Glossary

Glossary of Hungarian tax terms

Plain-language definitions for the terms used across our guides and in EV Napló itself.

Alanyi adómentesség (VAT exemption): The exemption from charging VAT that a sole proprietor can choose if their revenue in a calendar year stays under the statutory threshold.
Átalányadó (flat-rate tax): A simplified tax regime where income is calculated not from actual costs, but from a fixed percentage of revenue set by law for your activity.
Basic records, alapnyilvántartás: The core, legally required record in which a sole proprietor logs revenue in chronological order, and under vállalkozói szja, costs as well.
Closing stock, záró készlet: Under vállalkozói szja, the inventoried value of goods and materials still on hand when a sole proprietor ceases activity or switches tax regimes, taxable as revenue at that point.
Community VAT number, közösségi adószám: The VAT identifier a sole proprietor uses for purchasing goods or services from taxpayers in other EU member states, typically under the reverse charge mechanism.
Company car tax, cégautóadó: A monthly tax triggered when a sole proprietor deducts a personal vehicle's actual operating costs, based on a mileage log, instead of using the monthly per-kilometer flat rate.
Cost ratio (költséghányad): Under átalányadó, the percentage of revenue the law treats as your deemed cost, used to calculate taxable income without itemized receipts.
CSED (baby care allowance): The social security cash benefit paid during the period equivalent to maternity leave, which a sole proprietor can also qualify for based on their insured status and prior income.
Depreciation, écs (értékcsökkenési leírás): Expensing the purchase cost of a fixed asset, such as equipment or a vehicle, over several years rather than all at once, under vállalkozói szja.
Dividend base, osztalékalap: Under vállalkozói szja, the after-tax profit remaining once vállalkozói szja is paid, taxed again at withdrawal as a dividend-type SZJA.
E-nyugta: The mandatory electronic reporting of issued receipts to NAV, required of every proprietor obligated to issue receipts, from September 2026.
Family tax allowance, családi kedvezmény: An allowance that reduces the SZJA tax base, which a sole proprietor can also claim against flat-rate income or the kivét, based on the number of dependent children.
Guaranteed wage minimum, garantált bérminimum: A statutory wage floor higher than the minimum wage, applying to activities that require at least secondary education or a vocational qualification.
Income minimum, jövedelem-minimum: Under vállalkozói szja, a deemed minimum tax base, set as a percentage of revenue, used instead of actual business income when the latter is lower.
Installment payment, részletfizetés: A payment relief option available at NAV for settling a tax debt in multiple installments, available in an automatic, interest-free form for smaller amounts.
KATA: The flat-tax regime for kisadózó vállalkozók: a fixed monthly amount, but since the 2022 reform only available to a narrow group, generally those working exclusively for private individuals.
Kivét (withdrawal): Under vállalkozói szja, the amount you set yourself as payment for your own work, subject to SZJA, social security, and szocho.
Local business tax, HIPA: A tax owed to the municipality where your business is registered, based on the net revenue from your business activity.
Main-occupation sole proprietor: A sole proprietor who doesn't fall into the secondary-occupation or supplementary-activity (retired) categories: their monthly social security and szocho base is at least the minimum wage.
Mileage log, útnyilvántartás: The record distinguishing a vehicle's business and private use, logging the route, distance, and purpose of each trip, required for itemized vehicle cost deduction.
Minimum wage: The statutory minimum monthly pay for a full-time employee; for sole proprietors, the base figure behind social security, szocho, and several átalányadó thresholds.
NAV Online Számla: NAV's real-time invoice data-reporting system, into which most invoices issued to a domestic taxpayer must be submitted automatically at the time of issuance.
Pausing a business, szüneteltetés: A temporary suspension of a sole proprietor's activity, lasting at least one month, during which most ongoing filing and contribution obligations no longer apply.
Per-diem travel allowance, kiküldetési átalány: A flat daily allowance a sole proprietor under vállalkozói szja can deduct for domestic business travel, without itemized receipts.
Reverse charge, fordított adózás: A VAT mechanism where the buyer, not the seller, reports and pays the VAT, common in certain domestic transactions and in intra-EU purchases of goods or services.
Secondary-occupation sole proprietor: A sole proprietor who also holds employment of at least 36 hours a week, or studies full-time, alongside their business: there's no minimum social security or szocho base.
Self-correction, önellenőrzés: Correcting a tax return you already filed, on your own initiative, before NAV finds the error.
Social contribution tax, szocho: Tax owed on a sole proprietor's own income, the kivét or the flat-rate income, generally on at least the minimum wage for a main-occupation proprietor.
Social security contribution, tb járulék: The contribution that establishes eligibility for social security benefits, such as pension and health insurance, paid on a sole proprietor's own income.
Sole proprietor, egyéni vállalkozó: A natural person conducting business in their own name and at their own risk, without a company registry filing or share capital, established simply by entry into the register.
SZJA (personal income tax): The tax on individuals' income, whose rules apply to you as a sole proprietor too, whether you're taxed under átalányadó or vállalkozói szja.
SZJA advance, szja-előleg: A quarterly, or in some cases monthly, prepayment against a sole proprietor's expected annual SZJA, settled to its final amount in the annual SZJA return.
ÖVTJ code: The activity classification code sole proprietors use, both at registration and afterward, to identify each activity they carry out.
Vállalkozói szja (VSZJA): An itemized-cost tax regime, where a 9 percent business SZJA is due on income calculated from actual revenue and documented costs, followed by 15 percent SZJA on any withdrawn dividend base.

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