Hungary VAT guide
VAT was introduced in Hungary in 19998. The Hungarian VAT system is governed primarily Act CXXVII of 2007 on VAT, alongside the Tax Administration and Tax Procedures Acts, which sets out rules for returns, submission deadlines, payments and compliance obligations.
VAT compliance is administrated by the National Tax and Customs Administration.
Menu
What is the VAT rate in Hungary?
27%
The standard VAT rate in Hungary is 27% which is the highest in the European Union. The standard rate applies for most of the goods and services.
Reduced rates: 18% and 5%
The 18% rate applies to certain basic foodstuffs (such as dairy and cereal products).
The 5% rate applies to a limited range of goods and services, including medicines, certain medical equipment, books and newspapers, and selected food products (such as milk, eggs, poultry and fish).
VAT registration in Hungary
Resident businesses
Hungarian-established businesses must register for VAT once annual turnover exceeds the small business exemption threshold (currently HUF 12 million). Businesses below this threshold may opt for a VAT exemption regime.
Non-established businesses
There is not VAT threshold in Hungary for non-established businesses. VAT registration is required from the first taxable supply in Hungary, unless One-Stop Shop (OSS) rules apply.
Distance sales: Businesses carrying out cross-border sales of goods are not required to register for VAT if their total EU-wide distance sales are below the €10,000 threshold. Once exceeded, VAT must be accounted for in the customer’s country via OSS or local VAT registration.
VAT return filing and deadlines
In Hungary, the VAT return frequency depends on the taxpayer’s annual net VAT payable.
- Where the annual net VAT payable is below HUF 250,000, the filing frequency is annual.
- Where the annual net VAT payable is between HUF 250,000 and HUF 1,000,000, the frequency is quarterly.
- Where the annual net VAT payable is HUF 1,000,000 or more, the filing frequency is monthly.
Newly VAT-registered taxpayers generally file monthly returns during the initial period of registration.
Deadlines
- Monthly and quarterly VAT returns are due by the 20th day of the month following the reporting period.
- Annual VAT returns are are due by 25 February of the following year
- If a deadline falls on a weekend or public holiday, it is deferred to the next working day
- Filing extensions are generally not available
eInvoicing requirements
Hungary does not currently operate a full mandatory eInvoicing system. Instead, it operates a real-time invoice reporting (RTIR) regime, which is a core VAT compliance requirement.
There is currently no general mandate requiring invoices to be issued in a structured electronic format for all transactions. Paper and PDF invoices are still permitted, provided they meet Hungarian VAT requirements. However, certain sector-specific mandates apply:
- From 1 July 2025, mandatory eInvoicing applies to B2B transactions in the electricity and natural gas sector.
Hungary is expected to transition towards a full mandatory eInvoicing system in line with the EU VAT in the Digital Age (ViDA) initiative, with broader obligations likely to be introduced in the coming years.
Comply – Global VAT compliance management
Our VAT compliance solution, Comply helps companies manage their complex, country-specific tax requirements including Hungary’s VAT obligations.
Using AI and machine learning, our technology puts your VAT data through over 300 automated VAT rules, checking for errors, and preparing VAT returns for approval and submission. Comply provides a full audit trail for the Hungarian Tax Authorities.
Deadlines and submission
VAT returns are due to be submitted by the 20th day of the month following the reporting period. If the deadline falls on a weekend or a bank holiday the filing due date is moved to the next working day. In Hungary, filing extensions are generally not available.
Businesses can complete and submit their VAT returns and VIES/EC Sales List returns electronically via the Hungarian’s tax authority online portal. Returns may be filed either directly by the taxpayer or through an authorised representative.
Electronic public road trade control system (EKAER)
The Electronic Public Road Trade Control System (EKAER) system was introduced in 2015 by the Hungarian Tax Authority. Its purpose is to reduce VAT fraud in the road transport industry by monitoring the movement of goods transported on public roads.
The system also introduced the concept of high-risk goods (now referred to as “notifiable goods”), for which reporting was required even where the transport vehicle was not subject to road toll obligations.
As of 1 January 2021, the scope of the EKAER reporting obligation was decreased significantly. Currently, reporting is generally required only for goods classified as notifiable goods (previously high-risk goods), as defined by Hungarian legislation.
Failure to comply with EKAER reporting obligations, or incorrect reporting may result in a default penalty of up to 40% of the value of the transported goods.
Real-time reporting
Real-time invoice reporting (RTR) was introduced in Hungary on 1 July 2018 and has since been gradually expanded. Today, it represents a central VAT compliance requirement.
All VAT-registered businesses (including non-established entities with a Hungarian VAT registration) must report invoice data electronically to the National Tax and Customs Administration (NAV) via the Online Számla system.
This obligation applies to:
- Domestic B2B transactions
- B2C transactions
- Intra-EU and export transactions
- The reporting requirement covers nearly all invoices issued by Hungarian VAT-registered taxpayers, regardless of value
Invoice data must be transmitted in real time or near real time, typically immediately after issuance, using structured XML format through compatible invoicing software or API integration.
Exemptions and special cases
Certain transactions reported via the One Stop Shop (OSS) for cross-border B2C supplies may be excluded from Hungarian real-time reporting obligations.
Rise Above the Rest
Maximise your potential with our full suite
VAT compliance solution
Rise above complex indirect tax challenges with Comply, Fintua’s revolutionary platform for global indirect tax compliance.
VAT recovery solution
Recover automates the process of identifying and reclaiming VAT on business expenses, both domestically and internationally, helping you boost your bottom line.
Integrated payments solution
Pay simplifies international payments, reducing complexity and costs while ensuring compliance with local regulations and improving financial visibility.
eInvoicing solution
eInvoice enhances efficiency by digitising your einvoicing process, ensuring compliance across multiple jurisdictions and improving cash flow management.