The scope of the act on food chains has expanded

19 September 2017

According to the amendment of the act on the food chain and its control by the supervising authority which came into force on 16 June 2017, the companies that are not established in Hungary but registered for VAT purposes in Hungary and their activities fall under the scope of act on food chain, have a FELIR identifier, also have food chain supervisory fee obligation.

Who falls under the new scope of the act on food chain?

Based on the amendment, foreign companies that are VAT registered in Hungary but are not obliged to have permanent establishment in Hungary and are engaged in activities related to any stage in the food chain, i.e. production, processing or sale of foodstuffs, are obliged to pay a food chain supervisory fee. Taxpayers (including VAT registered companies as well) within the scope of the act on food chain have a FELIR number (technical identification number). The VAT registered companies can meet their supervisory fee declaration and payment obligations under this technical identification number, the question is, however, whether in the possession of a FELIR number any further administrative action is needed, or this FELIR number can automatically be used by the VAT registered companies to meet the food chain supervisory fee obligation.

The extent of the supervisory fee

The extent of the supervisory fee is 0,1% of the net sales revenue of the previous calendar year. If the amount of the supervisory fee is less than one thousand forints, it must be reported but the company does not have to pay the fee. The declaration must be made electronically on the website of NÉBIH by the authorized person registered at the Hungarian tax authority. It is important to note that in the case of failure or delay in the declaration or payment obligation, the authority may impose default penalty or late payment interest which can be levied up to HUF 5 million.


The returns for the supervisory fee must be filed by 31 May of the year subsequent to which the income is derived (the subject year). The food chain supervision fee itself must be paid in two, equal instalments, by 31 July of the year after the subject year, and by 31 January of the following year. This means that VAT registered foreign companies must first file their returns, for the year 2017, by 31 May 2018, and then pay the supervision fee by 31 July 2018 and 31 January 2019.

How can BDO help?

In case of further questions BDO Advisory Ltd. is at your service. We can help you in the interpretation of the law, consultations with the authorities, as well as the preparation and submission of the necessary forms.