Hungary Introduces Important Tax and Customs Changes in 2026: What Businesses Need to Know
Important Tax and Customs Changes in 2026
Tax refunds, simplified VAT reporting, retail tax relief and more automated customs procedures
Several important tax and customs changes entered into force in Hungary on 31 July 2026. The new rules bring a number of favourable developments for businesses, including the retroactive abolition of the Hungarian carbon dioxide quota tax, the possibility of claiming previously paid tax back with interest, simplified rules in certain retail tax situations and further digitalisation of customs procedures.
For companies operating in Hungary — particularly foreign-owned businesses and international groups — these changes may have a direct impact on tax compliance, cash flow and administrative processes.
One of the most important points is a strict 90-day deadline for companies seeking a refund of previously paid carbon dioxide quota tax.
Here is what businesses should know.
1. Hungary abolishes the carbon dioxide quota tax
One of the most significant changes is the retroactive abolition of the Hungarian carbon dioxide quota tax.
The tax has now been removed from the Hungarian tax system. Importantly, companies that previously paid the tax may be entitled to have the amounts refunded.
The refund is not limited to the tax itself. According to the Hungarian Tax and Customs Administration (NAV), the refunded amount also includes interest calculated at the Hungarian central bank base rate increased by two percentage points.
This can therefore represent a meaningful financial opportunity for companies that were previously subject to the tax.
A critical deadline: 90 days
Businesses affected by the former carbon dioxide quota tax should pay particular attention to the deadline.
A refund application must be submitted within 90 days from 31 July 2026.
This means that the deadline falls on 29 October 2026.
The deadline is forfeiting. In other words, it cannot be extended by submitting a request for restoration of rights.
For companies that may be eligible, this is therefore not simply an accounting matter. It is a time-sensitive tax claim that should be reviewed as soon as possible.
2. VAT reporting: no additional mandatory breakdown for received invoices
The new rules also clarify an important aspect of Hungarian VAT reporting.
The reporting requirements concerning received invoices have not changed. From 1 July 2026, businesses may continue to comply with their reporting obligations according to the rules that were in force on 30 June 2026.
This means that businesses are not required to separately report the deductible VAT base and VAT amount by each applicable VAT rate for received invoices.
However, the Hungarian VAT return can also be submitted with more detailed information.
Under the expanded reporting option, businesses can separately indicate the VAT amounts actually deducted in relation to the 5%, 18% and 27% VAT rates, as well as amounts affected by proportional deduction.
Although this more detailed reporting is not mandatory, it may be beneficial from a compliance perspective.
Providing more detailed information about invoices included in the deduction can help businesses avoid VAT data reconciliation procedures with NAV.
For companies with significant transaction volumes, this can be an important practical consideration when deciding how their VAT reporting processes should be structured.
3. Relief from the retail tax aggregation rules
Another favourable change concerns Hungary's retail tax.
Under the previous rules, certain companies could become subject to revenue aggregation requirements when affiliated-company relationships arose following corporate restructuring.
The new rules remove the obligation to aggregate revenues in certain situations where companies became related parties as a result of:
a demerger,
a spin-off, or
a transfer of assets.
Importantly, the new rule applies already to the 2026 tax year.
This may be particularly relevant for corporate groups carrying out reorganisations or restructuring their Hungarian operations.
Companies that have undergone a demerger, spin-off or asset transfer should therefore review whether the new rules affect their retail tax position for 2026.
4. Customs procedures are becoming more automatedThe changes are not limited to taxation.
Hungary is also taking another step towards the digitalisation and automation of customs procedures.
For electronically submitted customs declarations, automated decision-making is now possible in certain circumstances.
The introduction of organisational signatures without direct intervention by a customs officer is intended to make customs procedures:
faster,
more secure, and
more efficient.
For businesses involved in international trade, importing goods into Hungary or exporting goods from Hungary, greater automation can potentially reduce administrative burdens and speed up customs processing.
This is particularly relevant for companies with high volumes of customs declarations, where even relatively small improvements in processing time can have a meaningful operational impact.
5. Further tax simplification is expected from 2027
The abolition of the carbon dioxide quota tax is also part of a broader development in the Hungarian tax system.
Further tax simplification is planned from 1 January 2027, when three additional types of tax or contribution are scheduled to disappear:
the immigration special tax,
the municipal tax payable to local governments, and
the animal control contribution.
For businesses, the significance of these changes goes beyond the individual taxes themselves.
A reduction in the number of applicable taxes can also mean fewer compliance obligations, fewer reporting requirements and a simpler overall tax administration environment.
What businesses should do now
The new rules contain several opportunities, but businesses should not treat them simply as legislative changes to be noted for future reference.
There are several practical steps companies should consider now.
1. Check whether your company previously paid the carbon dioxide quota tax
If your company was subject to the Hungarian carbon dioxide quota tax, determine whether it is eligible for a refund of the tax previously paid.
The potential refund should be reviewed together with the applicable interest.
2. Do not miss the 90-day deadline
The refund application must be submitted within 90 days from 31 July 2026.
The practical deadline is 29 October 2026.
Because this is a forfeiting deadline, companies should not wait until the final days to assess their position.
3. Review your VAT reporting processes
Although the rules concerning the reporting of received invoices have not become stricter, businesses should consider whether the more detailed VAT reporting option could reduce the risk of future data reconciliation procedures.
For companies with substantial invoice volumes, this may be worth discussing with their tax adviser or accountant.
4. Reassess retail tax exposure after corporate restructuring
Companies that have undergone a demerger, spin-off or asset transfer should review their 2026 retail tax calculations in light of the new rules.
This may be particularly important for groups where changes in ownership or corporate structure resulted in related-party status.
5. Review customs processes
Businesses engaged in international trade should also consider whether the new automated customs procedures can be incorporated into their existing customs and compliance processes.
Automation may offer opportunities to reduce administrative workload and improve the efficiency of customs clearance.
What these changes mean for international businesses in Hungary
For foreign-owned companies, the most important message is that Hungarian tax and customs legislation continues to evolve — and not every significant change creates an additional tax burden.
The July 2026 amendments contain several business-friendly measures, including a potentially valuable tax refund, greater flexibility in VAT reporting, relief from certain retail tax aggregation rules and increased automation of customs procedures.
At the same time, the changes demonstrate why companies operating in Hungary should not rely solely on historical tax procedures.
A tax position that was correct under the previous rules may need to be reassessed following legislative changes, particularly where corporate restructuring, VAT reporting or customs operations are involved.
The carbon dioxide quota tax refund is perhaps the clearest example: a company that does not actively review its historical tax position may simply miss a refund to which it could otherwise be entitled.
Hungarian Tax Advisory for Foreign-Owned Companies
Navigating Hungarian tax legislation can be challenging for companies that operate internationally, particularly where Hungarian rules interact with corporate restructuring, cross-border transactions, VAT, customs or the procedures of the Hungarian Tax and Customs Administration (NAV).
Major Gábor Law Firm provides legal and tax advisory services in English for both Hungarian and international clients, with a particular focus on Hungarian corporate taxation, international taxation, tax planning, NAV procedures and tax audits.
For businesses affected by the recent changes, professional advice can be particularly valuable when determining whether a company is entitled to a carbon dioxide quota tax refund, assessing the applicable deadline, reviewing VAT compliance or analysing the tax consequences of a corporate restructuring.
The most important point is simple: if your company may be entitled to a refund, the 29 October 2026 deadline should not be overlooked.
This article provides general information and does not constitute legal or tax advice. The application of the rules depends on the individual circumstances of each business. Companies should obtain specific professional advice before taking action.
