Tax-free shopping and VAT refund in Hungary

Non-EU residents visiting the EU have the option to avoid paying VAT on their purchases in Hungary. This is possible either by shopping duty-free at an airport, or by making purchases at regular stores and reclaiming VAT upon leaving the EU and how does that work in practice, and what to expect will be explained below. Especially at airports, such customers will find several shops that advertise the option of duty-free shopping. This means that under certain conditions, these foreign customers do not have to pay VAT on their Hungarian purchases. However, this option is available not only at airports: as a non-EU resident, who can reclaim the VAT you paid for other purchases when leaving Hungary?

Foreign customers are eligible for duty-free shopping or a VAT refund under the following conditions:

• they must have permanent residency outside the EU
• the value of the purchase must be at least 175 EUR
• they must leave the EU within 90 days after the purchase
• when leaving the EU, you must verify your purchase at the border/at a customs office

Foreign customers can opt for duty-free shopping or a VAT refund only if they do not have permanent residency in the EU. However, this also means that these customers can apply even as EU citizens if they do not actually live in the EU. When making the purchase, such customers will be required to verify this information to the seller (cashier) at the shop, normally by showing them the passport and an address data /address card.

As for the exact refund currency and media, VAT is refunded in HUF and in cash by default, but it can be agreed on different terms with the seller. For example, customers can also receive a refund in EUR and to their bank account.