|Update:||Compliance Alert - EU granted derogation for raising the VAT registration threshold|
The EU has approved a new VAT registration threshold for Hungary. It has been raised from the Hungarian Forint equivalent of EUR 48 000 per year to EUR 71 500, making it one of the highest in the EU.
Although the derogation is effective immediately, it is expected that the threshold increase will be partially diluted by price increases.
The granted derogation is valid until 31 December 2024. After that, new EU VAT registration threshold rules might apply.
Foreign businesses providing taxable supplies in Hungary have no VAT registration threshold, so this threshold only applies to resident companies.