Hungary – AI Tools at Forefront for Tax Compliance

Hungary is one of the biggest supporters of deploying AI-based tools to monitor tax compliance across sectors, including online and offline retailers, the digital economy as a whole, and cross-border transactions. 

The director of the Hungarian tax authority, the National Tax and Customs Office (NAV), recently stated that the country is developing numerous AI-powered risk-based systems to detect non-compliant taxable persons before they file returns. 

AI Tax Tools

This will be a gradual implementation; at the first stage, it will focus on high-risk sectors. The tax authority has already implemented a data-driven approach, as evidenced by the monitoring of online invoices (issuance and reporting), POS transactions, oversight of the logistics data system, and cross-border transactions. 

The AI-supported monitoring tools enable NAV to flag suspicious taxable persons at the invoice stage, potentially triggering audits before returns are filed. 

The NAV report (officially shared on its website) shows that NAV completed more than 100k inspections using AI systems, with more than 20% resulting in supportive guidance rather than penalties. Taxpayers have reported only for 2025, approximately HUF 60 billion in unreported taxes. 

The 2026 plan is to target additional companies that continuously claim input tax credits, businesses operating without employees or an establishment, even planners, courier services, e-commerce marketplaces, and influencers. 

Customs monitoring operations will focus primarily on non-EU trade compliance, low-value goods, and VAT compliance linked to it. 

Tax Compliance

Under new monitoring and detection systems specifically developed for tax compliance, the non-compliant persons will face much more difficulty if they “hope” to escape the tax authorities. Tax compliance is more necessary than ever for non-resident e-commerce vendors or digital service providers.