Hungary raises the VAT small-business exemption threshold to HUF 20 million from 2026

What changed in detail

Act LXXXIV of 2025, promulgated in Magyar Közlöny on 21 November 2025, raised the turnover threshold for Hungary’s small-business VAT exemption (alanyi adómentesség), set in section 188(2) of the VAT Act (Act CXXVII of 2007), from HUF 18 million to HUF 20 million from 1 January 2026. The same Act sets two further steps: HUF 22 million from 1 January 2027 and HUF 24 million from 1 January 2028, through amendments in its sections 15 and 16 that take effect in those years.

NAV’s announcement explains who can choose the exemption for 2026: a business whose 2025 turnover did not exceed HUF 20 million and whose 2026 turnover is not expected to exceed it. That includes businesses that exceeded the earlier HUF 12 million limit in 2024 or the HUF 18 million limit in 2025, provided they stayed under HUF 20 million in 2025. A business starting activity during 2026 applies the limit pro rata. Businesses newly choosing the exemption had to declare it by 31 December 2025, most simply through NAV’s online form-filling application (ONYA).

The consolidated VAT Act on njt.jog.gov.hu shows section 188(2) as “20 000 000 forintnak megfelelő pénzösszeg”, with a footnote recording that its text was set by section 14 of Act LXXXIV of 2025.

What it means

HUF 20 million is the threshold in force for 2026, and it replaced the HUF 18 million figure introduced for 2025 (the 2025 increase). It is itself about to be overtaken: the next step, to HUF 22 million from 1 January 2027, is recorded separately (HUF 22 million from 2027). A business near the line in late 2026 should test its 2026 turnover against HUF 20 million and its expected 2027 turnover against HUF 22 million, and file any new election for 2027 by the year-end deadline.