Small-business VAT exemption (alanyi adómentesség)
The small-business VAT exemption (alanyi adómentesség) lets a business whose revenue stays below a legal limit charge no VAT on its sales.
Updated:
What does Small-business VAT exemption mean?
According to NAV, the revenue limit for choosing the exemption is HUF 20 million from 2026 (18 million before), HUF 22 million from 2027 and HUF 24 million from 2028.
An exempt business charges no VAT and cannot deduct the VAT on its purchases either. NAV's site describes the conditions and how to elect it; it is worth working the numbers with an accountant first.
Why does it matter to a small business?
For a small business the exemption can mean simpler administration and lower prices for private buyers, since it charges no VAT. In return the VAT on purchases cannot be deducted either, which can be a disadvantage with many purchases or with mostly business buyers. It is worth working the numbers and making the decision with your accountant, on the basis of NAV's guidance.
What does it look like in practice?
Details
Suppose a beautician in Tatabánya works alone, mostly with private clients, and her revenue stays below the limit. She and her accountant work the numbers and she chooses the exemption. On her invoices the lines carry no VAT and show the reason for the exemption. If her revenue approaches the limit, they sit down, work the numbers again and read NAV's current guidance.
How does HelloCRM handle it?
Details
In HelloCRM a 0 percent invoice line can carry its exemption reason, so the invoice goes out with the right marking through the invoicing provider.
Module: Invoicing (paid module, price coming soon).
A CRM for small businesses in Hungary
HelloCRM is an online CRM made in Hungary for small and mid-sized businesses there, in Hungarian and English: the core CRM is free for good, with no time limit and no card, and it can be tried without signing up in a demo company full of example data.
Questions
What is Small-business VAT exemption, in one sentence?
The small-business VAT exemption (alanyi adómentesség) lets a business whose revenue stays below a legal limit charge no VAT on its sales.
Sources
This is general information, not legal or tax advice. The rules come from: NAV: Emelkedik az alanyi adómentesség értékhatára (checked ); 2007. évi CXXVII. törvény az általános forgalmi adóról (Áfa tv.), Nemzeti Jogszabálytár (checked )