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VAT exemption for small businesses in 2026: threshold raised to HUF 20 million

From 2026 the annual revenue threshold for opting into and keeping the VAT exemption for small businesses is HUF 20 million, up from HUF 18 million.

This gives small companies and sole traders more room, but close to the limit, continuous revenue monitoring is essential: exceeding it moves the business into the VAT system, with invoicing, filing and pricing consequences.

According to the tax authority, the threshold rises further to HUF 22 million in 2027 and HUF 24 million in 2028. If you operate near the threshold, it is worth considering early on when voluntary VAT registration could be advantageous – we are happy to help.

This article is based on the legislation in force on the day of publication and provides general information. Please consult us before making a specific decision.

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