Hungary Cuts VAT on Prescription Medicines to 0% from September 2026

• Hungary will cut VAT on prescription medicines from 5% to 0% starting 1 September 2026.
• The change was officially published on 13 August 2026 and is meant to reduce household medicine costs and improve access.
• The zero rate keeps these supplies within the VAT system, preserving input VAT deduction rights.
• Prices for socially insured prescription medicines remain regulated by NEAK, preventing suppliers from absorbing the tax cut through higher prices.
• The 0% rate applies only to prescription human medicines; over-the-counter medicines stay at 5%.

Source: taxathand.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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