KATA is still available only to full-time sole traders who – with the exception of taxi services – may not earn revenue from a payer (such as a company, a sole trader or a foreign company), so in practice they can invoice private individuals only.
The VAT-exemption threshold rose to HUF 20 million this year, so even with the full HUF 18 million KATA cap used there is a HUF 2 million buffer before VAT registration becomes necessary – yet for many sole traders the flat-rate (átalányadó) regime may now be the better choice. We are happy to work out which option pays off in your case.
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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