Hungary: Government plans to maintain current VAT return invoice-level reporting requirements
The government plans to prevent stricter M-sheet reporting rules from applying in practice, allowing businesses to continue using current VAT return reporting methods.
The Ministry of Finance has published information stating that the government intends to maintain the current invoice-level reporting requirements that form part of the Hungarian VAT return, namely the submission of the domestic purchase listing (M-sheet), after July 1, 2026.
Under Act LXXXIII of 2025, more stringent M-sheet reporting rules for incoming invoices were expected to become effective on July 1, 2026, requiring taxpayers to report both the charged VAT and the deductible VAT claimed.
Although the provisions will become effective, the government intends to submit a bill to Parliament so that the stricter rules do not apply in practice. As a result, businesses are expected to be able to continue fulfilling their M-sheet reporting obligations in accordance with the current rules after July 1, 2026. While application of the stricter reporting requirements is expected to be postponed or ultimately avoided, businesses need to continue to monitor the legislative process, in particular the government's proposed amendment and its adoption by Parliament.
Read a July 2026 report prepared by the KPMG member firm in Hungary