European Commission urges Hungary to abolish Retail Tax The European Commission has issued a reasoned opinion to Hungary (INFR(2024)4022), urging it to align its retail tax regime with the freedom of establishment guaranteed under Articles 49 and 54 of the Treaty on the Functioning of
2025 changes to M-Sheet (M-form) domestic purchase invoice reporting Hungary is undergoing a significant digital transformation in its VAT reporting system, centred around the evolution of the M-sheet (domestic recapitulative statement). This will long-term be modified further by the EU VAT in the Digital Age
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
1 July 2025 VAT registration threshold increases from HUF 12m to HUF 18m Hungary will increase the annual sales threshold for compulsory VAT registration from HUG 12 million to HUF 18 million (approximately €44,170). Hungary has also implemented the EU SME VAT registration threshold scheme.
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
Proposal to shift basics from 18% to 5% reduced rate The Hungarian Parliament is reviewing a proposal to move a range a basic foodstuffs from the 18% reduced rate to the 5% rate. If approved, this would be implemented from 1 September 2025. The change
Raised thresholds for declarations for EU intra-community dispatches and arrivals to Hungary Hungary has raised its Intrastat reporting thresholds to the following levels from 1 January 2025: Arrivals HUF 400m from HUF 270m; and Dispatches HUF160m from HUF 150m. The Intrastat electronic reporting form requires
VAT compliance and reporting rules in Hungary 2025 Below is summary of the major rules provided under Hungarian VAT rules (LVAT (Act CXXVII of 2007) Hungarian VAT Act.), plus adoption of EU VAT Directive provisions. See our country VAT guides. Our VAT Calculator & VAT Filer products
1 July 2026 obligation to use structured e-invoicing to prevent fraud From January 1, 2025, Hungary’s e-invoicing mandate will extend to all business transactions within the electricity and natural gas sectors, per Government Decree No. 273/2007 (electricity) and Decree No. 19/2009 (natural gas). This applies
Reverse charge; base calculations and import VAT The Hungarian 2025 tax package introduces key changes to VAT regulations, approved by parliament, effective over the next several years. See our Hungary VAT country guide section. VAT Base Reduction for Refunds:Following the Novo Nordisk Case (C-248/23), VAT
