Hungary VAT (2026): 27% Standard Rate, Registration and Filing Rules
Hungary is the outlier at both ends of the EU VAT map. It has the highest standard rate in the Union at 27%, and one of the lowest registration thresholds at HUF 12 million. Any business trading into Hungary needs to understand both facts, plus the domestic Online Számla e-invoice mandate, which is separate from the EU-wide ViDA timetable.
- 27% standard, plus 18% and 5% reduced rates. The 27% is the highest standard rate anywhere in the EU and has been unchanged.
- Register at HUF 12 million turnover (about €30,000) — a low threshold that catches businesses earlier than most EU states.
- Non-EU businesses normally need a fiscal representative in Hungary, and must notify NAV within 30 days of exceeding the threshold.
- Returns are monthly, due by the 20th, plus two supplementary half-year returns each year.
- Online Számla applies to B2B invoices — a domestic e-invoicing rule that is separate from ViDA.
1. Hungary VAT rates 2026
| Rate | Value | Where it applies |
|---|---|---|
| Standard | 27% | Most taxable supplies and services, and all sales where no reduced rate applies |
| Reduced | 18% | Certain dairy and bakery products, and admission to open-air cultural events |
| Reduced | 5% | Basic foodstuffs, books, newspapers, medicines, restaurant and catering services, internet access, district heating, and qualifying new housing |
Two points that are commonly missed. First, Hungary has three rates, not two — the 18% tier sits between the standard rate and the 5% essentials rate, and it is the one most often forgotten when a supplier quotes "the reduced rate". Second, the 27% standard rate is the highest in the EU, and there has been no legislative move to reduce it; if your templates or software still carry a lower figure, they are out of date.
Last verified: 27 September 2026. Sources: European Commission VAT rates framework and the National Tax and Customs Authority (NAV). Confirm with NAV before filing.
2. What 27% does to your pricing
Hungarian VAT is the customer's money, not yours — but it changes what the customer actually pays, and it changes your cash flow and your competitiveness. On a net price of €100:
| Country | Standard rate | Customer pays |
|---|---|---|
| Hungary | 27% | €127.00 |
| Germany | 19% | €119.00 |
| France | 20% | €120.00 |
| Malta | 18% | €118.00 |
That is an €8.00 difference against Germany on the same net price. Scaled up, a business with €1,000,000 of net turnover collects €270,000 in output VAT rather than €190,000. You remit the difference either way, but a Hungarian customer comparing your price against a local supplier's is comparing gross figures, and the gross figure is where Hungary's rate bites.
The practical consequences are that quoted prices to Hungarian consumers should be gross, that margin comparisons against EU competitors need the rate stripped out before they mean anything, and that a business with Hungarian revenue carries a larger VAT settlement to fund between collection and remittance.
3. The registration threshold
Hungary's threshold is HUF 12 million of annual taxable turnover, approximately €30,000. That is one of the lowest in the EU, and it is the reason a great many more businesses need a Hungarian VAT registration than would in France or Germany.
Because the threshold is low and the notification window is short, the most common failure mode is not choosing not to register — it is registering late. A business that crosses HUF 12 million mid-year and hears about it a quarter later has already missed the 30-day notification. Track turnover against the threshold from the first invoice rather than at year end.
For a broader comparison of registration thresholds across all member states, see the EU VAT Registration for Small Businesses guide.
4. How to register with NAV
Registration is handled by NAV. Expect to assemble the following:
- Company registration certificate and articles of association.
- Tax identification number for the entity.
- Director's passport or national identity document.
- Proof of business activity — typically two or three sample invoices or contracts showing supplies made in Hungary.
- Power of attorney if you are appointing a fiscal representative, which non-EU established businesses generally require.
- Signed application form submitted to NAV.
The proof-of-activity requirement is the one that catches foreign businesses out. NAV wants to see that you are genuinely supplying in Hungary, so a Hungarian client invoice or contract is far stronger evidence than a business plan. If you have not yet made a Hungarian sale but expect to cross the threshold, ask a Hungarian adviser how NAV will treat the application on the strength of a signed contract alone.
5. Returns and deadlines
Hungary runs a monthly return cycle, due on the 20th of the month following the period it covers. So the return for January is due by 20 February. On top of that, Hungary requires two supplementary returns each year, filed in July and January, each covering the preceding half-year — a summary check the ordinary monthly filings do not replace.
Two practical points. First, a 20th deadline gives you slightly less room than a 25th deadline elsewhere, so a short month still catches people. Second, if you are operating through the One Stop Shop, the OSS return replaces the domestic B2C return but not the domestic B2B return — you need both until you are outside the scope of local filing entirely.
6. Online Számla e-invoicing
Hungary operates the Online Számla system, under which invoices between VAT-registered businesses must be issued through the government's online invoice reporting system. This is a domestic Hungarian requirement and it is easy to conflate with the EU-wide ViDA e-invoicing package, which is a separate timetable with different scope.
If you invoice Hungarian VAT-registered customers, two things follow. Your invoices must carry the elements Hungarian rules require, and they must be reported through the Online Számla channel. Treating Hungary as "just another EU member state" and leaving this to a generic export is the most common way businesses get it wrong.
The UBL / Peppol E-Invoice Kit produces structured XML you can feed into a reporting channel, and the EU invoice requirements guide sets out the field-level detail that Hungary's rules build on.
7. Reverse charge and OSS
For B2B services supplied to a VAT-registered business elsewhere in the EU, the place of supply normally follows the customer, not Hungary, so Hungarian VAT is not charged and the reverse charge applies instead. The invoice must state that the supply is subject to reverse charge, identify the mechanism, and show both VAT numbers — "VAT exempt" is not sufficient wording.
For B2C distance sales of goods and digital services to Hungarian consumers, the general OSS rule applies: charge Hungarian VAT at 27% through the One Stop Shop return rather than registering locally, provided you are established in the EU. Above the €10,000 pan-EU threshold you must register for OSS in one member state — choosing that member state is a genuine decision, because it determines the rate used for the whole €10,000 to €100,000 band across the EU. Hungary at 27% is a costly country to designate for that reason.
Non-EU businesses cannot use OSS and will need a Hungarian registration instead, normally with a fiscal representative. See the Reverse Charge Mechanism guide and the OSS checker for the decision tree.
8. Hungarian VAT number format
A Hungarian VAT identification number is the letters HU followed by eight digits:
Because the prefix and length are fixed, you can catch a mistyped number instantly — a Hungarian VAT ID in any other shape is wrong. To confirm that a number is genuinely registered rather than merely well-formed, run it through the VIES VAT validator, which queries the official EU database. Format-checking and registration-checking are different tests, and a customer will care about the second one.
Frequently asked questions
What is the VAT rate in Hungary in 2026?
Hungary's standard VAT rate is 27%, the highest in the European Union. Two reduced rates also apply: 18% on a range of goods and services including accommodation, catering and certain cultural activities, and 5% on basic foodstuffs, books, newspapers, public transport, healthcare and qualifying supplies for disabled persons.
Do I need to register for VAT in Hungary?
Registration is required once your annual taxable turnover in Hungary reaches HUF 12 million, approximately €30,000, which is one of the lowest thresholds in the EU. Non-EU established businesses generally also need a fiscal representative in Hungary. If you exceed the threshold you must notify the National Tax and Customs Authority (NAV) within 30 days.
When are Hungarian VAT returns due?
Hungarian VAT returns are filed monthly, by the 20th day of the month following the reporting period — so the January return is due by 20 February. Hungary also requires two supplementary returns each year, filed in July and January, each covering the preceding half-year.
What is a Hungarian VAT number?
A Hungarian VAT identification number starts with the letters HU followed by eight digits, for example HU12345678. You can confirm the number is valid and registered using the VIES VAT validator, which queries the official EU database — a separate test from simply checking the format.
Does Hungary require e-invoicing?
Yes. Hungary operates the Online Számla system, under which invoices between VAT-registered businesses must be issued through the government's online invoice reporting system. This is a domestic Hungarian requirement and is separate from the EU-wide ViDA e-invoicing timetable, which is a frequent source of confusion.
How does the 27% rate affect pricing in Hungary?
It changes what a customer pays and what you collect. On a net price of €100 the customer pays €127.00 in Hungary against €119.00 in Germany — an €8.00 difference on the same net price. On €1,000,000 of net turnover, output VAT is €270,000 rather than €190,000. The VAT is the customer's money either way, but it affects competitiveness, cash flow and the price a Hungarian customer will accept.
Disclaimer: General information only, not tax or legal advice. Hungarian VAT law and NAV administrative practice change. Verify your own position with NAV or a Hungarian tax adviser. Corrections are logged in the changelog.