Hungary announces VAT exemption for prescription medicines

Prescription medicines are to be fully exempted from VAT from 1 September 2026; VAT on firewood falls from 27 to 5 percent from the autumn. In addition, around 400,000 families in need will receive back-to-school support of 100,000 forint.

Prime Minister Péter Magyar announced the measures on 27 July 2026 in an extraordinary session of parliament, presenting them as part of the relief policy of his government's first roughly 70 days. At 27%, Hungary has the highest standard VAT rate in the EU. Second source: 10perc.hu, 28 July 2026.