Hungary VAT 2025

Standard VAT Rate:

• The standard Value Added Tax (VAT) rate in Hungary is 27%.

Reduced VAT Rates:

• Reduced VAT rates of 18% and 5% apply to specific goods and services.
• These reduced rates apply to items like:
  • Basic food products.
  • Pharmaceuticals.
  • Books and newspapers.
  • Certain services.

VAT Registration:

• Businesses operating in Hungary must register for VAT if their taxable transactions exceed specific thresholds.
• Foreign businesses conducting taxable transactions in Hungary may also be required to register.

VAT Returns:

• VAT returns are filed monthly, quarterly, or annually, depending on the business's turnover.
• Electronic filing is mandatory.

Intra-Community Transactions:

• Transactions with other EU member states are subject to specific VAT rules.
• The reverse charge mechanism may apply.

Imports and Exports:

• Imports into Hungary are subject to VAT.
• Exports to countries outside the EU are generally exempt from VAT.

VAT Refunds:

• Foreign businesses may be eligible for VAT refunds under specific conditions.
• Refund procedures are defined by Hungarian tax legislation.

E-commerce:

• E-commerce transactions are subject to Hungarian VAT rules.
• EU wide regulations also apply.

Real Estate:

• The sale of newly constructed real estate can be subject to VAT.
• The sale of older real estate may be exempt.

Small and Medium-sized Enterprises (SMEs):

• There are special VAT regulations that apply to SMEs.

E-receipts:

• Specific regulations regarding the information that must be contained on E-receipts.