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NAV Representation for Foreign-Owned Companies in Hungary

  • Writer: kiskarcsu
    kiskarcsu
  • Jan 21
  • 3 min read

Operating a company in Hungary as a foreign owner often means dealing with the Hungarian tax authority (NAV). While Hungary offers attractive business opportunities, its tax system is formal, detail-oriented, and strictly enforced. For foreign entrepreneurs, even small compliance mistakes can quickly lead to audits, penalties, or serious operational risks.

Professional NAV representation is not just useful — in many cases, it is essential.


What Is NAV Representation?

NAV representation means legal representation and professional support before the Hungarian tax authority in all tax-related procedures, including:

  • tax audits and inspections,

  • compliance checks,

  • tax authority inquiries and official notices,

  • prevention of tax number cancellation,

  • handling penalties, late payments, or tax arrears.

Instead of reacting after a problem arises, proper representation helps manage communication with the authority in a controlled, legally sound manner.


Why NAV Procedures Are Risky for Foreign Entrepreneurs

Foreign-owned companies face specific challenges when dealing with NAV:

  • unfamiliar Hungarian tax rules and deadlines,

  • language barriers in official procedures,

  • different accounting and documentation standards,

  • lack of insight into how NAV evaluates risks and initiates audits.

NAV procedures are formal and deadline-driven. A delayed or incorrect response may escalate a minor issue into a serious compliance problem.


Former NAV Experience – A Key Advantage

One of the most important elements of effective NAV representation is understanding how the authority thinks and operates.

With prior experience inside the Hungarian tax authority (NAV), we are able to:

  • anticipate how audits are initiated and structured,

  • identify risk factors before they trigger enforcement actions,

  • communicate with NAV in a way that aligns with authority expectations,

  • reduce unnecessary confrontation and procedural escalation.

For foreign entrepreneurs, this insight often prevents costly outcomes and prolonged disputes.


Our NAV Representation Services

We provide comprehensive legal support for foreign-owned Hungarian companies, including:

  • representation during tax audits and compliance inspections,

  • preparation and review of responses to NAV inquiries,

  • coordination with accountants during authority procedures,

  • prevention and handling of tax number cancellation,

  • management of tax arrears, penalties, and missed filings,

  • legal support in crisis situations, restructuring, or liquidation.

Our role is to protect the company’s legal position while ensuring continued operation whenever possible.


Prevention First: Avoiding NAV Problems Before They Start

The most effective NAV representation often happens before an official procedure begins.

We place strong emphasis on:

  • reviewing company structures and tax positions,

  • identifying compliance gaps early,

  • aligning accounting practices with legal expectations,

  • ensuring consistency between contracts, invoices, and tax filings.

This preventive approach significantly reduces the likelihood of audits and enforcement actions.


Clear Communication in English

NAV procedures can be stressful — especially when conducted in a foreign language.We provide clear, practical explanations in English, so foreign owners always understand:

  • what the authority requires,

  • what risks exist,

  • what decisions need to be made,

  • and how each step affects the business.

No unnecessary legal jargon — only actionable guidance.


A Trusted Partner in Authority Matters

Foreign entrepreneurs choose professional NAV representation because they need:

  • reliability in high-risk situations,

  • authority-level expertise,

  • clear strategy instead of reactive problem-solving,

  • long-term legal and tax security in Hungary.

Our goal is not only to resolve current issues, but to stabilize the company’s future.


Contact Us – NAV Representation for Foreign Entrepreneurs

If your Hungarian company is facing a tax audit, compliance inspection, or authority inquiry — or if you want to prevent problems before they arise — professional NAV representation can make a critical difference.


Contact us to discuss your situation and receive clear, strategic guidance from day one.

 
 
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