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Hungary Updates VAT Rate for Firewood and Medical Products

Ariel Gómez
September 29, 2026

As of September 1, 2026, Hungary will charge 0% VAT on prescription-only medicines and magistral drugs, per Act XL of 2026 on the Amendment of the Value Added Tax, Section 4.

Hungary has published an information sheet on the tax rate of prescription drugs. Additionally, Hungary has expanded the definition of firewood subject to the 5% VAT rate, per Act XLVIII of 2026 amending Act CXXVII of 2007 on Value Added Tax. The expansion includes firewood in logs, billet, stubs, or bundles, as well as sawdust and wood waste and scrap, in the form of pellets, briquettes or similar forms, for heating purposes. Hungary also published an information sheet on the expansion of firewood.

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Author

Ariel Gómez

Ariel McCullough Gomez is a Junior Regulatory Counsel in the Regulatory Analysis & Design Department at Sovos where she focuses on international VAT and GST issues. Ariel holds a Bachelor’s degree in International Relations from the University of Cincinnati and a J.D. from the University of Cincinnati School of Law. Ariel is a member of the Ohio Bar.
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