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Trade in Hungary
Imports and exports in Hungary are an important part of the country’s economy. It is estimated that the country will increase the total value of its exports in the coming years by approximately 9.3% every year. Also, Hungary will continue to assert its position as an important trade partner in Europe.
If you want to start a company that engages in import and export activities, our experts can help you with company registration in Hungary.
Imports to Hungary
The most important imported products are machinery and equipment. The country relies on these products to develop its heavy industry: mining, metallurgy, steel production as well as energy production. This imported equipment is also used to produce various foodstuffs and in the automobile industry.
Other imported items include raw materials, certain vehicle parts, fuels and electricity or packaged medicaments. Hungary’s import partners are Germany, China, Russia, Austria and Slovakia.
Hungarian exports
The most important products exported by Hungary include agricultural products, cars and vehicle parts, transport equipment, fuels, chemicals, textiles and other manufactured goods. It is estimated that the demand for products manufactured in Hungary will remain the largest in Europe, but exports will also grow to other countries. Germany is Hungary’s most important export partner, followed by the United Kingdom, France, Slovakia, the United Arab Emirates.
Hungarian companies that engage in trade activities need to observe the customs regulations regarding these types of activities on the Hungarian territory as well as the EU legislation for imports and exports. Trade between EU countries and third countries is subject to certain terms, according to EU’s common commercial policy.
Hungary imposes excise duty on tobacco and alcohol and business owners must also comply with the VAT obligations. The value added tax (VAT) has a standard rate of 27% but reduced rates apply for certain milk and bakery products (18%), books or journals (5%).
Since companies that develop import-export activities must pay various taxes, it means that they must also maintain the books of accounts which can trace their income, the taxes paid, the annual revenue, etc.
Considering this, it is important to address to a team of accountants in Hungary, who can be in charge with the daily and yearly accounting obligations of a business.
Our company registration experts in Hungary can help you with more information about taxes and tax compliance as well as detailed information about trade activities in the country.