When Can the Hungarian Tax Authority Cancel a Company’s Tax Number?

Introduction

A valid tax number is essential for any company operating in Hungary. If the Hungarian Tax Authority (NAV) cancels a company’s tax number, the business can no longer legally carry out economic activities. Therefore, it is important to understand the most common reasons for tax number cancellation and how companies can prevent it.

When can NAV cancel a tax number?

The tax authority may cancel a company’s tax number in several situations.

The company cannot be found at its registered office

If the company cannot be located at its registered office or the company sign cannot be found during an inspection, the tax authority may initiate tax number cancellation.

Official letters are undeliverable

If official letters from the tax authority are returned twice as undeliverable, this may lead to tax number cancellation.

Missing tax returns

Failure to submit mandatory tax returns despite warnings from the tax authority may result in the cancellation of the company’s tax number.

Failure to publish financial statements

Companies are required to publish their financial statements. Failure to do so may also result in tax number cancellation.

How can companies prevent tax number cancellation?

Companies can reduce the risk of cancellation by:

• submitting tax returns on time

• maintaining a valid registered office

• monitoring official communication from the tax authority

• publishing financial statements as required

👉 Further information:

Tax Number Cancellation in Hungary – NAV Procedure and Consequences