How are different expense categories treated in Hungary for reimbursement?

In Hungary, expense categories are treated in various ways for reimbursement, and many have specific requirements regarding taxability.

For all expense types, proper documentation is mandatory, including VAT-compliant invoices or itemized receipts where required. Expenses must be incurred solely for business purposes, approved by the supervisor, and submitted within the required timeframe (within 45 days) to ensure compliant reimbursement under Hungarian tax regulations

Taxable Categories

Meal Expenses During Business Travel: Meals incurred during business trips are considered taxable by the Hungarian tax authorities and must be grossed up and processed via payroll.

Per Diem Allowance: Any amounts submitted as per diems are treated as taxable, grossed up, and included in payroll.

Personal Mobile Phone Usage: Personal mobile phone expenses are considered a taxable benefit. Approved amounts are reimbursed as taxable and processed via payroll.

Fuel (Not Linked to a Business Mileage Claim): Fuel costs may only be reimbursed when included as part of an approved business mileage claim. Fuel expenses not linked to a mileage claim are considered taxable

Gifts: Gifts purchased to be given to clients are considered taxable expenses

Expenses with Special Requirements

Mileage (Business Travel): Business mileage may be reimbursed for official travel (excluding commuting). Reimbursement includes a flat operating cost rate of HUF 15 per kilometer, plus fuel consumption calculated according to statutory rates and supported by invoices. Any reimbursement exceeding statutory limits is taxable

Commuting and “Travelling Home” Reimbursements: Specific statutory rules apply to commuting and travelling-home reimbursements, including eligibility conditions, distance thresholds, and capped limits depending on transport type and supporting documentation

Parking and Tolls: Parking fees and tolls incurred during business journeys are reimbursable when supported by valid receipts. Parking fines, clamping fines, or other penalties are never reimbursed

Eyeglasses: Eyeglasses (including lenses, frames, or complete glasses) may be reimbursed up to HUF 50,000, provided the expense is supported by a doctor’s note dated prior to the invoice and compliant documentation. Claims exceeding the statutory limit or lacking required documentation are taxable

Non-Taxable Expenses

These include business travel transportation, accommodation during business trips, client and staff entertainment when attendee details are provided and the expense is approved, broadband internet at home (when approved), dongles and data cards for business use, computer equipment and software used exclusively for business purposes, stationery with compliant invoices, business-related training, exchange rate differences with supporting proof, and exceptional business-related cancellation costs, provided all expenses are wholly, exclusively, and necessarily incurred for business purposes and properly documented