Last updated: October 2026
The Hungarian VAT system is harmonised with the EU VAT Directive. Below we summarise the most important rules and the special features of the Hungarian system.
VAT rates
- 27% standard rate, which applies to all supplies that are not reduced-rate or exempt
- 18%: certain dairy products and certain cereal- and flour-based products (e.g. bakery products), and admission to occasional open-air events
- 5%: among others
- certain medicines and medical devices
- books, newspapers and periodicals
- district heating
- internet access services
- restaurant and catering services (food and non-alcoholic beverages prepared on site)
- commercial accommodation services (since 2020; a separate tourism development contribution is also payable)
- certain basic foods (e.g. pork, poultry, eggs, milk, fish and, since 2026, beef)
- admission to live performances
- new residential property, subject to conditions; this reduced rate is scheduled to expire at the end of 2026, subject to transitional rules
VAT-exempt supplies
- certain supplies in the public interest (e.g. universal postal services, healthcare, education, public service media)
- certain other exempt activities under the EU VAT Directive (e.g. insurance, financial services, gambling, the sale of land other than building plots)
- exempt supplies with an option to tax (e.g. letting of real estate, sale of real estate more than two years after first occupation)
Date of supply
VAT generally becomes chargeable on the date of supply, i.e. when the transaction is performed. Special rules apply in the following cases:
- Advance payments: VAT is chargeable on the date the advance payment is received.
- Periodic settlement (e.g. rent, or supplies from a consignment stock invoiced monthly): generally the payment due date. The law sets limits on this; as a rule, the date of supply cannot be later than 60 days after the last day of the settlement period.
- Intra-Community acquisitions: the date the invoice is issued, but no later than the 15th day of the month following the month of acquisition.
Invoicing
Content requirements
Invoice content requirements follow the EU VAT Directive. For invoices issued in a foreign currency:
- the VAT amount must always also be stated in HUF
- for the HUF conversion, the official exchange rate of the Hungarian National Bank (MNB) applies, or, if the taxpayer opts for it, the selling rate of a domestic bank or the ECB rate
In certain cases, the invoice must include a statutory wording, e.g. “self-billing” or “reverse charge”.
Invoicing software and e-invoices
Invoicing software must meet the requirements of a separate decree. These include continuous numbering without gaps or duplicates and no possibility of subsequent modification or deletion. Electronic invoices are subject to special rules on issuing, sending and archiving. If the parties agree in writing, the customer may issue the invoice instead (self-billing). Retail outlets must issue receipts using online cash registers connected to the tax authority.
Real-time invoice reporting (Online Számla)
Invoice data must be reported to NAV’s Online Számla system:
- since July 2020: all domestic B2B invoices, regardless of the amount
- since January 2021: B2C invoices and invoices issued to foreign customers (intra-EU and export)
Invoices issued with invoicing software must be reported automatically, without human intervention, as soon as they are issued. Invoices issued in other ways must be reported within a short statutory deadline.
eVAT (eÁFA) – draft VAT returns prepared by NAV
Since 2024, NAV prepares draft VAT returns based on online invoice data, cash register data and customs data. Taxpayers review and complete the draft and then submit it, either on the eÁFA web interface or through an automated machine-to-machine (M2M) interface. Reconciling NAV’s data with the company’s own accounting records is therefore a key compliance task. We support our clients with this; see M2M and eVAT readiness support.
Outlook: VAT in the Digital Age (ViDA)
The EU’s ViDA package was adopted in 2025. From 1 July 2030, it introduces mandatory e-invoicing and digital reporting for intra-EU B2B transactions. Hungarian rules are expected to be gradually aligned with it.
Input VAT deduction
Non-deductible input VAT
Input VAT on the following items is not deductible, unless the goods or services are resold or directly used in a taxable supply (e.g. by a car rental company):
- purchase of passenger cars
- fuel for passenger cars
- passenger car maintenance and repair (50% non-deductible)
- passenger car rental and leasing (50% non-deductible)
- parking fees, road tolls and similar charges for passenger cars
- food and drink, hospitality, entertainment, taxi services
- construction and purchase of residential property
- telephone services (30% non-deductible)
VAT returns
VAT returns are filed monthly, quarterly or annually, depending on the amount of VAT payable and the taxpayer’s status. The deadline is the 20th day of the month following the return period (for annual filers, 25 February of the following year). Input VAT is offset against output VAT in the return.
VAT refunds
A VAT refund can be claimed if the refundable amount reaches HUF 1 million (monthly filers), HUF 250,000 (quarterly filers) or HUF 50,000 (annual filers). Lower amounts are carried forward. NAV generally pays the refund within 75 days. Shorter deadlines apply in certain cases, e.g. to “reliable taxpayers”. Businesses not established in Hungary claim refunds through the EU refund procedure (for EU businesses) or the reciprocal refund procedure (for non-EU businesses), or through a VAT registration in Hungary.
Non-EU companies with taxable transactions in Hungary may need a fiscal representative. See our VAT compliance services.