Business News from PETERKA AND PARTNERS

VIDA Package in Hungary

The VIDA (VAT in the Digital Age) package aims to digitize the EU VAT system and will significantly transform current invoicing and reporting practices in Hungary. According to the draft legislation, electronic invoicing will be mandatory for transactions between domestic and intra-community businesses. Paper invoices will only be allowed in limited cases. The regulation introduces new elements, such as buyer reporting and "status reports" as well as an optional PEPPOL connection for international electronic invoicing. VIDA-based e-invoicing will gradually become available, starting in 2028. Mandatory implementation will occur in multiple stages and be completed by 2035 at the latest.

Hungary Introduces New Environmental Tax Incentive

From 1 January 2026 on, Hungary will introduce a new environmental tax incentive within the corporate tax system. The incentive applies to investments and renovations with a current value of at least 100 million HUF (ca. 250,000 EUR) aimed at the rehabilitation of natural habitats or the implementation of climate-related solutions. Companies may apply the incentive in the tax year following the commissioning of the investment or in the year of the investment and the subsequent five tax years. The amount of the incentive depends on the

type of the project and can reach up to 100% of eligible costs for environmental damage remediation or 70% for other ecological purposes. The maximum tax relief available for a single investment and taxpayer is the equivalent of 30 million EUR.