Reverse charge; base calculations and import VAT
The Hungarian 2025 tax package introduces key changes to VAT regulations, approved by parliament, effective over the next several years. See our Hungary VAT country guide section.
- VAT Base Reduction for Refunds:Following the Novo Nordisk Case (C-248/23), VAT base reductions are applicable to statutory payment-based refunds. This applies to refunds completed from 29 November 2024 onwards and retroactively for those completed between 1 January 2024 and the new rule’s effective date if no other method has been used.
- Receipts and VAT Base Reductions:Purchases documented with receipts can qualify for VAT base reductions if receipt data is updated. This applies to transactions completed from 1 July 2025 onwards.
- Import VAT Deduction Rights:Stricter conditions apply to assigning VAT deduction rights to indirect customs representatives. Importers must file monthly VAT returns and qualify as reliable taxpayers.
- Natural Gas Sales:A reverse charge mechanism will apply to taxable traders selling natural gas from 1 January 2025.
- Reduced VAT for New Residential Properties:The 5% reduced VAT rate for new residential properties is extended through 31 December 2026. Under specific conditions, this rate applies to transactions fulfilled between 1 January 2027 and 31 December 2030.
These changes aim to enhance compliance and streamline VAT rules for various sectors.
