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If your company operates across borders, VAT in Europe is a key area to stay on top of. While the EU is working to streamline the rules, differences between countries still apply, from registration thresholds and reduced rates to e-invoicing and reporting requirements.
Understanding these rules is key for compliance. Our infographic provides a clear comparison of VAT differences across Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Latvia, Poland, Portugal, Romania, Slovakia and Ukraine.
VAT in Europe affects companies involved in cross-border sales, service delivery, e-commerce and tax compliance.
This topic is particularly relevant for:
Companies expanding into new EU markets, who must meet country-specific rules for VAT registration, invoicing and compliance from day one.
E-commerce and digital services providers, who must apply the correct VAT rates across borders and managing OSS/IOSS obligations.
Non-EU businesses selling into the EU, who need to understand local VAT rules, appointing fiscal representatives and handling import VAT.
Shared service centres and outsourcing hubs, who coordinate VAT compliance and reporting for multiple countries across one organisation.
Small and mid-sized companies without in-house tax teams, who balance limited resources with growing VAT compliance responsibilities.
Corporate finance, tax and compliance teams, who manage accurate filings, ensuring deduction eligibility and avoiding financial penalties.
BULGARIA
0% applies to exports or intra-community supplies.
*Applies to:
CYPRUS
0% applies to healthcare, education, insurance, real estate.
No VAT applies for transactions (goods or services) which take place within the EU or non-EU under certain circumstances.
*Applies to:
**Applies to:
CZECH REPUBLIC
0% applies to exports, intra-community supplies, transactions exempt from tax without entitlement to tax deduction.
*Applies to:
ESTONIA
0% applies to export of goods and certain listed supplies of goods and services.
VAT exempt supplies listed postal, health, social, education, insurance.
*Applies to:
**Applies to:
GREECE
0% applies to healthcare, education, insurance, and financial services
*Applies to:
*Applies to:
HUNGARY
0% applies daily papers (issued at least 4 times a week).
*Applies to:
**Applies to:
LATVIA
0% applies to exports, intra-EU supplies and international passenger transport, medical care, state-recognized education, most banking, etc.
*Applies to:
**Applies to:
POLAND
0% applies to intra-Community supply of goods and export of goods, etc.
VAT exempt applies to healthcare, education, insurance, financial services.
*Applies to:
**Applies to:
PORTUGAL
0% applies to international passenger transport and intra-community supplies.
*Applies to:
**Applies to (among others):
ROMANIA
Exempt from VAT applies to healthcare services, education services, sports services, etc.
*Applies to (among others):
**Applies to (among others):
SLOVAKIA
0% applies to exports or intra-community supplies, healthcare, education, insurance, financial services, etc.
*Applies to:
**Applies to:
UKRAINE
0% applies to export of goods, certain supplies of goods for vehicles provision of certain services.
*Applies to:
**Applies to:
BULGARIA
The turnover threshold is reached in 12 consecutive months.
CYPRUS
The turnover threshold is reached in 12 consecutive months.
In addition, the registration is mandatory in case sales invoices are issued in the EU.
CZECH REPUBLIC
Company becomes a taxpayer either the day after it exceeds the 1st threshold in 12 consecutive months, or from January 1 of following year (in that case, the 2nd threshold applies).
ESTONIA
The turnover threshold is reached in 12 consecutive months.
GREECE
Registration is mandatory for any business engaging in taxable activities, regardless of turnover.
HUNGARY
Registration obligation arises, among others, in such activities as: domestic sales in Hungary, transactions related to real estate, goods/assets purchased in Hungary and not shipped, organizing events, conferences, fairs.
LATVIA
VAT registration becomes mandatory in Latvia when the turnover threshold is reached in 12 consecutive months; a business receives services from EU or third-country suppliers, or a business provides services to VAT-registered entities in the EU.
Important: Registration must occur before receiving such cross-border services, regardless of transaction volume
POLAND
An entity is obliged to register as a VAT taxpayer if the turnover threshold is reached in 12 consecutive months or if sells certain goods, or if provides specific services.
PORTUGAL
The turnover threshold is reached in 12 consecutive months.
ROMANIA
The turnover threshold is reached. However, in case of any intra-community acquisition of goods in Romania OR an intra-community supply in Romania, the VAT registration in Romania becomes mandatory.
SLOVAKIA
The turnover threshold is reached in 12 consecutive months.
UKRAINE
The turnover threshold is reached in 12 consecutive months.
BULGARIA
CYPRUS
CZECH REPUBLIC
ESTONIA
GREECE
There is no threshold, all resident businesses must register.
HUNGARY
For residents is required for businesses engaging, among others, in domestic sales, moving their own goods into the country, participating in certain chain transactions or customs procedures, carrying out real estate-related transactions, purchasing goods that remain in Hungary, or organising events such as conferences and fairs.
LATVIA
POLAND
PORTUGAL
ROMANIA
SLOVAKIA
UKRAINE
BULGARIA
There is no threshold for non-resident businesses and registration for VAT is mandatory.
CYPRUS
There is no threshold for non-resident businesses and registration for VAT is mandatory.
CZECH REPUBLIC
There is no threshold for non-resident businesses and registration for VAT is mandatory.
ESTONIA
There is no threshold for non-resident businesses and registration for VAT is mandatory.
GREECE
There is no threshold for non-resident businesses and registration for VAT is mandatory.
HUNGARY
There is no threshold for non-resident businesses and registration for VAT is mandatory.
LATVIA
There is no threshold for non-resident businesses and registration for VAT is mandatory. Specific cases include distance sales, assembly of goods, excise goods, or intra-EU acquisitions over EUR 10,000.
POLAND
PORTUGAL
There is no threshold for non-resident businesses and registration for VAT is mandatory.
ROMANIA
There is no threshold for non-resident businesses and registration for VAT is mandatory.
SLOVAKIA
There is no threshold for non-resident businesses and registration for VAT is mandatory.
UKRAINE
| Country | Mandatory e-invoicing | Mandatory real-time reporting |
|---|---|---|
| Bulgaria | ✔ For public procurement contracts since November 1, 2019. | X However, SAF-T reporting will be required in 2026 for large enterprises, in 2028 for mid-sized enterprises and in 2030 to all other taxpayers |
| Cyprus | ✔ For B2G transactions. | X |
| Czech Republic | X | X |
| Estonia | ✔ Starting from July 2025, Estonian taxpayers are required to issue e-invoices upon the buyer’s request. | X |
| Greece | ✔ Mandatory since 2020 | ✔ Greece requires digital VAT reporting |
| Hungary | X Complete coverage with peace of mind | ✔ Just the basics, no strategic input |
| Latvia | ✔ Applicable for B2G transactions; from January 2026 also for all businesses in B2B. | X |
| Poland | X However, in 2026 it will be mandatory for businesses. | ✔ SAF-T reporting is mandatory for all taxpayers. |
| Portugal | X However, in 2026 it will be mandatory for all transactions. | ✔ SAF-T reporting is mandatory for all taxpayers. |
| Romania | ✔ For B2G, B2B and B2C transactions. | ✔ SAF-T reporting is mandatory for all taxpayers. |
| Slovakia | X However, in 2027 it will be mandatory for local transactions. | X |
| Ukraine | X However, electronic VAT invoices are mandatory. | ✔ SAF-T reporting is mandatory for large taxpayers; by 2027 it will extend to all taxpayers. |
| Country | Monthly | Quarterly | Simplified schemes for small businesses | |
|---|---|---|---|---|
| Bulgaria | ✔ | X | All businesses file VAT returns monthly. | X |
| Cyprus | ✔ | ✔ | Quarterly is for all businesses, but under certain conditions, monthly filings are allowed. | ✔ |
| Czech Republic | ✔ | ✔ | Quarterly is allowed if the turnover for the preceding calendar year did not exceed CZK 15,000,000 (EUR 602 197,50) | ✔ |
| Estonia | ✔ | X | All businesses file VAT returns monthly. | ✔ |
| Greece | ✔ | ✔ | Monthly for businesses with turnover above EUR 1,500,000; quarterly for others. | |
| Hungary | ✔ | ✔ | Monthly for businesses with net payable VAT exceeding HUF 1 million (approx. EUR 2,500) in the second year before the current one or in any quarter of the current year. Quarterly is allowed if total VAT from the start of the year stays below HUF 250,000 (approx. EUR 625). | ✔ |
| Latvia | ✔ | ✔ | Monthly is for businesses exceeding EUR 50,000 in turnover. Quarterly (or bi-annually) is for businesses below this threshold. | ✔ |
| Poland | ✔ | ✔ | Quarterly may be chosen by small taxpayers, i.e. entities whose turnover during the tax year does not exceed EUR 2,000,000, if 12 months have passed since their registration for VAT. | X |
| Portugal | ✔ | ✔ | Monthly for businesses with an annual turnover exceeding EUR 650,000. Quarterly for businesses with an annual turnover below EUR 650,000. | ✔ |
| Romania | ✔ | ✔ | Monthly is for all businesses, but for taxable persons whose turnover in the previous year was below EUR 100,000, quarterly filings are allowed. | ✔ |
| Slovakia | ✔ | ✔ | Quarterly is only for businesses with turnover lower than EUR 100,000 for 12 consecutive months. | ✔ |
| Ukraine | ✔ | X | All businesses file VAT returns monthly. | X |
Filing allowed only in local language
Bulgaria, Czech Republic, Greece, Hungary, Latvia, Poland, Portugal,
Romania, Slovakia, Ukraine
Filing allowed in both local and English language
Cyprus, Estonia
| Country | Goods or services with prohibited VAT deductions |
|---|---|
| Bulgaria | VAT on certain expenses like entertainment or personal use items may not be deductible, but consulting local regulations or a tax professional is recommended for precise information. |
| Cyprus | VAT can be claimed only for business related expenses. For example, VAT for entertainment expenses can be claimed only in case the entertainment expenses concern food, beverages etc., paid for the employees of the business. |
| Czech Republic | Goods or services that are not related to economic activity such as representation, gifts over certain amounts, employee benefits and cars for business purposes. |
| Estonia | Input VAT cannot be deducted for goods and services related to the reception of guests or the provision of meals or accommodation for employees (except for business trips). Input VAT deduction is restricted to 50% for passenger cars not fully used for business purposes. |
| Greece | Certain expenses like entertainment costs are non-deductible. |
| Hungary | VAT deductions are limited on vehicles and fuel, the purchase, renovation or construction of residential real estate, food, beverages and catering, entertainment and taxi services. 30% of the VAT on landline and mobile phone use cannot be deducted. 50% of the VAT on services used for renting, operating and maintaining a car cannot be deducted. |
| Latvia | Certain VAT deductions are restricted, such as 60% of the input VAT related to representation expenses; 20% of the input VAT on business-related car purchases; maintenance, repair and fuel is non-deductible; for cars valued over EUR 75,000, input VAT on purchase, maintenance, repair and fuel is entirely non-deductible. |
| Poland | VAT deduction is not allowed for accommodation and catering services, transactions that are non-taxable or exempt, or for invoices that reflect activities not performed or amounts that do not match actual transactions. |
| Portugal | Certain expenses are restricted from VAT deduction, such as expenses on travel, entertainment and hospitality; purchase, lease and running costs of passenger cars not used exclusively for business purposes, such as rent-a-car. |
| Romania | VAT is not deductible for the acquisitions made in relation to operations which are VAT exempt without credit or for any acquisitions which are not made for business purposes. Also, a flat rate of 50% VAT deduction right is allowed in relation to the acquisitions of cars and for the cars expenses which are used for both business and personal purposes. |
| Slovakia | VAT deduction of refreshment and entertainment is not allowed completely. Potentially, as of 1.7.2025, there will be 50% VAT deduction for business cars for personal use. |
| Ukraine | VAT deduction is not allowed if taxpayer hasn’t received properly and timely registered VAT invoice from the supplier. |
| Country | Mandatory fiscal representative for non-EU businesses | Exceptions |
|---|---|---|
| Bulgaria | ✔ | n/a |
| Cyprus | ✔ | Exceptions exist if the non-EU business is established in a country that has a mutual assistance agreement with Cyprus. |
| Czech Republic | X | n/a |
| Estonia | ✔ | Not required for Norwegian or UK businesses |
| Greece | ✔ | n/a |
| Hungary | ✔ | n/a |
| Latvia | ✔ | Applicable to IOSS, not for OSS. Specific exceptions may apply based on mutual agreements or specific circumstances. |
| Poland | ✔ | Not required for Norwegian or UK businesses |
| Portugal | ✔ | n/a |
| Romania | ✔ | n/a |
| Slovakia | ✔ | Non-EU businesses with obligation to register for any tax in Slovakia must choose a representative for postal delivery with place of business in Slovakia. |
Ukraine is not an EU member.
| Country | Penalties for late filing | Penalties for late payment |
|---|---|---|
| Bulgaria | Fines range from BGN 500 (EUR 255) to BGN 10,000 (EUR 5,113). | Interest of 5% is charged on the outstanding amount. |
| Cyprus | EUR 100 per return. | 10% of the outstanding VAT amount, plus daily interest at a rate determined by the Minister of Finance |
| Czech Republic | 0.05% of the assessed tax for each following day of delay but no more than 5% of the assessed tax. 0.05% of the determined tax deduction for each following day of delay but no more than 5% of the determined tax deduction. | Late payment interest is 8% plus the Czech National Bank’s repo rate on the first day of the half-year in which the underpayment occurred. For the first half of 2025, with a repo rate of 4%, the total interest rate is 12%. |
| Estonia | Penalties for late VAT return submission can be up to EUR 2,400 and for non-submission of the VAT return can be up to EUR 3,200. | Interest on late VAT payments is charged at 0.06% per day. |
| Greece | Penalties range from EUR 100 to EUR 2,500. | 10% of VAT due if paid within one year; 20% if paid between one and two years; 30% if paid after two years |
| Hungary | If the 15-day compliance deadline set by the tax authority is missed, a first penalty of HUF 100,000 (approx. EUR 250) applies. If the taxpayer fails to comply after a second 15-day warning, the penalty increases to HUF 500,000 (approx. EUR 1,250). | Late payment interest is calculated daily at the Hungarian central bank base rate (6.5% in 2025) plus 5 percentage points. It is charged monthly but not imposed if the annual amount is below HUF 5,000 (approx. EUR 12.5). |
| Latvia | Fines range from EUR 285 to EUR 700. For late submissions, penalties vary based on the delay: EUR 25-70 for 3–10 days, EUR 75-150 for 11–20 days, EUR 155-280 for 21–30 days, EUR 285-700 for more than 30 days late. | Penalty of up to 30% of the unpaid amount may be imposed, along with late-payment interest at 0.05% of the unpaid VAT per day. For late payment, a late penalty of 0.05% of the unpaid VAT amount per day may be imposed. |
| Poland | Fines range between 10 and 120 daily rates. The daily rate cannot be lower than 1/30 of the minimum wage, nor can it exceed 400 times the minimum wage. | If a tax liability is not settled by the statutory deadline, it automatically becomes a tax arrears, triggering additional obligations such as late payment interest, fines, or other penalties as defined by the tax authority. |
| Portugal | Fixed penalty from EUR 150 to EUR 3,750, depending on delay and whether the omission is voluntary or detected by authorities. | Interest of 4% per year on overdue VAT plus additional penalties between 30% and 100% of the unpaid amount in case of repeated infractions. |
| Romania | Fines range between RON 1,000-5,000 (EUR 197-985) for medium and large taxpayers and RON 500-1,000 (EUR 99-197) for small taxpayers and individuals. | Late payment incurs 0.02% interest and a 0.01% penalty per day of delay. Undeclared or incorrectly declared tax is subject to a non-reporting penalty of 0.08% per day, which may be reduced by 75% under certain conditions. |
| Slovakia | Fines range from EUR 30 to EUR 16,000. | 15% p.a. counted on daily basis. |
| Ukraine | UAH 340 (EUR 7.24) for the first violation of submission (fail to submit or late submission); for the second similar violation during the year fine is UAH 1020 (EUR 21.73) | For unintentional delays, the penalty is 5% of the unpaid tax if paid within 30 days, and 10% if paid later. Intentional delays are fined at 25% for the first case and 50% for repeated delays over 90 days. Additional penalties apply from the 91st day, with responsible individuals fined between UAH 85–170 (EUR 1.81–3.62) for a first violation, and UAH 170–255 (EUR 3.62–5.43) for repeated offences within a year. During martial law in Ukraine, no fines or penalties apply if the tax liability is paid within 30 calendar days of receiving the notification. |
VAT has a direct impact on your financial operations, from how you price your products to how much working capital you have available. Errors in VAT treatment can inflate costs, trigger double taxation, or delay input VAT recovery, affecting both profitability and cash flow. Inaccurate reporting may also raise red flags during audits or due diligence, creating obstacles in financing, partnerships or M&A deals.
As digital VAT systems roll out across Europe, authorities are increasing scrutiny through real-time data checks and cross-border reporting. Businesses that don’t keep up with local requirements risk losing access to simplified schemes, facing restricted deductions or dealing with administrative delays that can disrupt operations and damage customer relationships
Whether you need support with VAT registration, filings, e-invoicing, or cross-border reporting, our experts are here to help you stay compliant and efficient. We work with businesses of all sizes, from fast-growing e-shops to multinational groups, ensuring their VAT processes are accurate, timely and tailored to local rules.
Learn more about our international VAT services and how we can support your operations across Europe and beyond.
For a more detailed overview, we have prepared individual eBooks on VAT in the following countries:
Czech Republic | Hungary | Poland | Romania | Slovakia
How to shift the potential of payroll processing towards a more strategic function? The solution lies in the many benefits of payroll outsourcing.
Companies across the world may have different natures, goals and structure, but when it comes to business processes, decreasing the operational costs is quite the common desire. Outsourcing is often seen as a traditional method to stay within the budget, and while there is an emerging trend of putting more emphasize on value and innovation, the costs still remain as one of the most crucial factors when choosing a partner.
However, lower costs should not be the winning aspect when it comes to such sensitive functions as the payroll processing. When the vendor is chosen wisely, payroll processing can be shifted towards a more strategic, high-quality function of the company. Thanks to outsourcing, companies can gain access to unlimited possibilities for automation, best-breed IT solutions, continuous innovations, reduced risks and added-value solutions not only for the HR management team but, most importantly, for all employees.
These aspects gain more relevance when it comes to multi-country payroll processing projects – and their outsourcing with a payroll vendor. The most common challenges both the company and the vendor need to tackle, in all their complexity, are:
Streamlined and effective payroll processes with high level of automation
Standardized processes with accurate local and international reporting
Legislation compliance via system maintenance and local-specific customization
Business continuity, top-level security and data protection
Added-value, innovation-driven solutions for all users – HR teams and all employees
The decrease of costs for companies counts among the benefits of payroll outsourcing on its own, but there are further notable mentions. Overhead costs are one to contemplate, mainly when considering all the expenses related to the maintenance of an internal payroll staff – their salaries, holidays, sick leaves, education or back-up services. A payroll vendor can unload this financial burden by processing the whole agenda, while in the meantime, the client benefits from economy of scale, saving time and money with the optimization and automation. Moreover, as the payroll vendor is responsible for monitoring the payroll-related legislation and informing the client about respective changes, the financially demanding training of in-house staff is no longer necessary.
Other advantages are related to more technical aspects, such as the licensing fees for payroll processing engines. In this case, the majority of the costs are borne by the vendor. Unless the client requires access to the system, there are no further expenses related to the maintenance and implementation of changes initiated by the rather frequent updates of payroll-related legislation.
Touching upon the topic of legislation, a powerful telling argument for outsourcing the payroll function is full accountability and compliance, given that the agenda handles sensitive and confidential information. With the extremely challenging legislative requirements and frequent changes in the legislation related to payroll and labour law, shifting the responsibility to outsourcing is a safe bet for most companies. The payroll vendor is generally accountable for monitoring the local changes related to the provided services, incorporating them into day-to-day processes and maintaining the systems in 100% compliance with the current legislation – accurately, on time and with minimum possible costs.
While regular companies are very much dependent on the provider of their payroll engine whenever a change in legislation happens or a system customization is required, in case of outsourcing the payroll agenda, the vendor usually operates an internal IT team that is very familiar with the system functions and can process all complicated set-ups or advanced customizations internally, no matter the nature of projects or the volume of headcount. The amount of time and costs saved is very significant, considering that the delivery chain is simplified. Therefore, outsourcing not only diminishes the administrative burden of the client, but also eliminates the potential risks of non-compliance and resulting penalties from local authorities. The fact that the vendor is often liable for any damages caused by e.g. late payments of wages, via professional and extensive services covering the professional liability claim, may be considered as a convenient bonus.
Payroll outsourcing, besides all the mentioned qualities, can guarantee the continuity of processes under all circumstances, to distribute salaries on time and keep the level of employee satisfaction intact. Vendors have complex teams specializing in payroll, offering the possibility to back up another team member in case of unexpected absence. In addition, they have formalized business continuity and recovery plans, analysing and measuring different risk factors regularly and developing solutions for different situations. These precautions make sure that confidential data is safeguarded and can be retrieved even in case of natural disasters. The related processes are often certified and audited by internationally recognized certificates for quality and IT security management, such as ISO or ISAE.
In conjunction with the added value, payroll outsourcing must be designed in a way so that it can fully replace the internal payroll department, with streamlined communication and ad-hoc support while maintaining the level of comfort employees and the management got used to, when having their payroll team onsite. That is when the self-service functionality of the payroll and HR system comes into the spotlight.
As a part of the service delivery, the self-service portal offers the freedom to employees to handle numerous tasks on their own, without the need to ask for assistance their HR team. By granting login credentials to all employees, information about payslips, training materials, requests and many others become easily accessible. The portal also provides direct contact to a payroll accountant, who is ready to answer any incoming questions – liberating the internal HR team from the tasks involved, enabling them to take up more strategic roles.
The rocket science of business growth lays in the elimination of administrative burden and shifting the focus to core company capabilities. A self-service portal for employees and HR teams offers more efficient automated processes with higher transparency, with access to payroll and HR documents in a secure environment, access to pre-agreed payroll calendars and customized real-time reports, alerts and notifications, easing the management and supervision of the whole company.
Data security is a topic with always increasing significance, as technological advancements require a competitive system to keep sensitive information safe from inappropriate exposure. Notably, data breach is quite common and mostly caused by an internal team. The self-service portal limits the access to confidential materials and ensures extra security by hosting them on the systems of the payroll vendor. The access management is a strictly transparent and documented process, enabling a regular review of all accesses and actions.
The outsourcing of payroll processes reinvents the functions of vendors and companies. The responsibilities of service providers reach beyond the accurate, compliant and efficient exercise of the agenda, as they are taking up the role of innovators and leaders of new strategic values. Businesses, on the other hand, are expected to make the wise decisions and liberate their management from operations than can be fully automated, with more security and precision – for a lower cost.
Focus on growing your business while we take care of your payroll. Our payroll outsourcing services ensure compliance, accuracy and efficiency across multiple countries. All tailored to your structure, systems and people. From payslips to reporting, we handle it all, so you can save time, reduce risks and gain peace of mind.
Over the past years we have developed specialized international teams of consultants to provide full-range services related to transfer pricing. We have vast experience with hundreds of companies of various size, coming from many different sectors and countries.
Our experts help you to effectively address all aspects related to transfer pricing policy in your company and make sure you meet the documentation regulatory requirements. From initial review of transactions and examination of policies, through design of the most suitable transfer pricing strategy, to management of required documentation and dealing with statutory authorities, we are ready to cover full support you might need when dealing with such a complex matter as transfer pricing.
Check our comprehensive overviews on transfer pricing in Europe – more precisely, the local regulatory frameworks in the Czech Republic, Hungary, Poland, Romania and Slovakia. In our free eBooks, which are available for download, you can read more about the arm’s length principle, the documentation including its types, general rules and deadlines, methods of transfer pricing documentation, advance pricing agreements and penalties.
Keeping up to date with the latest legislation in the field of taxes may be difficult, not to mention the ever-changing deadlines and obligations. To make it all a lot easier, our experts created tax calendars for Europe in an easy-to-follow, comprehensive format for 2025, including all the necessary dates and duties you should respect in order to avoid penalties and sanctions. Download our free calendars to have everything tax-related at a hand’s reach from the Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine.
Missing a deadline can lead to penalties, but with Accace, you stay one step ahead. Our local experts offer tailored support for filings, planning and advisory, helping you meet every requirement in line with the Romanian tax calendar. Explore our full range of tax advisory and compliance services.
Labour law and employment is an integral part of every company, but on top of that, the complexity of HR administration has grown significantly in recent times. With the increase of expansions and global mobility, enabled by liberated markets, labour law in Europe, along with local legislation and the differences between country regulations, gains even more importance.. To tackle all compliance issues and gain proper navigation in labour-law processes, a comprehensive support is a must, mainly for companies who operate in multiple countries. We provide not only consultancy concerning employment-related matters or GDPR but also offer the design and implementation of tailored internal processes, policies, procedures, standards and documentation related to client-specific employment relationship.
The latest labour law guidelines with legislation applicable for 2025 provide a broad overview of the topic and our expert know-how on labour law and employment from the Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine. The free eBooks elaborate on basic rules such as the entitlement to work for residents and non-residents, employment contracts, probationary period, conditions for the termination of employment, social contributions and income tax, working time, annual paid leave, unpaid leave, employee benefits, temporary work characteristics and an overview of applicable legislation.
Understanding and applying labour law in Europe is essential to maintaining a compliant and productive workplace. At Accace, we provide expert labour law consultancy to help you manage employment relationships, contracts, internal policies, and day-to-day HR administration. With our support, you can confidently handle your employer obligations while staying aligned with local regulations.
Global company formation is a key step for businesses aiming to embrace expansion and globalization. However, establishing, developing, and maintaining a business on an international level demands significant attention, time, and effort due to variations in local regulations and ever-changing legislative frameworks. With an immense network of local experts and advisors, we support your company formation in Europe and ensure full compliance with local and global requirements in all jurisdictions, while also guiding you in selecting the proper form of business.
Besides the most common forms of businesses, such as the limited liability company or joint stock, there is a broad variety to choose from, so it is crucial to be aware of the benefits and drawbacks related to them. Our free guidelines on company formation in the Czech Republic, Hungary, Poland, Romania and Slovakia provide the necessary insight into the legal forms of businesses, the minimum capital and contribution needed, requirements on minimum documentation, shareholders, the process of registration, including a general overview of corporate taxes, duties, fees, penalties, investment incentives and other related aspects.
Explore also our guide for international expansion, which contains an useful overview of 15 countries for investors and gain a concise yet insightful overview of global company formation facts.
Expanding your business internationally can be complex, but it doesn’t have to be. Our global company registration services are designed to take the stress out of the process, offering tailored solutions to ensure your success in any market. With our expert guidance, you’ll gain the confidence to navigate local regulations, secure compliance, and choose the ideal corporate structure—all while saving time and resources.
Let us help you establish your business globally with ease and precision.
Compliance in the fiscal areas is crucial for any company who wishes to operate a successful business. However, local tax systems may be difficult to follow due to their complexity, mainly in case of a multi-country presence of a corporation. Different obligations and deadlines on direct or indirect taxes, regulatory matters or tax authority enquiries round up to a sensitive agenda in need of expert approach.
Our local tax departments prepared comprehensive tax guidelines for Europe, introducing local taxes form the Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine, to help you better understand the local specifications and gain an insight into statutory obligations. The eBooks available for download go into detail, among others, on matters related to corporate income tax, withholding tax, transfer pricing, personal income tax, property tax, motor vehicle tax, value-added tax and taxes on capital. Be well-equipped with the necessary knowledge to make better decisions for your business in the EU market!
While our tax guidelines for Europe give you a solid starting point, Accace goes further with dedicated tax advisory in Europe and in over 60 locations across the globe. Our team provides tailored support to help you understand local tax rules, ensure full compliance, and identify opportunities to optimize your tax setup. Whether you’re launching a new venture or managing an established business, we’re here to simplify your tax obligations.
The gross monthly salary under permanent employment is subject to multiple taxes and contributions paid by the employer and the employee. Therefore, its important to calculate the net income in order to get a good understanding of earned wages after taxes, taking into consideration also some possible tax bonuses for children or non-taxable parts of the tax base. Our experts prepared salary calculators for Europe, to help you calculate the net income in the Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine, and to provide a quick indicative reference of gross and net earnings.
An Advance Pricing Agreement (APA) is an agreement between a taxpayer and a tax administrator that aims to avoid any transfer pricing disputes, by determining the arm’s length price for a controlled transaction.
Our infographic on advance pricing agreements is a sum-up of characteristics of APA in Czech Republic, Hungary, Poland, Romania and Slovakia.
CZECH REPUBLIC
No possibility of extension, but after three years, the application can be submitted again
HUNGARY
(Possibility to extend by max. 3 years if conditions remain unchanged)
POLAND
(Possibility to extend by max. 5 years if conditions remain unchanged)
ROMANIA
Extension is possible in case of long term contracts; the legislation does not provide an effective maximum period
SLOVAKIA
(Possibility to extend by max. 5 years if conditions remain unchanged)
A large multinational developer company was requiring complete consultancy in the field of transfer pricing in several countries they operate in. We provided the full scope of the service, from start to end.
CZECH REPUBLIC
Administrative fee – CZK 10,000 (approx. EUR 390)
The amount of the fee depends on the number of transactions assessed, or on the number of permanent establishments; regardless of whether it is a unilateral, bilateral or multilateral APA.
HUNGARY
Depending on the number of jurisdictions taking part in the APA, filing fees vary as follows:
Unilateral APA – HUF 8,000,000 (approx. EUR 21,000)
Bilateral APA – HUF 12,000,000 (approx. EUR 31,000)
Multilateral APA – HUF 12,000,000 (approx. EUR 31,000)
Act CL of 2017 on the Rules of Taxation effective from 1 February 2024: (1) The fee for the procedure to establish the arm’s length price shall be HUF 8 million in unilateral proceedings and HUF 12 million in bilateral or multilateral proceedings. Payment of the fee in instalments or deferred payment shall not be permitted.
In the case of proceedings for APA extension or modification, the fee is 50 percent of the fee paid in the original procedure. If the APA request is rejected or withdrawn, the HTA returns 85 percent of the fee already paid pertaining to the APA procedure. The pre-filing consultation is subject to an administrative fee. The fee for a pre-filing consultation is HUF500,000 (approx. USD1,780) per each consultation.
POLAND
1% of the value of the transaction that is the object of the agreement. However, in the case of:
Unilateral APA:
Bilateral or multilateral APA – min. PLN 50,000 (approx. EUR 11,800) and max. 200,000 PLN (approx. EUR 47,000)
Renewal fees are half of the amount of the fee for the renewed APA.
ROMANIA
For large taxpayers and other taxpayers with consolidated value of transactions higher than EUR 4,000,000:
For other taxpayers and consolidated value of transactions lower than EUR 4,000,000:
SLOVAKIA
Unilateral APA – EUR 10,000*
Bilateral and multilateral APA – EUR 30,000
*half amount applies to the taxpayer with the index of tax reliability „high“
Application responsibility: The tax administrator issues the APA on the basis of an application filed by the taxpayer. In other words, the tax administrator cannot issue the APA “ex officio”.
Language options: The application for the APA, to which the TPD shall be enclosed, too, must be filed in local language only*.
*except Hungary (where English, French, and German languages are also accepted) and Slovakia (where TPD might be accepted also in other language , however the tax authority might additionally request for the TPD submission also in Slovak language)
Legally recognised corporations in Europe take on many forms. We decided to shed some light on useful legislation insights, general incorporation requirements and characteristics of a LLC or Limited Liability Company in Europe.
Moreover, we decided to compare the legal aspects of LLCs in the Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine to provide a comprehensive yet clear overview of the requirements in the region.
Dive into the general features of LLCs, such as the basic characteristics of founders, minimum capital nature and limits, types of contributions and payment deadlines, guarantees required by shareholders, incorporation time, obligation of VAT registration, and much more.
CZECH REPUBLIC
Natural persons or legal entities
No. of founders: Unlimited
HUNGARY
Natural persons or legal entities
No. of founders: Unlimited
POLAND
Natural persons or legal entities
No. of founders: Unlimited
ROMANIA
Natural persons or legal entities
No. of founders: up to 50
SLOVAKIA
Natural persons or legal entities
No. of founders: up to 50
UKRAINE
Natural persons or legal entities
No. of founders: Unlimited
CZECH REPUBLIC
Minimum capital: CZK 1
Minimum contribution: CZK 1
Type of contribution: Monetary / non-monetary
HUNGARY
Minimum capital: HUF 3,000,000
Minimum contribution: HUF 100,000
Type of contribution: Monetary / non-monetary
POLAND
Minimum capital: PLN 5,000
Minimum contribution: PLN 5,000
Type of contribution: Monetary / non-monetary
ROMANIA
Minimum capital: RON 1
Minimum contribution: RON 1
Type of contribution: Monetary / non-monetary
SLOVAKIA
Minimum capital: EUR 5,000
Minimum contribution: EUR 750
Type of contribution: Monetary / non-monetary
UKRAINE
Minimum capital: Not specified
Minimum contribution: Not specified
Type of contribution: Monetary / non-monetary
*2 – 4 weeks at the notary
*after submitting documents to a state register
CZECH REPUBLIC
CZK 6,000
HUNGARY
No fee for the court procedure
POLAND
PLN 600
(PLN 350 in case of registration via S24 platform)
ROMANIA
From February 2017, the Trade Register fees for incorporation have been removed, only Official Gazette publication fees are applicable
SLOVAKIA
EUR 150
UKRAINE
No state fee for registration
About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and approximately 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 60 jurisdictions with more than 7,000 professionals, we support over 80,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 800,000 pay slips globally.
