Raising VAT Exemption Threshold: Simplifying Compliance for Small Taxpayers

• Small taxpayer exemption threshold
  • The VAT exemption limit for small taxpayers will gradually increase:
  • 20 million HUF in 2026
  • 22 million HUF in 2027
  • 24 million HUF in 2028
  • This reduces compliance burdens for micro‑enterprises and sole traders.
• Simplification for SMEs
  • The higher thresholds align with broader SME tax relief (KATA/KIVA), easing VAT obligations for small businesses.
• Administrative burden reduction
  • The measure is framed as part of Hungary’s effort to maintain a competitive tax system by cutting VAT paperwork for small taxpayers.

Source Parlement.hu

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