- Increased VAT Exemption Threshold: The threshold for opting for the VAT exemption in Hungary will rise from HUF 12 million to HUF 18 million, effective retroactively from January 1, 2025, allowing more taxpayers to qualify for this exemption.
- Eligibility and Conditions: Taxpayers can choose the VAT exemption if their total domestic sales do not exceed HUF 18 million in 2024 or 2025. Those who exceed the HUF 12 million threshold in prior years can still opt for the exemption if they remain under the new threshold.
- Amendments and Compliance: Taxpayers must submit a declaration to the tax authority by February 28, 2025, to opt for the exemption. They are also required to amend invoices if necessary and must be aware that opting for this exemption retroactively eliminates their right to deduct input tax during the relevant period.
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