S. contractor** Fegyveres erő/nemzetközi katonai parancsnokság/USA vállalkozó teljes neve

3. Unit/International Military HQ/ U.S. contractor address in home country Fegyveres erő/Nemzetközi Katonai Parancsnokság/USA vállalkozó címe country ország postal code irányítószám city város street, road etc. utca, út stb.

house nr., other data házszám, egyéb adat

4. Invoiced Organization’s (if it is different from box 3) (No PO BOX address!)

Szervezet számlázási full name teljes neve and address címe country ország postal code irányítószám city város street, road etc. utca, út house nr., other data házszám, egyéb adat

5. Requested exemption period - Mentesség időtartama (in case of exercise MUST NOT EXCEED 90 DAYS) (gyakorlat esetén nem haladhatja meg a 90 napot) (duration of the contract in case of U.S. Contractor) (USA vállalkozó esetén a szerződés érvényességi ideje) year év month hónap day nap from -tól until -ig

6. Purpose of exemption mentesség célja

□ VAT exemption Áfa mentesség

□ Excise duties exemption Jövedéki adó mentesség

7. The purpose of the stay tartózkodás célja

In case of armed forces and military HQ:

Name of exercise/military movement Fegyveres erő és katonai parancsnokság esetében:

gyakorlat/katonai áthaladás megnevezése

In case of U.S.

Contractor:

Name of the project, name of contracting parties and contract’s number projekt, szerződő felek neve és szerződés száma

8. Number of certificates needed - szükséges mentességi igazolások száma (One certificate is needed for each purchase or vendor including HDF units.)

9. Way of handover – takeover átadás-átvétel módja

□ by mail to the address in box 3* postai úton

□ personal takeover at HUN MoD* személyesen

□ via/by embassy/ODC* hivatali úton

10. Unit/HQ/U.S.

Contractor Point of Contact Kapcsolattartó személy name neve title beosztása (finance or S4) e-mail address e-mail címe

11. Date of request kérelmezés dátuma

12. Requester’s kérelmező name and signature neve és aláírása

Part 2/A – Certification for foreign armed forces, international military headquarters *** 2/A rész - Igazolás külföldi fegyveres erők, nemzetközi katonai parancsnokságok részére

□ Hereby I acknowledge that this unit/HQ stays no longer than 90 days in Hungary.

Ezúton igazolom, hogy ez a katonai alakulat/nemzetközi katonai parancsnokság nem tartózkodik 90 napot meghaladó ideig Magyarországon.

The authorized person’s A felhatalmazott személy name/signature neve és aláírása (Signature of the authorized person of the Embassy/Commander of the unit/ )

Part 2/B – Certification for U.S. Contractors 2/B rész - Igazolás USA vállalkozók részére

□ Hereby I acknowledge that this U.S. contractor acts by, for, or on behalf of U.S. forces in Hungary.

Ezúton igazolom, hogy jelen USA vállalkozó az amerikai haderő által vagy javára jár el.

The authorized person’s felhatalmazott személy name/signature neve/aláírása (Signature of the authorized person of the Embassy/ODC)

In case of U.S. Contractor: Hungarian tax identification number (if it is applicable) magyar adóazonosító szám (ha az USA vállalkozó rendelkezik vele)

* applicable only in case of more than 90 days deployment in Hungary. Csak 90 napot meghaladó Magyarországon történő tartózkodás esetén

** mark X or delete the incorrect lines. Jelölje X-szel a megfelelő sort!

*** not applicable if the requester has an International Military Residence Certificate. Nem alkalmazható, ha a kérelmező rendelkezik nemzetközi katonai tartózkodási igazolvánnyal.

Appendix 2

Exemption certificate