Summary
- Hungary will reduce the VAT rate to 0% from 1 September 2026 for medicines classified as available exclusively on medical prescription and for qualifying magistral preparations intended for human medical use. The rate applies at both wholesale and retail level. [nav.gov.hu], [nav.gov.hu]
- An over-the-counter medicine does not qualify merely because a doctor issues a prescription for reimbursement or pricing purposes. The decisive factor for manufactured medicines is their regulatory classification as prescription-only. [nav.gov.hu], [nav.gov.hu]
- Human magistral preparations qualify independently of the general prescription-status distinction, but cosmetic and veterinary magistral preparations remain subject to Hungary’s 27% VAT rate. [nav.gov.hu]
Extended article
Hungary is introducing a zero VAT rate for defined prescription medicines and human magistral preparations from 1 September 2026.
NAV and Hungary’s Ministry of Finance have issued joint guidance explaining the scope of the measure. The new 0% rate applies to medicines that may be dispensed exclusively on medical prescription and to qualifying magistral preparations produced for human medical purposes. [nav.gov.hu], [nav.gov.hu]
For manufactured medicines, eligibility is determined by the product’s official regulatory classification. The marketing authorisation records whether a medicine is prescription-only or may be supplied without a prescription. Information concerning medicinal products is held in the database of Hungary’s National Centre for Public Health and Pharmacy. [nav.gov.hu]
The treatment does not depend simply on whether a customer presents a prescription. NAV expressly explains that an over-the-counter medicine does not become zero-rated where a doctor prescribes it so that the patient can receive reimbursement or another pricing advantage. [nav.gov.hu], [nav.gov.hu]
Separate treatment applies to magistral preparations. These are preparations made by a pharmacist in a pharmacy under the applicable pharmacopoeia, standard formula collection or medical prescription for the treatment of patients served by the pharmacy. Qualifying human magistral preparations fall within the 0% rate. [nav.gov.hu]
Magistral products intended for cosmetic or veterinary purposes remain subject to the 27% VAT rate. Businesses must therefore ensure that product master data distinguish the intended use and regulatory category rather than applying the zero rate to all pharmacy-produced preparations. [nav.gov.hu]
NAV confirms that the 0% rate applies to both wholesale and retail sales. Pharmaceutical manufacturers, wholesalers, pharmacies and related distributors must consequently implement the change throughout the supply chain. [nav.gov.hu]
NAV has also issued cash-register guidance. Where a conventional online cash register is used, sales of qualifying medicines are recorded in a turnover collector linked to the“E” VAT collector, because those registers do not have a separate collector for the 0% rate. Where an e-cash register is used, the transaction is recorded in the“N” category for zero-rated goods and services. [nav.gov.hu]
Implementation should cover product tax codes, invoice determination, pricing, credit notes, returns, point-of-sale settings and VAT reporting. The critical control is to connect tax treatment to authoritative medicinal-product classification rather than to the presence of a prescription in an individual sale.
External links
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