From 1 January 2008, requests to form a VAT group can now be made jointly by any group of companies which are established in Hungary and qualify as taxable persons and related parties for VAT purposes .
VAT groups allow members to be treated as a single taxpayer for VAT purposes. This was previously only available to financial institutions.
All group members (and all Hungarian members of the company group even if not part of the VAT group) must undertake to be jointly and severally liable for the group’s VAT obligations.
Requests must be made to Hungarian Tax Authority whose permission is also required to dissolve a VAT group or allow any member to leave it.
