NAV: selling self-produced fruit may be tax-free up to an annual income of six hundred thousand forints

By: STA Date: 2025. 07. 09. 11:00

The sale of self-produced vegetables and fruit may be tax-free up to an annual income of six hundred thousand forints, but if someone sells their produce on a commercial basis, it is worth doing so as a primary producer or as a sole proprietor – the National Tax and Customs Administration (NAV) drew attention in its announcement on Wednesday.

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If a private individual only sells surplus vegetables or fruit grown in their own garden, and this income does not exceed 600 thousand forints in total from the beginning of the tax year, then no income needs to be determined from the income from the sale. However, if the income from the sale exceeds 600 thousand forints, then the income needs to be determined based on the total income earned in the tax year. If the tax on this income does not exceed 30 thousand forints in the tax year, then it does not need to be paid – the NAV highlighted. However, if someone regularly sells various crops on a commercial basis, the sale is already considered an economic activity and results in VAT liability. This means that the seller must apply for a tax number, provide a receipt or invoice, and – if they have not chosen individual tax exemption – they must also submit a VAT return. If someone’s income from their primary producer activity does not reach 1,744,800 forints, they do not have to calculate income and do not have to submit a personal income tax return. If the income of an agricultural primary producer who has chosen flat-rate taxation does not reach 17,448,000 forints, then their flat-rate income is also exempt from personal income tax – the Tax and Customs Administration wrote in its statement.

Anyone who sells their own vegetables and fruits as a business should do so as a primary producer or as a sole proprietor

In this case, they must provide a receipt or invoice and prepare tax returns, because if they fail to do so, they can expect serious sanctions. The fine for failure to do so can be up to one million forints. In the event of failure to provide an invoice or receipt, the Tax and Customs Administration may impose a fine of up to two million forints. More serious defaulters, those who conceal significant amounts of income, can expect further investigation, in which auditors will estimate the amount of the concealed income and the tax to be paid – warns the Tax and Customs Administration.

MTI