Hungary eVAT system transition 2027: Digital transformation of VAT filing
Following several successful digitalisation initiatives – such as the introduction of online cash registers and an online invoicing system – the Hungarian National Tax and Customs Administration (NAV) is now introducing eVAT, a digital VAT return system. Ecovis consultants explain the system and why companies should act now, ahead of the 2027 launch.
One of the key features of the Hungarian tax system is that it relies heavily on consumption taxes. The 27% standard VAT rate is the highest in the European Union, which is why safeguarding VAT revenue and ensuring taxpayers’ compliance with their tax obligations are of paramount importance. In contrast, direct taxes – particularly the 9% corporate income tax and the 15% personal income tax – remain at relatively low levels by international standards.
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eVAT: The new digital VAT reporting system
The eVAT system introduces a new digital VAT reporting model, replacing the current filing process with two electronic submission options: the eVAT web interface and the M2M (machine-to-machine) connection. According to NAV’s current timeline, from 1 January 2027 onwards, VAT returns will have to be submitted exclusively through these digital channels.
We support you in preparing for eVAT, covering all associated tax, process-related, and system-related aspects.
László Kelemen, Partner, Ecovis Tax and Accounting Hungary Kft., Budapest, Hungary
Web interface or M2M connection?
The eVAT web interface is primarily designed for small businesses with simpler filing requirements, while the M2M connection provides an efficient automated data exchange solution for companies with higher transaction volumes or more advanced digital processes. eVAT represents not only a new filing channel but also a significant shift towards data-driven VAT compliance.
Which processes and structures companies need to adapt
The transition requires not only IT development but also adjustments to companies’ tax and financial processes. Reviewing data sources, tax codes, and accounting workflows will be essential to ensure accurate and properly structured data submission to NAV. The eVAT system also aligns with the European Union’s VAT in the Digital Age (ViDA) initiative, supporting the further digitalisation of VAT compliance and tax audit processes.
