VAT: The planned tightening of Annex M reporting requirements is expected to be withdrawn

The Hungarian Government is expected to amend the provisions that would have changed the invoice-level reporting requirements (the so-called Annex M) within the VAT return as of 1 July 2026.

Under the legislation currently in force, Act LXXXIII of 2025 would tighten the reporting obligations relating to received invoices from 1 July 2026 by expanding the mandatory data content to be reported in Annex M. These requirements would first apply to VAT returns covering the reporting period including 1 July 2026.

According to information published by the Ministry of Finance, however, the Government intends to propose an amendment to these rules in light of the ongoing preparation of the comprehensive VAT return reform aimed at supporting business digitalisation. The objective is to keep the current Annex M reporting framework unchanged and ensure that the already adopted stricter reporting requirements will not need to be applied in practice for any reporting period.

It is important to note, however, that due to the legislative process, the tightening provisions are still expected to formally enter into force on 1 July 2026. Nevertheless, Parliament is expected to adopt an amendment either before that date or shortly thereafter to ensure that the new requirements will never become applicable in practice.

If the proposed amendment is adopted, taxpayers will continue to fulfil their Annex M reporting obligations under the currently applicable rules.