Hungary’s tax authority has published guidance on increasing the VAT exemption threshold for small businesses from HUF 12 million to HUF 18 million.
The increase was established by Government Decree No. 5/2025 and published in the Official Gazette on 15 January 2025 and went into effect the following day.
The increased threshold will take effect retroactively, starting from 1 January 2025.
Under the Decree, taxpayers can opt for VAT exemption in 2025 if their annual turnover from domestic goods and services was under HUF 18 million in 2024 and is expected to stay below HUF 18 million in 2025.
Taxpayers have until February 28, 2025, to choose the VAT exemption for 2025.
