Hungary Introduces Mandatory Detailed VAT Return Reporting and Enhanced M-Sheet Requirements from 2026

• The Hungarian Parliament adopted changes to VAT return reporting, including updates to the VAT Act.
• From 30 July 2025, new voluntary reporting columns (M-sheets) were introduced for VAT rates and deduction proportions.
• From 1 July 2026, reporting of seller VAT ID, VAT amounts by rate, and deduction proportions on M-sheets becomes mandatory.
• These changes will be reflected in the VAT return XML schema for consistent, machine-readable reporting.
• The phased approach aims to increase transparency, streamline processing, and reduce compliance checks.

Source: fintua.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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