Range of simplifications and penalty changes proposed July 2025
The Hungarian tax office, National Tax and Customs Administration of Hungary (NTCA), has issued proposed changes to tax laws. These are now out to public consultation, and will come into effect from 1 July 2025.
Hungarian VAT law amendments
The changes to the VAT rules aim to: expand digital reporting; align invoice processes with EU rules; improve clarity in exemption rules; and tighten compliance requirements for specific sectors like travel, energy, and e-commerce. Also see our Hungary VAT guide. The 2025 changes include:
eVAT reporting updates
- Key changes include reclassifying 21 “warning” messages in the Online Invoice System to “error” messages, enhancing data consistency and paving the way for the future implementation of the Hungary eVAT transaction reporting. Warnings indicate reporting acceptance with errors, while errors result in rejection of the invoice reporting.
Enhanced Invoice and Receipt Reporting Obligations
Significantly updates digital reporting obligations:
-
Businesses must report all invoices, e-receipts, and equivalent documents.
-
Special rules apply to non-resident businesses using EU OSS/IOSS schemes—they must report data per their country of registration.
-
The Hungarian Tax Authority can now use all submitted data for audits and risk assessments.
- Additional amendments propose increasing penalties for non-compliance with the Online Invoice Reporting Obligation from HUF 500,000 to HUF 1 million, and introducing a data matching procedure that allows the Tax Authority to initiate a correction process if discrepancies are found between online reporting and VAT returns, requiring taxpayer corrections within 15 days.
Expanded Reverse Charge Rules for Traders
-
The reverse charge mechanism now applies to B2B supply of goods (under Section 34(1)(a)) only when the buyer declares in writing in advance that they are a taxable trader.
-
This means sellers must receive and retain this declaration before applying reverse charge, shifting responsibility to the buyer for VAT payment.
VAT registration threshold rise to HUF 18m
-
When a person is acting in a VAT-exempt capacity, the VAT base (as per Section 68) must be used when determining whether the HUF 18 million exemption threshold has been exceeded.
-
The changes introduce a the VAT registration threshold rise from HUF 12m to 18M.
Changes to Inheritance and Agricultural VAT Exemption
-
New rules where widows, heirs, or relatives inheriting a business/farm must actively choose to apply the individual exemption; otherwise, the exemption ceases.
-
This targets small family businesses and farms passing between generations.
Declaration Deadlines for Exemption
-
The declaration to opt for exemption must now be submitted by year-end of the previous year. If exemption ceases during the year, changes must be reported in accordance with the Tax Code.
Restrictions on Tax-Exempt Sales
-
Restrictions on the tax-exempt status from being used in transactions involving new means of transport, ensuring better tax integrity in vehicle sales.
New Invoicing Rules for Travel Agencies
-
Section 210/A introduces flexibility for travel agents: If the customer is not a taxable person, invoices no longer need to show the tax base and VAT amount. However, this data must still be reported separately to the tax authority.
Other Technical Amendments
-
Changes to unit measures (e.g., cubic meters replaced by MWh) for energy-related reporting.
-
Updated definitions of “total useful floor area” aligned with new architectural regulations.
-
Several annexes (10 and 11) are updated for detailed invoice and e-receipt reporting.
