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.

Exemption