Understanding Mileage Tracking Compliance in Hungary
For businesses and individuals in Hungary, accurate mileage tracking—known locally as "útnyilvántartás"—is essential for compliance with tax regulations and maximizing VAT recovery. The Hungarian tax authority (NAV) mandates detailed records, including the starting and ending odometer readings for each business trip, the vehicle type, and specific journey details. These requirements ensure businesses can reclaim between 90% and 100% of the VAT on vehicle-related expenses, compared to a default 50% deduction without comprehensive logs since 2019.
Digitalization of mileage logs significantly reduces administrative burdens and enhances compliance. Businesses transitioning from manual methods to digital solutions can reduce the time spent on logs from several hours to just 7 minutes each month. This switch not only ensures accuracy but also provides "NAV-proof" documentation, minimizing the risk of penalties during inspections.