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Generally, businesses are entitled to recover Hungarian VAT incurred on expenditure on goods and services (known as 'input VAT') used for business purposes other than those specifically blocked (see below).

In so far as the goods and services are used for the purposes of the taxable transactions, taxable persons are entitled to deduct the following from the VAT which they are liable to pay:

1. Ìý

   •ÌýÌýÌýÌý The VAT payable related to the acquisition of goods or services, passed on by another taxable person.

2. Ìý

   •ÌýÌýÌýÌý The VAT payable or due in respect of acquisitions of goods – including intra-EU acquisition of goods – and acquisition of cross-border services, including advance payment for cross-border services subject to reverse charge.

3. Ìý

   •ÌýÌýÌýÌý The VAT paid on imported goods.

4. Ìý

   •ÌýÌýÌýÌý The VAT paid as part of an advance payment.

Businesses that make only exempt supplies cannot recover input VAT.

Businesses that make both taxable and exempt supplies can partly recover input