Hungary exempts licensed patient transport from VAT from 1 January 2024

What changed in detail

Act LXXXIII of 2023 on the amendment of certain tax laws, promulgated in Magyar Közlöny on 30 November 2023, inserted a new point (q) into section 85(1) of the Hungarian VAT Act (Act CXXVII of 2007, Áfa tv.) by its section 34(2), with effect from 1 January 2024.

Section 85(1) lists the supplies exempt from VAT because of their public-interest character. The new point (q) adds the transport of injured or sick persons carried out under an official licence, in means of transport specially equipped for that purpose. Two conditions must therefore both be met: the operator holds the official licence for the activity, and the vehicle is specially equipped for patient transport.

The exemption sits alongside point (b), which already exempted patient care and patient transport supplied by a public-service provider within human healthcare. Point (q) is not limited to public providers: it turns on the licence and the vehicle. The consolidated Áfa tv. on the National Legislation Database (njt.jog.gov.hu) shows point (q) with a footnote recording that it was inserted by section 34(2) of Act LXXXIII of 2023.

What it means

The exemption is in force and unchanged as of November 2026. It brings Hungarian law closer to Article 132(1)(p) of the EU VAT Directive, which exempts transport of sick or injured persons in specially designed vehicles by duly authorised bodies. For private licensed operators the effect cuts both ways: their charges no longer carry VAT, but as an exempt activity it also removes the right to deduct input VAT on vehicles, equipment and fuel used for it. Transport in ordinary vehicles, or without the licence, stays taxable.