Published: May 15 2023
Moving to Hungary or simply sending or receiving personal belongings can involve customs fees and taxes. Understanding the customs fees, regulations and procedures will ensure a smooth process, whether you're relocating or shipping items to Hungary. In this blog post, we'll explore what custom fees are, when they apply, and how to calculate them for your personal belongings when importing them to Hungary.
What are Customs Fees?
Customs fees are taxes and duties imposed on goods that cross international borders. When items are shipped or transported to another country, these fees are charged to ensure that goods meet standards and comply with local laws. Customs fees generally consist of import duties, taxes (such as VAT), and various processing charges.
When Do Customs Fees Apply to Personal Belongings?
Customs fees apply to most goods imported into Hungary, whether they are new or used. However, if you're relocating to Hungary, you may qualify for a duty-free exemption for your personal belongings depending on your circumstances. To be eligible for this exemption, you must satisfy the following conditions:
- You must be moving your primary residence to Hungary after living abroad continuously for at least 12 months.
- Your personal belongings must have been in your possession and use for at least six months before moving.
- The items should be intended for the same purpose and use as in the previous residence.
- Importation must occur within six months of establishing your new residence in Hungary.
- You must not sell, lend, or dispose of the duty-exempted items within one year after import.
Remember, exemptions apply to reasonable quantities of personal belongings, and not everything will be exempt from customs fees. For example, vehicles, goods for commercial use, and restricted items will still be subject to taxes and duties.
Types of Customs Fees for Personal Belongings in Hungary
There are several types of customs fees that may apply when importing personal belongings to Hungary:
- Import duties: These are taxes imposed based on the classification of the items according to the Combined Nomenclature (CN) code. Import duties may vary from 0% to 17% of the value of the item.
- Value-added tax (VAT): VAT is applied to the customs value of personal belongings, assessed as the purchase price, shipping costs, and insurance. The standard VAT rate in Hungary is 27%.
- Customs processing charges: These fees depend on the customs broker's services and the complexity of the shipment.
How to Estimate Customs Fees for Personal Belongings
The actual amount of customs fees may vary depending on the value and classification of the goods. To estimate the fees, you could follow these steps:
- Determine the customs value: This might be the purchase price, plus shipping and insurance costs.
- Classify the items: Identify the CN codes for each item which determine the respective import duties.
- Apply import duties: Apply the appropriate import duty rates to the customs value of each item.
- Calculate VAT: Apply the Hungarian VAT rate (27%) to the customs value, plus the import duties.
- Add customs processing charges: Contact a customs broker to get an estimate of other possible charges.
Understanding customs fees when importing personal belongings to Hungary and ensuring compliance with local regulations can avoid delays and unexpected costs. Be prepared to provide documentation on the value, origin, and classification of the items to facilitate efficient customs clearance. Considering the services of a professional customs broker is a good idea, as they can help navigate the complex customs procedures and provide accurate estimates of the fees involved.