A new era of taxation: the Hungarian tax authority prepares for the future

At the Hungarian Tax Authority’s annual tax consultation, officials outlined a vision of a tax system built on trust, simplicity, and digitalisation. The aim is to make taxation increasingly seamless while remaining fully transparent.

Over the past decade, Hungary’s tax system has undergone significant simplification: corporate and social contribution tax rates have been reduced, and the number of tax types has been cut by more than half. The whitening of the economy is reflected in the sharp decline of the VAT gap: from 22% in 2014 to below 3% in 2022, placing Hungary among the EU’s top performers.

In the era of so-called “intelligent taxation,” the focus extends beyond technology to a new mindset. Following the introduction of online cash registers, real-time invoice data reporting, and the e-VAT system, the e-receipt project is replacing paper receipts with digital ones started in September 2025. The next milestone, the ELMA project, will automate the reporting and processing of employee data, with a pilot launch planned for December 2025.

Artificial intelligence is taking an increasingly central role in the operation of the Hungarian tax authority. Real-time data analytics support both risk assessment and decision-making, paving the way for a proactive, data-driven institution that acts not only as a regulator but also as an advisor and partner to taxpayers. The future of taxation aims to create a system that is simpler, more efficient, and more secure, ensuring that as digitalisation advances, transparency remains a fundamental principle.