Indirect Taxes
Value Added Tax
Customs agent's right to deduct VAT
The importer couls have saved on the financing of import VAT by using the favourable VAT status of the indirect customs representative through the assignment of the right of deduction (assigning the right of deduction to the customs agent), but from 2025 this is only be possible under strict conditions. On the one hand, the customs broker must be a reliable taxable person and on the other hand, the importer must either be a self-taxable person for import VAT or a monthly declarant and have a reliable taxable person status.
If the importer cannot meet the above conditions, the customs agent can still deduct the VAT, but only if the importer is screened and no tax risk is identified. This will be the institution of counterpart clearance.
Reduced VAT on properties
The reduced VAT rate of 5% on new properties remains for another 2 years, until 31 December 2026. If certain conditions are met, the reduced VAT rate still applys if the property is delivered by 31 December 2030.
VAT exemption
In line with EU rules, the VAT exemption scheme is modified from 2025. Under the new rules, a taxable person established in the EU is able to opt for a VAT exemption in a Member State where he is not established (e.g. Hungary), subject to certain conditions. The HUF 12 million threshold for taxable persons established in Hungary will remain unchanged.
Reporting domestic purchases in the VAT return
In the case of reporting data on the M form, which is part of the VAT return, the data have to be reported in HUF instead of the mandatory rounded amount of HUF thousands from 2025.
Environmental product fee
From 2025, the environmental product fee is no longer applied to products covered by both the environmental product fee scheme and the extended producer responsibility (EPR) scheme.
This means that the administrative obligation (including the obligation to declare and register) is abolished for packaging/packaging products, electrical and electronic equipment, tyres, batteries, promotional paper and office paper.
For these product groups, the obligations under the extended producer responsibility (EPR) scheme, such as reporting and payment of the extended producer responsibility fee, are continue to apply.
Excise Duty
From 2025, the excise duty rate on excise goods are increased. The excise duty rate on fuels (including petrol and gas oil) and various alcoholic products were published until 15 December 2024, and increased with the amount of the consumer price index.
From 2026 onwards, the tax rate on all excise goods will increase each year, by default, in line with the consumer price index.
The rate of excise duty refundable on commercial gas oil will depend on the EUR/HUF exchange rate.
It will be possible to recover excise duty on electricity used for rail transit operations .
Direct Taxes
Personal Income Tax
Family tax allowance changes
The most important change to the rules on personal income taxation concerns the family allowance. Its rate is increased to one and a half times the current rate from 1 July 2025 and to double the current rate from 1 January 2026.
Contribution of intellectual property by a private individual
The contribution of intellectual property by a private individual is exempt from personal income tax up to the value (essentially the market value) stated in the company's articles of association, if the contributor is the original creator of the intellectual property and is a qualifying private individual.
Global minimum tax
Under a new provision, a domestic group member or a designated local entity acting on its behalf must assess, declare and pay a recognised domestic additional tax advance for the tax year by the 20th day of the eleventh month following the eleventh day of the tax year to which the recognised domestic additional tax relates. In the first case, this deadline will be 20 November 2025.
Other taxes and changes
Data reconciliation procedure
From 2025, the tax authority introduced a new type of procedure, during which it is asked the taxpayer to clarify and correct any errors and/or discrepancies found in its data, for which it will have 15 days from the date of the request. If the taxpayer fails to do so, it may be subject to a penalty for failure to comply, which will increase in stages.
Extension of retail sales tax
From 2025, the scope of the retail tax is extended to non-resident or resident platform operators who provide an online marketplace to sellers engaged in retail activities (the so-called TEMU tax). The tax is based on the aggregate net sales revenue of the platform operator's retailers selling through the platform from the sale of goods through the platform. If the platform operator also carries out its own retail activities, the taxable amount is based on the previous amount plus the amount of the taxable amount determined for its own sales.
Valorisation
Valorisation, i.e. automatic inflation- linked tax increases, will be introduced in several taxes:
- From 2025, excise duties on fuels and alcohol products, motor vehicle tax and motor vehicle restitution tax;
- from 2026, excise duty on fuels and tobacco products, registration duty and company car tax.
In the course of the valorisation, the tax rate for the year preceding the current year is adjusted by the change in the consumer price index for the month of July of the year preceding the current year, as published by the Central Statistical Office, compared to the same period of the previous year.
Postponement of the introduction of the eReceipt concept
The legislator postpones by six months the entry into force of the provisions previously promulgated in connection with the introduction of the eReceipt concept, which were originally due to enter into force on 1 January 2025.