How to Calculate Duties and Taxes on Imports to Hungary involves a multi-step process governed by the European Union’s (EU) common customs framework and national tax laws. Import duties and taxes depend on the goods' classification (HS Code), customs valuation, and country of origin. For commercial shipments, the National Tax and Customs Administration of Hungary (NAV) confirms that import duties are waived only for goods valued at or below the €150 Duty De Minimis Threshold. Crucially, Value Added Tax (VAT) is due on all commercial imports, meaning the Tax De Minimis Threshold is effectively €0.
As a member of the European Union, Hungary applies the EU's Common Customs Tariff (CCT) to all goods imported from outside the EU. The duty rate is determined by the product's classification under the Harmonized System (HS) and the country of origin. The classification system used is the 10-digit Integrated Tariff of the Community (TARIC) code, which extends the 6-digit international HS code and the 8-digit Combined Nomenclature (CN) with two additional digits to account for specific EU trade measures, such as anti-dumping duties or tariff suspensions. The duty rate can be reduced or eliminated entirely if a Free Trade Agreement (FTA) or preferential trade arrangement exists between the EU and the country of origin, provided the goods meet the relevant Rules of Origin.
The calculation of import duties and taxes in Hungary is based on the customs value of the imported goods. The primary method for determining this value, in line with the World Customs Organization (WCO) and the EU's Union Customs Code (UCC), is the Transaction Value. This is generally the price actually paid or payable for the goods when sold for export to the EU. The dutiable value for customs duty calculation is based on the Cost, Insurance, and Freight (CIF) value to the EU border or port of entry. This means the cost of the goods, plus the cost of transport and insurance up to the point of entry into the EU, are included in the value on which the duty is calculated.
To calculate import tax in Hungary, specifically the Value Added Tax (VAT), the standard rate of 27% is applied to the total landed cost. Hungary’s standard VAT rate is one of the highest in the EU. The VAT calculation basis is the Customs Value (CIF), plus the Customs Duty, plus any other charges (like excise duties) up to the first destination in Hungary. This is how import duty is calculated in Hungary and how the final landed cost is estimated. Importers must use the correct 10-digit TARIC code to ensure the correct duty rate is applied and to avoid delays or penalties from the National Tax and Customs Administration (NAV). The €150 Duty De Minimis Threshold means that shipments with an intrinsic value below this amount are exempt from customs duties, but VAT is still due on all commercial imports, making the Tax De Minimis Threshold €0. For B2C eCommerce, the Import One Stop Shop (IOSS) is a special regime that allows sellers to collect the 27% Hungarian VAT at the point of sale for shipments under €150, simplifying the process and ensuring faster customs clearance.
Determine the Customs Value (CIF): Calculate the total value of the goods, plus international freight and insurance costs up to the EU border. This is the basis for Customs Duty.
Calculate Customs Duty: Multiply the Customs Value (CIF) by the specific duty rate (0% to 17%+) corresponding to the 10-digit TARIC code and the country of origin. If the intrinsic value is €150 or less, the duty is 0% (Duty De Minimis).
Determine the VAT Base: Add the Customs Value (CIF), the calculated Customs Duty, and any other charges (e.g., excise duties, internal transport costs) up to the first destination in Hungary.
Calculate Import VAT: Multiply the VAT Base by the Hungarian standard VAT rate of 27% (or the reduced rate of 18% or 5% if applicable). This is the final import tax calculator Hungary uses for commercial goods.
Shipment Value: €100 (Intrinsic Value). Duty: 0% (Below €150 Duty De Minimis). VAT: 27% is still due on the full value (Tax De Minimis is €0). If the seller uses IOSS, the buyer pays VAT at checkout; otherwise, VAT is paid at import.
Shipment Value: €500. Duty: Full duty rate (e.g., 4.2%) applies. VAT: 27% is applied to the Customs Value + Duty + other charges. Both duty and VAT are paid at the time of import clearance.
Assuming the VAT De Minimis is €150: The VAT exemption for low-value goods was abolished; VAT is due on all commercial imports, regardless of value.
Using the wrong HS Code: Using a 6-digit HS code instead of the required 10-digit TARIC code can lead to incorrect duty rates, delays, and penalties from the NAV.
Ignoring the 2025 VAT Deferral Rules: Importers must ensure their indirect customs representative meets the new, stricter 'reliable taxpayer status' requirements to utilise the import VAT self-assessment/deferral scheme in 2025.
Hungary, as part of the EU, operates the Import One Stop Shop (IOSS) for B2C distance sales of goods valued at €150 or less. This scheme allows the seller to collect the 27% Hungarian VAT at the point of sale, making the import VAT-exempt at the border and streamlining customs clearance. A significant national rule for 2025 is the tightening of regulations around the import VAT self-assessment and deferral mechanism. To clear goods without immediate payment of the 27% VAT, the indirect customs representative must now meet strict criteria, including being a monthly VAT filer and having a 'reliable taxpayer status,' which increases compliance complexity for importers.
The calculation is based on the formula: (Customs Value + Duty + Excise) x Hungarian VAT Rate (Standard 27%). The Customs Value is typically the CIF value (Cost, Insurance, Freight) to the EU border.
Yes, the duty-free limit (Duty De Minimis Threshold) is €150 intrinsic value. Shipments below this value are exempt from customs duties, but they are still subject to the 27% VAT.
The standard Value Added Tax (VAT) rate in Hungary is 27%, which is applied to the total value of the goods, plus duty, plus shipping and insurance costs. Reduced rates of 18% and 5% apply to specific categories of goods.
Customs value is primarily determined using the Transaction Value method, which is the price paid or payable for the goods. For import duty calculation, this value is generally based on the Cost, Insurance, and Freight (CIF) terms to the EU point of entry.