EU harmonisations and compliance simplifications
The Hungarian government has issued a universal tax Bill to update a ranges of tax legislation in 2025. Most of the amendments are aimed at bringing legislation in line with EU rules; but also to provide compliance simplifications.
The changes are now out for public consultation until July 2025.
See our Hungarian VAT guide.
The changes are to the Hungarian VAT Act include:
1. Elevation of VAT Exemption Threshold to HUF 18 Million
The threshold allowing businesses to opt for VAT exemption has been increased from HUF 12 million to HUF 18 million. This change has been elevated from a government decree to statutory law, providing greater legal certainty. The updated threshold is specified in Section 188(1) of the VAT Act.
2. Amendments to Reverse Charge Rules for Natural Gas Trading
To combat VAT fraud in the energy sector, the reverse charge mechanism has been extended to domestic natural gas trading between taxable entities. Buyers are now required to make declarations, and data reporting units have been standardized to megawatt-hours (MWh). These changes are detailed in Section 142(1)(g) of the VAT Act.
3. Simplification of Invoice Requirements for Travel Agencies
To reduce administrative burdens, the data content requirements for invoices issued by travel agencies have been simplified. This aligns with the special VAT scheme for travel services under the margin scheme. Relevant provisions can be found in Chapter XV of the VAT Act, particularly Sections 206–211.
4. Postponement of Real-Time Receipt Data Reporting
The general obligation for businesses to provide real-time data on receipts has been postponed until 1 September 2026. This extension allows businesses additional time to adapt to the electronic receipt (e-receipt) system. The legal basis for this requirement is detailed in Annex 10 of the VAT Act.
5. Clarification on Termination of Tax-Exempt Status in Legal Succession
The VAT Act has been amended to specify cases where tax-exempt status terminates due to legal succession. This includes scenarios such as mergers or the transfer of business activities, aiming to streamline transitions and ensure clarity. These provisions are outlined in Section 5(2) of the VAT Act.
