Global Daily Tax News, Hungary Hikes VAT Registration Threshold, (Jul 3, 2025)

Hungary raised the threshold for access to the small business value-added tax exemption scheme to HUF18m (USD45,880), up from HUF12m.

Provisions in the EU VAT Directive enable member states to provide that supplies may be made free from value-added tax by a small business providing its annual turnover does not exceed a given threshold, with these thresholds varying between member states.

As well as not being required to charge value-added tax on their supplies, small businesses may be exempted from certain or all VAT obligations relating to identification, invoicing, accounting, or returns. A major drawback of the exemption, however, is that, almost always, businesses may not claim back any value-added tax on their inputs.

Registration is required if the taxpayer's turnover exceeded this HUF18m threshold in the previous year or if the business expects that its turnover will exceed this threshold in the current year.