Hungary – Increase in VAT registration thresholds

In a move designed to reduce the administrative and tax burdens on small businesses, the Hungarian government has announced a phased increase of its annual VAT registration threshold. The threshold, which was already raised from HUF 12 million to HUF 18 million in July 2025, will continue to climb, ultimately reaching HUF 24 million by January 2028. The new measure is part of a larger tax relief package aimed at supporting the country’s small and medium-sized enterprises (SMEs).

The increase will take effect in three stages:

– January 2026: The threshold will rise to HUF 20 million.

– January 2027: It will be further increased to HUF 22 million.

– January 2028: The threshold will reach its final planned amount of HUF 24 million.

By raising the threshold, more businesses will be able to operate without being subject to VAT, significantly reducing their administrative and accounting costs. This directly benefits small businesses with revenues below the new limits.