- Hungary increased the VAT exemption threshold for SMEs to HUF 18 million from HUF 12 million.
- The increase is retroactive to January 1, 2025.
- Taxpayers have until the end of February to opt in for the exemption.
- The change was made in response to an amendment to Directive 2020/285/EU.
- The Hungarian Government amended the VAT Act on January 25, 2025.
- Taxpayers who exceeded the previous HUF 12 million limit but remained under HUF 18 million over the past two years are now eligible for the exemption.
- The Hungarian Tax Authority issued a guide on how to correct invoices and VAT returns.
- VAT paid on receipts remains with the taxpayer.
Source: ceelegalmatters.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
