Hungary Tax Agency Clarifies Domestic VAT Reverse Charge for Construction, Installation Services

The Hungarian National Tax and Customs Administration March 30 posted online Tax Issue No. 4/2026, clarifying the reverse charge mechanism under the VAT Act for construction and installation services. The clarification includes that: 1) VAT applies to purchases of construction and installation products and services, effective Jan. 1, 2024; 2) a service can only be subject to the reverse charge if it is construction or installation work related to real estate activities requiring an official permit or notification to the authority; 3) the official permit or notification doesn’t need to be related to construction; 4) specific rules apply in determining ...