Hungary cuts VAT on firewood from 27% to 5% from 15 September 2026
This page records one dated change. For the rules in Hungary as they stand today, see the Hungary guide →
- Jurisdiction
- Hungary
- Tax
- VAT
- Change type
- Rate change
- Status
- Enacted
- Impact
- Action required
- Announced
- 1 September 2026
- Effective
- 15 September 2026
- Instrument
- HU-LAW-XLVIII-2026
- Authority
- Magyar Közlöny (Official Gazette of Hungary)
- Systems
- ERP, Invoicing, Tax engine, POS, E-commerce
- Verified
- Fetched from official source · high confidence
Any business selling firewood or wood-based heating fuel into Hungary, whether established there or registered as a non-resident supplier — retailers, forestry and fuel merchants, DIY and garden chains, and online sellers shipping to Hungarian consumers. Scope is drawn by tariff heading rather than product description: CN 4401 11 and 4401 12 for firewood in logs, billets, twigs or faggots, and CN 4401 31 and 4401 39 for sawdust, wood waste, pellets and briquettes used for heating. Wood sold for a purpose other than heating is not covered.
Reconfigure Hungarian VAT on firewood and wood heating products from 27% to 5% for supplies with a tax point on or after 15 September 2026. Check product classifications for logs, blocks, bundles, sawdust, pellets and briquettes.
ERPInvoicingTax enginePOSE-commerce
Hungary reduced the VAT rate on firewood and wood heating products from 27% to 5% by inserting them into Annex 3 of Act CXXVII of 2007 on Value Added Tax. Act XLVIII of 2026 (2026. évi XLVIII. törvény) was adopted by Parliament on 28 August 2026 and published in Magyar Közlöny 2026/122 on 1 September 2026. The reduced rate applies from 15 September 2026 and covers logs, blocks, bundles, sawdust, wood pellets and briquettes.
What changed in detail
Act XLVIII of 2026 (2026. évi XLVIII. törvény) amends Act CXXVII of 2007 on Value Added Tax. Its single operative section adds two rows to the table in Part I of Annex 3 — the schedule carrying Hungary’s 5% reduced rate:
- Row 61 — firewood in logs, billets, twigs, faggots or similar forms (CN 4401 11, 4401 12).
- Row 62 — sawdust and wood waste and scrap for heating purposes, agglomerated into pellets, briquettes or similar forms (CN 4401 31, 4401 39).
Parliament adopted the Act at its sitting on 28 August 2026 and it was published in Magyar Közlöny 2026/122 on 1 September 2026. The Act’s preamble states its purpose plainly: that heating and a properly warm home are basic needs, and that heating with firewood is often the only option available to poorer households.
Before this change both categories sat at the 27% standard rate.
What it means
Last week this measure existed only as a bill with a target date and no gazette — the state in which announced tax cuts most often slip quietly. It did not slip.
The practical trap is the classification. The relief is drawn by CN code, not by how a seller labels the goods, so a merchant selling both heating pellets (row 62) and, say, wood chips for landscaping needs to split the catalogue rather than apply one rate across a “wood” product family. Sellers have roughly a week from publication of this record to reconfigure.
This is the second Hungarian VAT rate cut in four weeks, after prescription medicines moved to a zero rate on 1 September.
Proof
Ez a törvény 2026. szeptember 15-én lép hatályba.This Act enters into force on 15 September 2026.
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