In 2025, the Government submitted several tax packages in multiple phases, some provisions of which have already entered into force. The amendments are primarily aimed at reducing administrative burdens, ensuring legal harmonisation, and easing the tax burden on businesses. Below we summarise the most important changes affecting value added tax.
VAT returns and reporting
Frequency of VAT returns
A new rule applies to taxpayers who register for VAT liability retroactively: for periods prior to registration that are not covered by returns, the amendment introduces a monthly VAT return obligation instead of the current quarterly filing frequency.
In addition, the cases in which the Hungarian Tax Authority (NAV) may refuse to approve a change in VAT return frequency are expanded—for example, where bankruptcy, liquidation or voluntary dissolution proceedings are ongoing.
M-sheets – new reporting obligation
From 1 July 2026, in recapitulative statements it will become mandatory to indicate:
- not only the VAT charged on the invoice,
- but also the VAT is actually deducted,
- broken down by VAT rate.
In preparation for this, during 2025 the VAT return was supplemented with four new data fields which, on a voluntary basis, enabled the breakdown of deductible VAT linked to the individual VAT rates (5%, 18%, 27%), as well as the disclosure of the amount of VAT reduced by pro rata deduction.
However, in recapitulate statements related to returns filed for the tax assessment period that includes 1 July 2026, detailed data must already be reported on VAT actually deducted.
According to NAV’s information, the ÁNYK system will be discontinued after 31 December 2026. Therefore, taxpayers will need to switch to the eVAT (eÁFA) system—either via the web interface or through a machine-to-machine (M2M) connection.
As a result, from 2027 taxpayers will be exempt from submitting the M-sheets. Consequently, the expanded M-sheet data content prescribed from 1 July 2026 will in practice be mandatory only for a transitional period of roughly half a year. Nevertheless, this may require significant digital and data collection developments for those taxpayers who previously did not fulfil their recapitulative reporting obligations at this level of detail.
This especially affects taxpayers opting for the cash accounting scheme, where the time of the right to deduct may differ from the invoice issue date. If the right to deduct input VAT is exercised in installments (and not within the same month) for a given invoice, it is not sufficient to report the data only once on the M-sheets for that invoice.
The purpose of the change is therefore to transition to dynamic, deduction-based M-sheet reporting before the introduction of the eVAT system.
Invoicing and digitalization
Introduction of the e-receipt system
From 1 July 2025, the e-receipt system was launched and will gradually become mandatory. From 1 September 2026, the electronic transmission of receipt data to NAV will become mandatory for all receipts, and from 1 July 2028, traditional cash registers will be fully replaced by e-cash registers.
An e-receipt can be issued only via an e-cash register. A receipt is deemed issued when it is recorded in the “receipt repository” operated by NAV, which is a central electronic data storage system. From that moment, the receipt is also authentically accessible to the customer.
The data content of the e-receipt is more detailed than that of a traditional receipt, as it includes, among other things, item-level information and a breakdown by VAT rate. The customer accesses the receipt through an electronic application (e.g. a mobile app), so the document is not provided in paper form.
During the transitional period, paper-based and electronic receipts will coexist in practice. However, the aim is to establish a fully digitalised, centrally traceable receipt issuance system.
Mandatory electronic invoicing in the electricity and natural gas sector
Electricity and natural gas suppliers may issue invoices to non-residential users exclusively in electronic form; therefore, they will not have the option of paper-based invoicing.
Changes to VAT rates
Extension of the 5% VAT rate
From 1 January 2026, the sale of beef and related offal will also fall under the 5% VAT rate, similarly to poultry and pork.
Changes related to taxable person status
VAT grouping
From 20 December 2025, the following practical issues related to the operation of VAT grouping were clarified:
- If the group members do not appoint a new group representative within the deadline, the tax authority will mandatorily designate the group member with the highest tax performance as the representative. The aim is to prevent procedural delays which, under previous practice, were significantly prolonged due to the absence of a representative.
- The joint and various liability of group members and taxable persons outside the group is expanded; it now covers not only the payment of tax, but also legal consequences under the Act on the Rules of Taxation (Art.) (e.g. tax penalties, late payment interest).
Increase of the turnover threshold for exemption for small businesses
The turnover threshold for exemption for small enterprises will be increased in three steps from the current HUF 18 million, providing significant administrative and liquidity relief for smaller businesses. At the same time, calculating the threshold still requires particular care, as exceeding it may result in the loss of the exemption and a retroactive VAT payment obligation.
The new thresholds will be:
- from 1 January 2026: HUF 20 million
- from 1 January 2027: HUF 22 million
- from 1 January 2028: HUF 24 million
The change is particularly relevant for businesses whose turnover has been close to the threshold in recent years, and for those carrying out cross-border or mixed-taxation transactions, as incorrect classification of such transactions can easily lead to an incorrect determination of the threshold.
Movement of own goods as an exempt small enterprise
From 20 July 2025, so-called movement of own goods to another Member State—except for new means of transport—will be carried out under the status of exemption for small businesses. As a result, these transactions fall under the scope of the domestic exemption and count towards the turnover threshold.
Special transactions
Invoicing by travel organizers
When applying for the special VAT scheme, travel organizers, as a general rule, do not indicate either the taxable amount or the VAT amount on the invoice. However, if the customer ordering the travel service is a taxable person and makes a prior declaration to this effect, the travel organiser must indicate both the taxable amount and the VAT amount on the invoice, and must also report these data in the Online Invoice system.
In practice, it is therefore particularly important to clarify the customer’s status in advance, as incorrect invoicing may result in subsequent tax risks and correction obligations.
Change in the conditions for applying reverse-charge in the gas trade
From 20 July 2025, a condition for applying the reverse-charge mechanism is that the customer must make a prior written declaration that it qualifies as a taxable dealer.
In the absence of such a declaration, the transaction must be invoiced under the general rules, including VAT. The purpose of the amendment is to tighten the lawful application of reverse-charge and to curb abuses experienced during tax authority audits. Therefore, documentation between the parties and verification of the customer’s status become of key importance.
Further new reporting obligations
From 1 October 2025, indirect customs representatives must provide data in HUF on the taxable base and the tax amount.
From 2026, in the case of legal succession the predecessor’s tax number must also be reported, and in the case of VAT grouping the tax number of the affected group member must also be reported.
