The Chamber proposes a further multi-stage increase in the threshold for VAT exemption

The discussion focused on specific measures that will help businesses in the short term and contribute to the modernization of the Hungarian economy and the increase in the rate of higher value-added production in the medium term. During the meeting, the parties mutually accepted the principles and the Chamber’s management undertook to submit its detailed proposals to the government as soon as possible and to present them to the public.

The discussion focused on reducing the tax burden on the smallest companies and sole proprietors. In this context, the Chamber proposes a further, multi-stage increase in the value threshold of the VAT subject tax exemption, continuing the increase it proposed in January. The current value threshold for VAT subject tax exemption is currently HUF 18 million, with the goal of reaching the value threshold of HUF 24 million within three years.

According to the MKIK proposal, it is important to know the tax rates for several years in advance for the sake of plannability and predictability. This is supported by the gradual introduction of increases. Based on the Chamber’s proposal, the limit would increase to HUF 20 million in 2026, HUF 22 million in 2027, and HUF 24 million in 2028, with advance notice.

With a value threshold of HUF 20 million, the measure could affect approximately 8,300 enterprises without net reclaimers, while with reclaimers this number would be 10,600; At a value threshold of 22 million forints, the number of affected enterprises may increase from 15,800 to 20,100; at a value threshold of 24 million forints, the number of beneficiary enterprises may increase from 22,800 to 28,000.