How vat / sales tax works in Hungary
Hungarian VAT (áfa) defaults to 27% on goods and services, with 18% on restaurants, hotels, and dairy and bakery products and 5% on books, medicines, and defined staples.
Traders file monthly, quarterly, or annually by liability, report invoices in real time through online számla, and run e-receipts for retail flows.
Exports zero-rate, financial, health, and education supplies are largely exempt, and EU distance sellers route through OSS past the union threshold.
Tax rates at a glance
- Standard VAT
- 27%
- Reduced VAT
- 18% / 5%
- Restaurants and stays
- 18%
- Books and medicines
- 5%
- Exports
- 0%
- Invoice reporting
- Real-time
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersHospitality operatorsManufacturersExpatsCross-border traders
Watch out for
- At 27%, rate errors cost more than anywhere in the EU, which makes product mapping the highest-value compliance work in Hungarian operations.
- Real-time invoice reporting means the tax office sees transactions as issued, so corrections need formal credit-note discipline rather than quiet edits.
- Hospitality splits 18% food and stays against 27% alcohol and extras, with takeaway context deciding borderline supplies.
- Retail sector taxes beyond VAT add parallel levies that headline-rate comparisons miss completely.
Frequently asked questions
What is the VAT rate in Hungary?
Hungary applies 27% standard VAT in 2026, the EU's highest, with 18% for restaurants, hotels, and dairy and 5% for books, medicines, and staples.
What is online számla reporting?
Real-time invoice data transmission to NAV as invoices issue, covering domestic B2B and expanding retail flows. Missing reports draw penalties per invoice.
How often are Hungarian VAT returns filed?
Monthly, quarterly, or annually by liability size, with real-time invoice feeds running between filings regardless of period.