Key takeaways
- Hungary VAT rates: The standard VAT rate is 27%, with reduced rates of 18% and 5%, plus a 0% rate for intra-EU and international transport services.
- Registration rules: There is no VAT threshold for foreign businesses, and non-EU companies must appoint a fiscal representative.
- Filing & penalties: VAT returns are filed monthly, quarterly, or annually, and late filings or payments can lead to fines up to HUF 500,000 and daily interest penalties.
Hungary VAT key facts (2026)
| Item | Hungary |
|---|---|
| Standard VAT rate | 27% |
| Reduced rates | 18%, 5% |
| Registration threshold (domestic businesses) | No threshold; optional exemption up to HUF 20 million (2026) |
| Registration threshold (non-resident businesses) | None – register from first taxable supply. €10,000 EU-wide distance-selling threshold for B2C sales (OSS available). |
| VAT return filing frequency | Monthly, quarterly or annual by VAT owed; new businesses file monthly |
| E-invoicing status | Real-time invoice reporting (Online Számla) since 2018; structured B2B e-invoicing planned from 2028 |
| Fiscal representative required for non-EU businesses? | Yes – non-EU businesses must appoint one |
Register for VAT in Hungary with Taxually: CrossTax handles your Hungary VAT registration, returns and fiscal representation.
Expanding your business to Hungary requires a solid understanding of its VAT (Value Added Tax) system. This guide provides a comprehensive overview of the Hungarian VAT landscape, exploring rates, registration, returns, and other essential aspects to help you navigate VAT in Hungary efficiently.
Updated October 2026: 18% rate scope, small-business exemption limit (HUF 20 million), new-business filing rule, annual return deadline, late-payment wording and 2026 Intrastat thresholds corrected, with new sections on e-invoicing, non-resident registration and refunds.
What is the Hungary VAT rate?
In Hungary, VAT is referred to as "Általános forgalmi adó" (AFA). The Hungarian VAT system includes a standard VAT rate of 27%, two reduced rates of 18% and 5%, as well as a zero Hungary VAT rate.
| Type of VAT | VAT Rate | Applicable Goods/Services |
|---|---|---|
| Standard VAT rate | 27% | All other taxable goods and services. |
| Reduced VAT rate (1) | 18% | Includes milk and dairy products, bread and other bakery products, and admission to open-air music events. |
| Reduced VAT rate (2) | 5% | Specific goods and services, including some foodstuffs, pharmaceutical products, medical devices, books (excluding e-books), newspapers and periodicals, hotel accommodation, writers and composers, and restaurant and catering services. |
| Zero VAT rate | 0% | Intra-community and international passenger transport. |
Registering for VAT in Hungary
There is no registration threshold for resident businesses in Hungary, although they can choose an exemption if their sales do not exceed HUF 20 million in 2026 (HUF 22 million from 2027). Foreign businesses with taxable activities in Hungary, but without a permanent establishment, must register regardless of their turnover.
In alignment with the rest of the EU, the distance-selling threshold in Hungary is €10,000. So if your cross-border sales to Hungary exceed this amount, VAT registration becomes mandatory. Businesses must also be registered for VAT in Hungary if they store products in the country or are part of a fulfillment program that includes Hungary, such as FBA (Fulfilled-by-Amazon).
To register, complete the necessary forms and submit them to the Hungarian Tax and Customs Administration. Upon successful registration, you will receive a Hungary VAT number, crucial for all VAT-related transactions. The entire process typically takes no longer than a couple of weeks.
Fiscal representative in Hungary
For non-EU-based businesses conducting taxable activities in Hungary, appointing a fiscal representative is mandatory. The representative helps in fulfilling VAT obligations and liaising with tax authorities and is jointly responsible for all VAT liabilities in the country.
Hungarian VAT return filing and penalties
Hungarian VAT returns must be filed electronically. Newly registered businesses file monthly in the year of registration and the following year, after which the following frequency of VAT return filing applies:
- Monthly return: Businesses owing more than HUF 1 million in VAT for the preceding year or those who are part of a VAT group.
- Quarterly return: Businesses owning between HUF 250,000 and HUF 1 million in VAT for the preceding year.
- Annual return: Businesses owing less than HUF 250,000 for the preceding year, provided they aren’t engaged in inter-community trading.
The deadline for Hungarian VAT returns and payments is the 20th of the month following the reporting period. For annual filers, the deadline is 25 February of the following year.
Failing to file a VAT return can lead to fines ranging from HUF 100,000 to HUF 500,000. Late VAT payments attract a late-payment surcharge (késedelmi pótlék), calculated for each day of delay and linked to the central bank base rate.
Hungarian Intrastat declarations
Intrastat declarations are required for businesses involved in intra-EU trade exceeding certain thresholds. In 2026, the threshold for arrivals is HUF 500 million, and for dispatches it is HUF 200 million. Declarations must be submitted electronically by the 15th of the following month for the supply of goods above that threshold.
Reverse charge mechanism in Hungary
The reverse charge mechanism is applicable in Hungary for intra-EU transactions and certain domestic transactions, transferring the VAT liability from the supplier to the recipient. This is particularly relevant for foreign suppliers without a VAT registration in Hungary.
E-invoicing and digital reporting in Hungary
Hungary does not yet require structured e-invoices for most B2B sales. Instead, businesses must report invoice data to the tax authority (NAV) in real time through the Online Számla system.
- Real-time invoice reporting (RTIR): started in 2018. Since 2020–2021 it covers almost all invoices, B2B and B2C, and applies to resident and non-resident VAT payers alike (EDICOM).
- Timing: invoicing software must send data immediately. Invoices made on NAV's online form are reported within 4 days, or 1 day if the VAT is HUF 500,000 or more (NAV Booklet 14).
- Sector mandates: electricity and gas traders must issue e-invoices from 1 July 2025, and water utilities from 1 January 2026.
- Next steps: after a public consultation, NAV plans phased structured e-invoicing from 2028, using Peppol. It is not yet law (vatcalc).
- eÁFA: NAV pre-fills draft VAT returns. The old ÁNYK filing software closes at the end of 2026.
How do non-resident businesses register for VAT in Hungary?
A foreign business must register before it starts taxable activity in Hungary. There is no threshold.
- File form T201 with NAV, electronically through the Client Gate or on paper.
- Attach a certified Hungarian translation of the certificate of incorporation, a specimen signature, and a tax residence certificate (NAV).
- Non-EU businesses must use a fiscal representative.
VAT refunds for foreign businesses
EU businesses not registered in Hungary claim Hungarian VAT online through their home tax authority. The deadline is 30 September of the following year. NAV decides within 4 months, which can extend to 8 months (NAV).
Key VAT deadlines in Hungary
- Monthly and quarterly returns and payment: 20th day of the month after the period.
- Annual returns: 25 February of the following year.
- Invoice data to NAV: immediately when issued from software.
- Registration: before the first taxable activity in Hungary.
- Refund claims (EU businesses): 30 September of the following year.
From 2026, returns use the new 2665 form and EU sales lists the 26A60 form (vatcalc).
Frequently asked questions
What is the VAT rate in Hungary?
Hungary has one of the highest VAT rates in the EU, with a standard rate of 27%. Reduced rates of 18% (for food and events) and 5% (for books, medicines, and accommodation) also apply, as well as a 0% rate for intra-EU and international transport.
When do I need to register for VAT in Hungary?
There is no threshold for non-resident businesses — VAT registration is required as soon as taxable activities begin. Resident businesses can choose an exemption if annual sales are below HUF 20 million (2026; HUF 22 million from 2027). The EU distance selling threshold is €10,000.
How do I register for VAT in Hungary?
Businesses register with the Hungarian Tax and Customs Administration (NAV). Once approved, you’ll receive your Hungarian VAT number within a few weeks.
Do foreign businesses need a fiscal representative in Hungary?
Yes. Non-EU businesses must appoint a fiscal representative, who is jointly responsible for compliance and VAT liabilities.
How often must VAT returns be filed in Hungary?
- Monthly – for new businesses (year of registration and the next year) or those owing over HUF 1 million
- Quarterly – for those owing HUF 250,000–1 million
- Annually – for those owing under HUF 250,000 and not trading intra-EU
Returns and payments are due by the 20th of the following month (or 25 February for annual filers).
Are Intrastat declarations required in Hungary?
Yes. Businesses must file Intrastat returns if annual EU trade exceeds HUF 500 million (arrivals) or HUF 200 million (dispatches) in 2026. Declarations are due by the 15th of the following month.
