Hungary VAT Rates 2026: 27%, 18% and 5%
If you sell goods or services in Hungary, you need to know the VAT rates. Hungarian VAT — ÁFA — has the highest standard rate in the EU at 27%, plus two reduced rates. This guide covers the 2026 Hungary VAT rates, the small-business exemption, and what changes in 2026.
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 and reporting
A foreign company often must register for Hungarian VAT before the exemption is even relevant — for example with local supplies, certain imports, or warehousing. Hungary also 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. See our guide to Hungary VAT registration for a foreign company.
FAQ
What is the standard VAT rate in Hungary in 2026? 27% — the highest standard rate in the EU.
What are the reduced rates? 18% and 5%, for specific categories only.
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: 2026-06-30 · 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.