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Articles by: Grant Thornton Hungary

Mid-market companies are the new engines of sustainability

Grant Thornton research: ESG and business growth go hand in hand

According to Grant Thornton’s latest international research, mid-market companies worldwide increasingly regard sustainability not merely as a regulatory obligation, but as a strategic growth driver. Nearly 90% of the surveyed businesses plan to maintain or increase their sustainability investments over the next 12 months, while more than half of business leaders already associate ESG directly with tangible business benefits.

Across the globe, we see that sustainability initiatives are less about compliance and more about creating business and economic value, becoming key drivers of competitiveness and brand strength. Mid-market leaders have recognized that ESG is not a cost but an investment — one that simultaneously enhances operational efficiency, strengthens employee engagement, and opens doors to new markets.

The Grant Thornton International Business Report (IBR) surveyed nearly 15,000 mid-market business leaders across 35 countries worldwide.

In 2025, 41.6% of companies cited staying ahead of competitors and 38% cited reputation enhancement as their primary sustainability-related business goals — both significantly stronger motivations than a year earlier.

The long-term business benefits are equally tangible: more than half of mid-market companies (54%) believe sustainability increases future profitability, while 51.3% expect it to drive revenue growth.

Key findings from the research:

  • 85.9% of mid-market firms plan to maintain or increase sustainability investments this year.
  • Nearly half (49.8%) say sustainability performance is key to entering international markets.
  • A majority (54%) expect higher sales prices and improved profitability as a result of sustainability-related investments.

A defining strength of mid-market companies is their agility in responding to market changes. It is now clear that those who proactively integrate sustainability into their business strategy gain a competitive edge. This is not only about regulatory compliance but also about meeting the expectations of clients, investors, and employees alike.

Where are the investments flowing?

The most popular area is renewable energy (43.5%), supported by cost-efficiency and tax considerations. At the same time, commitment to diversity and inclusion has grown markedly: in the U.S., the proportion of mid-market firms investing in such programs rose from 31% to 44.8%.

In Hungary, the situation is partly similar — renewable energy continues to play a major role, while climate adaptation and internal governance measures (ethical codes, whistleblowing systems, supplier due diligence) are gaining importance, particularly as the mandatory “compliance” component of sustainability reporting gradually eases.

Reporting: a business tool, not a burden

Despite the changing regulatory landscape — including the EU’s CSRD simplifications — 72.9% of mid-market companies continue their sustainability reporting efforts. Among them, 44.8% consider transparency valuable from a business perspective, and 35.9% regard it as an integral part of their corporate mission.

Companies unable to demonstrate credible sustainability practices risk jeopardizing key business relationships. This is not merely a reputational issue — it can determine whether they remain part of critical supply chains.

It is also important to highlight the role of collaboration: costs and complexity remain shared challenges. Working together with investors, industry peers, and clients makes it easier to develop viable and broadly applicable sustainability practices.

Barriers and opportunities

The most significant barriers include costs (40.9%), regulatory complexity (35%), and administrative resource demands (32.3%). However, businesses increasingly recognize that sustainability investments can yield rapid returns and create long-term operational stability.

Currently, the greatest challenge is not cost, but economic uncertainty. The business confidence index is 26% lower than a few years ago, prompting many companies to act cautiously and scale back investments.

At the same time, the easing of regulatory pressure has opened up new opportunities: together with our clients, we can now focus more on identifying and implementing value-creating, long-term sustainable projects. These initiatives not only generate competitive advantages but also contribute to cost reduction and enterprise value growth.

Thanks to the trust of our clients, we have already prepared numerous ESG reports for first-wave obligated companies — and our experience shows that these almost invariably deliver tangible business benefits.

Grant Thornton joins the IFRS Sustainability Alliance

For Grant Thornton, sustainability represents a shared opportunity for strategic value creation together with our Partners and Clients. Strengthening this commitment, our firm has joined the IFRS Sustainability Alliance — a global professional community shaping the future of ESG reporting and sustainability standards.

Established by the IFRS Foundation, the Alliance works to harmonize sustainability reporting and promote the widespread adoption of the IFRS Sustainability Disclosure Standards (IFRS SDS). Its members include leading global corporations, regulators, investors, and advisors who are collectively seeking answers to the business challenges of sustainability.

Through Grant Thornton’s active participation, the firm will:

  • gain direct access to the latest international developments and guidelines,

  • represent the interests of its clients in global sustainability discussions, and

  • develop practical solutions for mid-market and large enterprises to meet both regulatory and market expectations.

“For our clients, it is essential not only to comply with ESG regulations, but to create real value through them.
By joining the IFRS Sustainability Alliance, we have gained another channel through which we can actively help shape the professional environment in which sustainability can become a genuine competitive advantage.”

This membership marks another milestone for Grant Thornton Hungary, reinforcing our ability to combine the global knowledge of our international network with local expertise — supporting clients throughout their sustainability transition in the service of business growth and long-term value creation.

Leadership change at the head of Grant Thornton: Gábor Szarka became the new Managing Partner of the group

Budapest, September 9, 2025 – Leadership change at the Hungarian office of the world’s sixth-largest advisory network: as of September 1, Gábor Szarka holds the position of Managing Partner of Grant Thornton Hungary, succeeding Waltraud Körbler, who led the company for more than three decades. Gábor Szarka’s appointment promises a combination of professional excellence and people-centered leadership at the firm.

Under the leadership of Waltraud Körbler, Grant Thornton Hungary has become a key player in the domestic advisory market: she built new service lines and established strong international embeddedness.

“Over the past more than thirty years, we have achieved success together; without the support and commitment of colleagues, we could not have come this far. I am confident that Gábor’s commitment and professional experience will guarantee the further strengthening of the company,” said Waltraud Körbler.

Gábor Szarka has been working in the financial and advisory sector for more than twenty-five years, ten of which at Grant Thornton. He previously expanded his professional experience in the banking sector, at international advisory firms, and in real estate development. At the Hungarian office of Grant Thornton, he has led numerous areas, from business valuation and transfer pricing advisory to outsourcing, and later played a leading role in the development of internal functions and the introduction of new innovative advisory fields. In addition, he has been actively involved in connecting the company’s regional and global network with local operations. His broad professional experience provides a solid foundation for the company’s future growth.

“Throughout my career, I have always worked along the principles of Anglo-Saxon openness, mutual respect and integrity. This attitude is particularly important in an industry where, in addition to professional excellence, human relationships represent the greatest value,” said Gábor Szarka.

As the new leader, he considers it a key priority to continuously develop the professional knowledge of the team, deepen domestic and international cooperation, and strengthen the recognition of the Grant Thornton brand in Hungary.

“I would like our colleagues in Hungary to be truly proud of working at Grant Thornton. This shared culture, cohesion and professional high standards will be one of the cornerstones of our success,” he emphasized.

Grant Thornton is present in more than 150 countries worldwide and works at the forefront of the advisory market. Under the leadership of Gábor Szarka, the Hungarian office will continue to strive to support its clients at the highest professional level in a rapidly changing economic and business environment, while further strengthening its professional position and, through its international connections, ensuring clients the combination of global knowledge and local expertise.

The deadline for reclaiming VAT paid abroad is approaching

The Hungarian deadline for submitting an application for reclaiming value added tax (VAT) paid abroad during the 2024 calendar year is 30 September 2025. The reclaim process is complex; below we present, without claiming completeness, the most important detailed rules.

Hungarian resident companies cannot reclaim abroad paid VAT (“VAT”) in their Hungarian VAT return. The reason is that in the case of services used abroad or goods purchased there, the VAT paid by the Hungarian company is paid into the budget of the foreign country and not into the Hungarian budget; therefore, in such cases, the Hungarian Tax Authority (NAV) is not the competent authority.

By what methods can VAT paid abroad be reclaimed?

The right to deduct VAT (subject to other conditions being met) applies to all taxpayers established within the territory of the European Union; therefore, there are two methods available for reclaiming VAT paid abroad (which, however, are not alternatives to each other):

  • registration (tax registration) in the given EU Member State; or
  • reclaiming foreign VAT as discussed in this article.

The former (reclaim by way of registration) is only possible if in the given EU Member State a taxable economic activity was also carried out to which a locally performed transaction is linked. Since in the vast majority of cases this is not the case, in the absence of such activity as well as of a local seat or establishment, VAT may only be reclaimed through a separate procedure, according to the rules of foreign VAT refund.

It is in any case necessary to define what we mean here by “abroad.” For Hungarian taxpayers – based on Council Directive 2008/9/EC – VAT paid in all EU Member States (currently 26 countries in addition to Hungary) may be reclaimed. Outside the EU, however, only VAT charged in a country with which Hungary has concluded a bilateral reciprocity agreement may be reclaimed. At present, the following six countries are included: the United Kingdom (which left the EU), as well as Liechtenstein, Norway, Switzerland, Serbia and Turkey.

Thus, in relation to the foreign VAT reclaim procedure discussed here, a total of 32 (European) countries are concerned: 26 EU Member States and 6 “others.”

Who can apply for a refund of VAT paid abroad?

The reclaim process can be started by completing a special application form (the so-called ELEKAFA form) and submitting it (exclusively) electronically. The reclaim has several conjunctive (simultaneously applicable) conditions:

  • the applicant must qualify as a foreign taxpayer in relation to the country concerned;
  • the applicant may not have had an establishment in the country concerned during the application period;
  • the applicant may not have had any locally performed transaction in the country concerned during the application period;
  • the applicant must have used the goods or services concerned for taxable economic activities.

Consequently, a Hungarian taxpayer is not entitled to a refund of VAT paid abroad if, by virtue of its domestic activities, it is not entitled to deduct VAT at all, or if it has chosen exemption for small taxpayers.

When reclaiming foreign VAT, the rules of the source country apply!

For reclaims from any of the 26 EU Member States, the application must be submitted to the Hungarian Tax Authority (NAV), whereas for the other six countries – including the United Kingdom – it must be submitted directly to the tax authority of the country concerned. Applications submitted to the NAV are automatically forwarded by NAV to the tax authority of the Member State concerned, and the applicant has no further action to take in this respect. In all cases, the application is assessed by the tax authority of the country concerned.

As a result, the language of the procedure is not Hungarian, and if the foreign tax authority has further questions, it will almost certainly not contact the applicant company in Hungarian. Based on our experience, it is advisable to regularly check the spam folder of the e-mail inbox during the procedure, and it may also be worth involving a foreign tax advisor as a contact person to make communication with the foreign tax authority easier and faster and thus speed up the assessment of the refund claim.

For fuel, if the tax base reaches EUR 250, and in other cases if it reaches EUR 1,000, copies of the invoices proving the economic activity must also be attached to the application. It is essential to collect the invoices and other documents concerned in advance, as only one application can be submitted per period and per country. It should also be noted that above EUR 400, it is not mandatory to wait until the annual submission deadline, as in this case an application may already be submitted for a period covering at least three months. However, even then the single-application rule applies.

It should be emphasized that in the case of foreign VAT refund, in all cases the national rules of the source country are applicable, i.e. only that VAT may be reclaimed which can be deducted in the country concerned (regardless of whether such VAT would also be deductible in Hungary). Although VAT regulation is in principle harmonised at EU level (as national VAT Acts were all prepared on the basis of the same EU Directive), there may still be national specificities in certain details. A typical example is that, unlike in Hungary, in some EU Member States the VAT content of fuel for passenger cars is also fully deductible.

The deadline is of forfeiture nature

In the case of EU Member States, the deadline for submitting the application is forfeiture: 30 September (this year it falls on a Saturday; nevertheless, the relevant legislation does not extend the deadline to the next working day). Missing this deadline means there is no remedy or request for justification possible. In the case of the six non-EU countries, specific deadline rules apply.

Applications are usually assessed within 4 months. If the foreign tax authority requests supplementation or a statement, the deadline may be extended, but the procedure may not exceed 8 months.

As can be seen, reclaiming foreign VAT is by no means a routine task even in the life of an average business. Difficulties may arise from the fact that the deadline is of forfeiture nature, that the relevant background rules must be precisely known (which in some cases means knowledge of the national regulations of the foreign country concerned), and also from the fact that the procedure is not conducted in Hungarian.

Our tax experts with international background are at your disposal to support you and your company in this procedure full of pitfalls!

This newsletter was prepared based on the information available at the date of publication and for general informational purposes only; it does not constitute personalised tax advice and does not substitute it in any respect.

NAV Online Invoice System changes 2025

Validation rules to tighten from September 2025

Since its introduction in 2018, the NAV Online Invoice System has undergone continuous development, aimed at more accurate data reporting and improved data quality. The new business validations, effective from 15 September 2025, will once again bring stricter requirements for businesses. The changes will affect not only invoicing software but will also have a direct impact on accounting and tax processes.

The new rules will already be available in the test system from 1 September 2025, giving companies and developers the opportunity to prepare in advance.

Why are the changes necessary?

The aim of the Hungarian Tax and Customs Authority (NAV) is to ensure that the invoice data submitted by businesses is as accurate and reliable as possible. This not only facilitates the work of the authority but also benefits businesses, as digital services built on accurate data – such as the eVAT system – can operate more smoothly.

NAV submitted the proposed changes for a two-month professional consultation, during which several market participants provided feedback. Based on these responses, the draft was modified at several points, so the finalised system takes professional practice better into account.

The main changes in the NAV Online Invoice System

From September, the following modifications will take effect:

  • Three new WARN messages will be introduced.

  • Three existing WARN messages will be discontinued and will no longer be displayed.

  • One INFO message will become a WARN, highlighting content-related issues.

  • Fifteen WARN messages will become ERROR messages, which will prevent data submission in the future.

What is the difference between ERROR and WARN?

  • ERROR messages are critical: data submission cannot be completed until the error is corrected.

  • WARN messages do not block the submission of invoice data but indicate a content issue that may, in the long term, also lead to incorrect or inaccurate reporting.

Ignoring WARN messages is therefore risky, as NAV’s aim is to ensure that all details of XML-based data reporting are correct and consistent.

List of new ERROR rules

NAV has specified exactly which WARN validations will become blocking errors. Among them:

  • 330 – Closing date of performance period cannot be earlier than the opening date.

  • 434 – In case of unique unit of measure (OWN), the corresponding XML element is missing.

  • 560 – The modification document number cannot be identical with the original invoice number.

  • 581–584 – Incorrect VAT marking linked to various tax codes.

  • 591, 593 – VAT data present despite exemption or “outside scope of VAT Act” marking.

  • 596 – In case of domestic reverse charge, the buyer must be a domestic VAT taxpayer.

  • 620 – Performance date required for collective invoice item.

  • 701 – VAT data present in summary despite “outside scope of VAT Act” marking.

  • 1150 – Unrealistic invoice modification sequence number.

  • 1300, 1310 – Incorrect or extreme exchange rate provided.

These errors will automatically prevent data submission in the future, making it essential to review invoicing processes.

New WARN and INFO rules

In the new system, three new WARN messages will be introduced:

  • 435 – Incorrect invoice line item data.

  • 734 – Incorrect summary data.

  • 1311 – Incorrect invoice header data.

In addition, the previous 11400 INFO message (incorrect performance date) will operate as a WARN, thus receiving greater emphasis during data reporting.

How can businesses prepare?

The September transition may pose serious technical and organisational challenges for companies. Preparation is essential, especially for those who regularly encounter WARN messages in the Online Invoice System.

Steps for preparation:

  1. Review processes – Analyse WARN messages generated in the last 12 months, as many will become ERRORs.

  2. Contact invoicing software developers – Ensure that necessary updates and XML modifications are implemented in time.

  3. Use the test environment – From 1 September, companies can verify whether their system complies with the new rules, reducing risks at go-live.

  4. Establish internal monitoring – Regular tracking and analysis of WARN messages helps prevent future disruptions.

Detailed information and the regulatory changes are available on NAV’s GitHub page:
https://github.com/nav-gov-hu/Online-Invoice/discussions/1144?sort=new

Why is preparation important?

The new validation rules are not merely administrative. Failure to correct ERROR messages in time may lead to reporting disruptions, late filing penalties, or other tax authority consequences.

Moreover, the eVAT system and other machine-processing-based services rely on accurate data, meaning that erroneous or incomplete XML files could cause significant issues for businesses in the future.

The September 2025 changes to the NAV Online Invoice System will raise the bar for data reporting requirements. With WARN messages turning into ERRORs, companies must pay much closer attention to invoicing and accounting processes.

Our advisors are ready to use automated tools to analyse the data communication history between your invoicing software and the tax authority’s system. Based on this, we identify the points where your invoicing practices or system operation may need to be adjusted in order to comply with the stricter validation requirements taking effect in September

Those who prepare in time will avoid disruptions caused by errors and ensure that their reporting complies with NAV requirements.

Public Holidays in 2025-2026

Public Holidays and Working Time Schedule in Hungary – 2026

The Hungarian Government has published the official schedule for public holidays and related changes in working days for the year 2026. Based on this, employers and HR professionals can begin planning working time calendars, payroll schedules, and working time frameworks.

For 2025 public holidays, click here.

Deviations from the Regular Work Schedule 2026

The adjusted working schedule for 2026 applies to all employers and employees working under the standard workweek. The following Saturdays are designated as working days in exchange for long weekends:

  • Saturday, 10 January – working day (in exchange for Friday, 2 January)
  • Saturday, 8 August – working day (in exchange for Friday, 21 August)
  • Saturday, 12 December – working day (in exchange for Thursday, 24 December)

Long Weekends in 2026

In 2026, employees can expect three 3-day weekends and two 4-day weekends, including the Christmas holiday.

Public Holidays, Rest Days, and Shifted Working Days – 2026

Date Day Holiday Type
1 January Thursday New Year’s Day Public holiday
2 January Friday Rest day (shifted)
3 January Saturday Rest day
4 January Sunday Rest day
10 January Saturday Working day (shifted)
15 March Sunday National Holiday – Revolution of 1848 Public holiday
3 April Friday Good Friday Public holiday
4 April Saturday Rest day
5 April Sunday Easter Sunday Rest day
6 April Monday Easter Monday Public holiday
1 May Friday Labour Day Public holiday
2 May Saturday Rest day
3 May Sunday Rest day
23 May Saturday Rest day
24 May Sunday Pentecost Sunday Rest day
25 May Monday Pentecost Monday Public holiday
8 August Saturday Working day (shifted)
20 August Thursday State Foundation Day Public holiday
21 August Friday Rest day (shifted)
22 August Saturday Rest day
23 August Sunday Rest day
23 October Friday 1956 Revolution Memorial Day Public holiday
24 October Saturday Rest day
25 October Sunday Rest day
1 November Sunday All Saints’ Day Public holiday
12 December Saturday Working day (shifted)
24 December Thursday Christmas Eve Rest day (shifted)
25 December Friday Christmas Day Public holiday
26 December Saturday Christmas Holiday Public holiday
27 December Sunday Rest day

Public holidays in 2025

The ministerial decree on the working schedule around public holidays in 2025 has been published. Based on this, the planning and preparation of working time calendars, payroll preparation calendars, working time banking systems and working time calculations for 2025 can be started.On 8 April 2024, Decree 11/2024 (IV. 8.) NGM of the Minister of National Economy on the working schedule around public holidays in 2025 was published.The working schedule around public holidays in 2025, which entails a deviation from the calendar working schedule, applies to all employers and their employees working on the general working schedule.

For 2024 public holidays, click here.Let’s see what workdays will be rescheduled in 2025

  • 17 May 2025, Saturday: workday – 2 May 2025, Friday: rest day
  • 18 October 2025, Saturday: workday – 24 October 2025, Friday: rest day
  • 13 December 2025, Saturday: workday – 24 December 2025, Wednesday: rest day

Saturdays rescheduled as workdays in 2025

From the above, it can be seen that there will be a total of three workdays falling on Saturdays in 2025: 17 May, 18 October and 13 December.

Long weekends in 2025

Next year, we will have plenty of long weekends: one weekend will be three days long and three weekends will be four days long, in addition to the five-day Christmas weekend.

Public holidays, rest days and rescheduled workdays in 2025

Date Day Holiday Type
1 January Wednesday New Year’s Day Public holiday
15 March Saturday 1848 Revolution Memorial Day Rest day
18 April Friday Good Friday Public holiday
19 April Saturday   Rest day
20 April Sunday Easter Sunday Rest day
21 April Monday Easter Monday Public holiday
1 May Thursday Labour Day Public holiday
2 May Friday   Rest day (shifted)
3 May Saturday   Rest day
4 May Sunday   Rest day
17 May Saturday   Working day (shifted)
7 June Saturday   Rest day
8 June Sunday Pentecost Sunday Rest day
9 June Monday Pentecost Monday Public holiday
20 August Wednesday State Foundation Day Public holiday
18 October Saturday   Working day (shifted)
23 October Thursday 1956 Revolution Memorial Day Public holiday
24 October Friday   Rest day (shifted)
25 October Saturday   Rest day
26 October Sunday   Rest day
1 November Saturday All Saints’ Day Rest day
13 December Saturday   Working day (shifted)
24 December Wednesday Christmas Eve Rest day (shifted)
25 December Thursday Christmas Day Public holiday
26 December Friday Second Day of Christmas Public holiday
27 December Saturday   Rest day
28 December Sunday   Rest day

Public holidays in 2024

Let’s also review workdays will be rescheduled in 2024

  • 3 August 2024, Saturday: workday – 19 August 2024, Monday: rest day
  • 7 December 2024, Saturday: workday – 24 December 2024, Tuesday: rest day
  • 14 December 2024, Saturday: workday – 27 December 2024, Friday: rest day

Saturdays rescheduled as workdays in 2024

Based on the above, we can see that there will be a total of three Saturday workdays in 2024: 3 August, 7 December and 14 December. To compensate workers for the long weeks in December, the Christmas period will consist of a single, six-day-long weekend, which can be turned into a holiday of more than ten days by taking a couple of days off.

Long weekends in 2024

We have plenty of long weekends this year, with virtually all, public holidays falling during the middle of the week.  Four of these weekends will be three-day weekends and two will be four-day weekends, in addition to the six-day Christmas weekend.

Public holidays, rest days and rescheduled workdays in 2024

1 January 2024 Monday New Year’s Day Public holiday
15 March 2024 Friday 1848 Revolution Day Public holiday
16 March 2024 Saturday Rest day
17 March 2024 Sunday Rest day
29 March 2024 Friday Good Friday Public holiday
30 March 2024 Saturday Rest day
31 March 2024 Sunday Easter Sunday Rest day
1 April 2024 Monday Easter Monday Public holiday
1 May 2024 Wednesday Labour Day Public holiday
18 May 2024 Saturday Rest day
19 May 2024 Sunday Pentecost Sunday Rest day
20 May 2024 Monday Pentecost Monday Public holiday
3 Aug 2024 Saturday Workday (rescheduled!!)
17 Aug 2024 Saturday Rest day
18 Aug 2024 Sunday Rest day
19Aug 2024 Monday Rest day (rescheduled!!)
20 Aug 2024 Tuesday State Foundation Day Public holiday
23 October 2024 Wednesday 1956 Revolution Day Public holiday
1 November 2024 Friday All Saints’ Day Public holiday
2 November 2024 Saturday Rest day
3 November 2024 Sunday Rest day
7 December 2024 Saturday Workday (rescheduled!!)
14 December 2024 Saturday Workday (rescheduled!!)
24 December 2024 Tuesday Christmas Eve Rest day (rescheduled!!)
25 December 2024 Wednesday  Christmas Day Public holiday
26 December 2024 Thursday Second Day of Christmas Day Public holiday
27 December 2024 Friday Rest day (rescheduled!!)
28 December 2024 Saturday Rest day
29 December 2024 Sunday Rest day
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