The Hungarian Parliament has recently accepted the law governing taxes in Hungary in 2025. In our second article on changes being introduced next year, you can discover the 2025 tax changes most relevant to your Hungarian business operation.
If you are interested in HR and payroll related tax changes, click here.
New Data Reconciliation Procedure
The Hungarian Tax Authority (NAV) has a new tool in its inventory for monitoring data provided to them. If a discrepancy is discovered in the data submitted to the Authority, instead of ordering a compliance audit, they can now opt for a simpler procedure for data reconciliation. This will make correcting obvious mistakes more straightforward.
E-bill system delayed
Sellers can create and send invoices in an electronic format for years. This also makes reporting to the Tax Authority automatic. There has been a demand for a similar system for bills (which are like simplified invoices), but now the introduction of the electronic bill system has been postponed from 1 January to 1 July 2025.
In line with this, in cases where there was only a bill and not an invoice, tax base reduction will be available from 1 July, but only if the bill is corrected to reflect the price reduction.
Global Minimum Tax
The Global Minimum Tax applies only to enterprise groups with a yearly revenue above EUR 750 million. If your Hungarian company is a member of such a group, you are required to report your status as such, alongside additional data about the group your company belongs to. You can do this online through ONYA (look for the GLOBE form).
Additionally, you will be required to calculate a top-up advance tax and then pay it by 20 November 2025. (The deadline every year will be 20 November, or the next working day.)
VAT free operation in the EU
Harmonizing EU regulations, EU based businesses that do not apply VAT may operate VAT free in other EU member states as well, not only in their country of seat, provided their yearly revenue stays below the limit defined by their country of seat, or below EUR 100,000 (whichever is lower). This applies to selling both goods and services. The change might be most relevant the freelancers and other small businesses that are exempt from VAT.
AirBnB tax in Budapest
The flat-rate tax for vacation rentals (in AirBnB) increases in Budapest to HUF 150,000 / year / room. In other towns the tax remains HUF 38,400 / year / room. In addition, the definition of “room” has been clarified to prevent misunderstandings.
Tax increases following the inflation
Starting from next year, several taxes become dependent on inflation. This means that these taxes will be automatically increased every year in line with the inflation of the previous year. The taxes covered include car taxes and excise duties, and the first increase will be around 20%.
At first, the taxes will be increased gradually:
- Increased in 2025: the excise duty on motor fuels and alcoholic beverages, the car tax, and the onerous property acquisition duty of vehicles.
- Increased in 2026: the excise duty on other fuels and tobacco products, the car registration tax, and the company car tax.
At the same time, from 1 January 2025, the car registration tax must be paid after hybrid and plug-in hybrid cars as well (so far these vehicles have been exempt).
Intellectual property
If a private individual contributes intellectual property to a company, the personal income tax is waived up to the market value of the property if the contributor is the original creator.
Corporate tax and sports
The corporate tax base may already be reduced by donations made to spectator team sports. Now the scope of this rule is widened to include more organizations, and donations may also support the maintenance of properties where sports are done.
Choosing KIVA after an acquisition
KIVA, or the Small Business Tax is an alternative to the corporate tax and offers better options for businesses that meet specific conditions. If you merge or separate a KIVA company and the assets are not revalued during the procedure, the new company or companies may immediately choose to re-enter KIVA from 2025, and do not have to wait 24 months before they can do that.
“TEMU Tax”
The so called “TEMU Tax” concerns online shops that provide a platform for retail sellers. From 2025, they will be required to pay a retail tax in a bracket based on the Hungarian revenue of the entire platform. This may add an additional 3-4% to the taxes these platform operators must pay in Hungary.
Customs representative
Currently, if you use a customs representative to manage your imports, you can save a lot on VAT when importing goods. From 2025, the rules governing this become stricter, and require additional documentation. The customs representative must also be a reliable taxpayer, which is a status available only after at least 3 years of operation, which will be a disadvantage to new businesses.
Helpers Finance at your service
Helpers Finance provides accounting and bookkeeping services to small and medium-sized companies operating in Hungary, with a focus on working with foreign owners. Our team offers precise and up-to-date reports that will support your decision making, while you can always rest assured that you will get notified of any relevant regulation changes, and our workflow will be updated automatically.
Do you want to work with a professional, English-speaking team that will help you realize your goals in Hungary and always stay on top of tax changes? Then do not hesitate to contact us!
Was this article useful? Find us on Facebook to never miss an update, and watch this space for our next article on 2025 changes in Hungary.
