Hungary VAT (ÁFA) Guide for 2026: Rates, Registration & Filing
Hungary has the EU's highest standard VAT at 27%, with reduced 18% and 5% bands. Learn registration, real-time invoice reporting, and filing rules.
Last updated
Key Takeaways
Hungary applies a standard VAT (AFA) rate of 27% — the highest standard rate in the EU — to most goods and services, including SaaS and digital products, with an 18% reduced rate for certain foodstuffs and takeaway. A non-established business must register as soon as it makes taxable supplies, with no threshold; for EU-wide B2C distance sales, VAT is due once sales exceed the EU-wide EUR 10,000 threshold. Most financial and insurance services, healthcare, and education are exempt; exports and intra-EU B2B supplies are zero-rated.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Sales Tax Rates
Hungary applies a standard VAT (AFA) rate of 27% to most goods and services, including SaaS and digital products sold to consumers. Reduced and special rates apply to specific categories:
Rate | Applies to |
|---|---|
27% (standard) | most goods and services, SaaS, and digital services; the highest standard rate in the EU |
18% (reduced) | certain foodstuffs, takeaway food, admission to open-air cultural events |
5% (reduced) | medicines, books, newspapers, district heating, hotel accommodation, new residential property |
0% (zero) | intra-EU supplies and exports |
Electronically supplied services are taxed where the customer is located, so a foreign SaaS seller charges Hungarian VAT on B2C sales and reports it through the EU One Stop Shop (OSS).
Registration & nexus threshold
Hungary uses VAT registration rules rather than US-style economic nexus. A non-established business must register as soon as it makes taxable supplies in Hungary, with no threshold [2]. For cross-border B2C sales within the EU, VAT is due in the customer's country once total EU distance sales exceed the EU-wide EUR 10,000 threshold, reportable through the One Stop Shop [2]. Registration steps are in the How to Register section.
Filing frequency & deadlines
Hungarian VAT returns are filed monthly, quarterly, or annually depending on VAT liability. Monthly and quarterly returns and payment are due the 20th of the following month; annual returns by 25 February of the following year. Real-time invoice reporting to the tax authority applies.
Exemptions
Exempt supplies include most financial and insurance services, healthcare, education, and the letting of immovable property (with an option to tax). Exports and intra-EU B2B supplies are zero-rated.
Penalties
Late filing can draw a default penalty of up to HUF 500,000, with late payment charged interest at the National Bank base rate plus 5 percentage points, accrued daily. A tax shortfall carries a penalty of up to 50% of the unpaid tax, rising to 200% for fraud or concealment.
Sources
[1] European Commission — VAT rates (Hungary 27% standard, 5% and 18% reduced)
[2] European Commission — One Stop Shop (EU-wide EUR 10,000 threshold)
[3] Hungary National Tax and Customs Administration (NAV) — VAT (ÁFA)
Verified July 2026 against European Commission and Hungarian National Tax and Customs Administration guidance.
Frequently asked questions
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