- As of January 1, 2025, taxable persons established in the EU will be able to opt for a cross-border VAT exemption in a Member State where they are not established, under certain conditions, as a result of amendments to the VAT Act.
- Current rules allow taxable persons to act as exempt only in the Member State where they are established; those from third countries will not be eligible for personal tax exemptions in Hungary or other Member States starting in 2025.
- To benefit from the cross-border exemption, taxpayers must register and submit a prior declaration in their Member State of establishment, and they can only apply for the exemption in Hungary from 2025 if they declare this intention.
- Transitional provisions allow foreign taxpayers who were exempt in Hungary in 2024 to continue their exemption without interruption in 2025, provided they meet specific conditions and declare their intention using the SME-NY declaration by December 31, 2024.
- Taxpayers must ensure their EU turnover does not exceed €100,000 and domestic turnover does not exceed HUF 12,000,000 in the relevant years to qualify for the cross-border exemption, and must submit additional data by January 15, 2025, to maintain their status.
Source gov.hu
