Do I have to pay VAT on short-term rental income?

In fact, these are two separate questions: whether you need to charge VAT to the guest, and whether you need to submit a VAT return. As a host in Budapest, the second often comes as a surprise, because it may be compulsory even if you do not charge VAT to the guest.

What matters when dealing with the guest is the VAT exemption threshold

If your annual revenue remains below the VAT exemption threshold, you do not need to charge VAT to the guest. The threshold increases year by year: HUF 18 million in 2025, HUF 20 million in 2026, HUF 22 million in 2027 and HUF 24 million in 2028. Above this threshold, accommodation services are subject to a 5% VAT rate.

You pay reverse-charge VAT to the platform

If you advertise on Airbnb or Booking.com, you must submit a monthly VAT return even if you are VAT-exempt. This is because the platform is a foreign company, so you must declare and pay 27% reverse-charge VAT on the commission charged to you. This is not money collected from the guest; it is your cost.

As a proportion of total revenue, this works out as follows: with Airbnb's 15.5% Host-Only Fee, it is 4.185% of revenue; with Airbnb's 3% Split Fee, it is 0.81%. For Booking.com, assuming a commission of approximately 15%, it is 4.05%.

For example, with monthly Airbnb revenue of HUF 500,000 and a 15.5% Host-Only Fee, the commission is HUF 77,500. 27% of this is HUF 20,925. This is the amount of reverse-charge VAT you must declare and pay for that month, even if you are VAT-exempt. On an annual basis, this is HUF 251,100, which many hosts do not account for in advance.

This is for information purposes only and does not constitute tax advice. Thresholds and tax rates may change annually, and your situation is also affected by the composition of your income. Have the specific figures checked by an accountant.