VAT in Hungary 2026: Rates (27%, 18%, 5%), Registration & Threshold
If you sell goods or services in Hungary, you need to know how VAT works. Hungarian VAT — ÁFA — has the highest standard rate in the EU at 27%, plus two reduced rates. This guide covers VAT in Hungary from the basics: the rates, VAT registration and the small-business threshold, and what changes in 2026.
VAT in Hungary: the basics
VAT in Hungary is called ÁFA (általános forgalmi adó — general turnover tax). It’s a consumption tax added at each stage of the supply chain and ultimately borne by the final customer. The key facts:
- Standard rate: 27% — applied by default to most goods and services, and the highest standard VAT rate in the EU.
- Reduced rates: 18% and 5% — for specific categories only (see the table below).
- Who charges it: any business making taxable supplies in Hungary, once registered for VAT.
- Reporting: Hungary uses real-time invoice reporting (Online Számla); VAT returns are usually filed monthly or quarterly.
Whether you must register — and whether you can use the small-business exemption — depends on your situation, covered in the sections below.
Hungary VAT rates 2026
| Rate | Applies to (examples) |
|---|---|
| 27% (standard) | Most goods and services — the EU’s highest standard rate |
| 18% (reduced) | Certain foodstuffs, hotel/accommodation services |
| 5% (reduced) | Books, certain medicines, new residential housing, district heating |
The 27% standard rate applies by default — a supply is taxed at 18% or 5% only if it specifically qualifies.
2026 change: beef drops to 5%
From 2026, the VAT on beef and certain offal falls from 27% to 5%, one of several targeted changes. It’s a reminder that reduced-rate categories shift over time, so verify the current rate for your specific product with NAV or your accountant.
The small-business exemption (alanyi adómentesség)
Hungary has a subjective VAT exemption for small businesses. The annual revenue threshold rises to 20,000,000 HUF in 2026 (up from 18M, and increasing further to 22M in 2027 and 24M in 2028). Under it you don’t charge VAT and can’t reclaim input VAT — useful if your costs carry little VAT. Note: a foreign company without establishment in Hungary generally cannot use this domestic exemption; check eligibility.
VAT registration threshold in Hungary
There are two different “thresholds” people mean, and it’s worth keeping them apart:
- The small-business (subjective) exemption threshold — 20,000,000 HUF in 2026. Below this annual turnover an established Hungarian taxpayer can opt to be VAT-exempt (no VAT charged, no input VAT reclaimed).
- The obligation to register. There is no minimum turnover before a foreign company must register: registration is triggered by the activity, not a sales figure. A non-established company typically must register from its first taxable supply in Hungary — local sales, warehousing/stock, certain imports, or distance sales once EU thresholds are crossed.
In practice a foreign company often has to register for Hungarian VAT before the small-business exemption is even relevant, because the domestic exemption generally isn’t open to non-established businesses.
VAT reporting
Hungary runs real-time invoice reporting (Online Számla), and from 1 July 2026 the VAT return’s input-VAT data reporting (M/K sheets) becomes more detailed. VAT returns are filed monthly, quarterly or annually depending on your size. See our guide to Hungary VAT registration for a foreign company.
FAQ
What is the VAT rate in Hungary? The standard rate is 27% — the highest in the EU — with reduced rates of 18% and 5% for specific categories.
What is the standard VAT rate in Hungary in 2026? 27%, unchanged for 2026.
What are the reduced rates? 18% and 5%, for specific categories only.
Is there a VAT registration threshold in Hungary? For a foreign (non-established) company there is effectively no threshold — you register based on the activity, usually from the first taxable supply. The 20,000,000 HUF figure is the small-business exemption threshold, which mainly applies to established taxpayers.
Can a foreign company use the 20M HUF exemption? Generally the domestic small-business exemption is for established taxpayers; a non-established foreign company usually can’t — verify your situation.
Updated: 2026-07-27 · Tax year 2026.
Selling into Hungary and unsure about VAT? Pair the 27% VAT picture with Hungary’s 9% corporate tax, or contact us for a tailored answer.