Hungary will reduce VAT on prescription-only medicines from 5% to zero from 1 September 2026. The government presents the measure primarily as an affordability policy, particularly for patients requiring regular treatment and people on lower incomes.
The zero rate applies to prescription medicines across wholesale and retail supply, including medicines used in hospitals and high-value products procured and fully financed by the National Health Insurance Fund Management (Nemzeti Egészségbiztosítási Alapkezelő, NEAK). For hospital medicines, the effect is therefore a lower acquisition cost within the publicly funded system rather than a reduction in patient co-payment.
The government says existing price controls should ensure that the VAT reduction reaches patients for reimbursed medicines. Pharmacy and wholesale margins are regulated, while manufacturers cannot simply increase regulated prices to offset the tax change. Non-reimbursed prescription medicines will also be monitored for subsequent net-price increases.
The measure separates prescription medicines from over-the-counter products and uses tax policy alongside reimbursement and price regulation to reduce medicine expenditure for both patients and the health system.
Source: Government of Hungary
Link: Ezek a szabályok védik a vényköteles gyógyszerek áfamentességét (These rules protect the VAT exemption for prescription medicines)
Date: 27 July 2026
Source: Government of Hungary
Link: Eltörli a kormány a vényköteles gyógyszerek áfáját (Government abolishes VAT on prescription medicines)
Date: 23 July 2026
