How are business expenses managed in Hungary?



Modified on: Tue, 30 Sep, 2025 at 5:58 PM

TABLE OF CONTENTS



This guide outlines the requirements for submitting and approving expense claims in Hungary via the Horizons portal. It includes rules for travel, invoicing, tax treatment, and compliance, aligned with Hungarian tax regulations. 



Invoicing & Documentation

Mandatory Invoice Content

All expense claims must be supported by invoices containing:

  • Date of issuance
  • Invoice number
  • Issuer’s name, address, and tax ID
  • Buyer’s name and tax ID:
    • Horizons Technológia Korlátolt Felelősségű Társaság (Horizons Technológia Kft)
  • Description of goods/services
  • Quantity and net unit price
  • Net value
  • VAT percentage and amount


Additional Documentation

  • Expense report must include:
    • Business purpose
    • Date
    • Employee details


Small Receipts

  • Public transport tickets and minor expenses may be accepted without full invoices, if practical.


Electronic Invoices

  • Accepted if they meet Hungarian e-invoicing standards.



Reimbursement & Taxability


Tax-Free Reimbursable Expenses

With proper documentation, the following are not taxable to employees:

  • Mileage (up to HUF 30/km)
  • Public transport tickets
  • Fuel invoices
  • Accommodation and travel expenses linked to business purpose


Per Diems

Domestic Travel

  • Per diem: HUF 18,000/day
  • Amounts above this are taxable

International Travel

  • Up to 40% of the official daily allowance may be paid tax-free
  • Rates vary by destination and are set annually by government decree.



Travel & Mileage Reimbursement


Mileage Rate

  • The government-decreed flat rate is HUF 30/km.
  • This rate is tax-free if properly documented and linked to a business purpose.


Parking & Tolls

  • Must be supported by receipts.
  • These are reported as separate expenses, not included in the mileage log.


Transport Modes

Mode of TransportRequirements
Air/Train/Bus/TramAllowed for business; ticket/invoice must include passenger name
Taxi/CabAllowed with receipt; business purpose must be stated
Rental CarsPermitted; requires invoice in company’s name and justification of business need


Internal Travel Policy

Employers may define internal rules such as:

  • Economy class for domestic flights
  • Hotel star rating limits
  • Per diem caps

Travel must be business-related and properly documented (purpose, route, date). Any excess beyond government-set rates may be taxable.



Entertainment & Gifts

Business Entertainment

  • Generally taxable unless modest and directly business-related
  • Requires strict substantiation:
    • Attendees
    • Purpose
    • Receipts


Gifts

  • Subject to fringe benefit taxation if exceeding de minimis thresholds



Wellness & Health Expenses

  • Not generally tax-free
  • Only occupational health services required by law are reimbursable tax-free
  • Gym, yoga, therapy, etc. are considered taxable fringe benefits if provided



VAT Recovery

  • VAT is recoverable only if:
    • Invoice is in the company’s name
    • Hungarian VAT rules allow it
  • Hotel VAT is often non-deductible
  • VAT must be reported separately in accounting



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