New Relief Measures in Hospitality: Confectionery Consumption Can Now Also Be Tax-Free

The virtual ink had barely dried on the issue of the Hungarian Gazette published on 30 January 2026, which announced Government Decree 10/2026 allowing tax-exempt representation benefits in the form of hospitality (food, drink) provided in restaurants, when the decree was almost immediately amended. What is the essence of the change? Our newsletter summarises the latest amendments introduced by the new government decree.

Support for the hospitality sector continues to expand: Government Decree 24/2026 (II. 13.), published on 13 February 2026, amends several provisions of Government Decree 10/2026 (I. 30.) and introduces new benefits for the sector. The objective of the changes is twofold: to extend the previous tax and administrative relief measures to confectioneries, and to exempt service charges from the small business tax (KIVA).

Expansion of Benefits: Confectioneries Now Included

One of the most important elements of the amendment is that the rules previously applicable exclusively to restaurants are now extended to confectioneries whose main activity is the sale of confectionery products and sweets. Accordingly, the text of the decree is clarified in several places: alongside the term “restaurant,” the term “confectionery” is now included, significantly broadening the scope of the available relief measures.

In short: not only restaurant consumption, but also consumption in confectioneries may now qualify as tax- and contribution-exempt when provided as representation benefits.

The amendment also introduces a new definition: the term “confectionery” is determined based on the establishment type defined in Government Decree 210/2009 (IX. 29.).

The decree is supplemented with a new Section 3/A, stating that the service charge shall not be considered a wage-type payment for the purposes of the small business tax (KIVA). This benefit may first be applied for tax years beginning after 31 December 2025, that is, from 1 January 2026.

This change can be particularly important for hospitality establishments with significant turnover involving service charges, as it provides a direct tax advantage when calculating the KIVA base.

Clarification of Definitions to Support Practical Application

The amendment also clarifies the definitions of “tax year” and “total annual revenue accounted for,” which supports administrative processes necessary for applying the relief measures.

Entry into Force

The decree entered into force on the day following its publication, meaning the amendments have been applicable since 14 February 2026.

Extension of Service Charge Rules to Confectioneries

Ministerial Decree 8/2026 (II. 13.) of the Minister for National Economy, amending Decree 44/2024 (XII. 9.) NGM on the determination, application and use of service charges:

The aim of this decree is to ensure that confectioneries may also use the option previously available only to restaurants. Accordingly:

• as a liquidity relief, confectioneries may also apply the rule
• whereby up to 20% of the base amount may be considered a service charge
• even if it is not indicated separately on the invoice.

Thus, this option applies not only to the actually charged service fee, but also to the portion implicitly included in the price — up to 20% of the base.

Legislative Amendments

• In Section 2 (3b) of Decree 44/2024 (XII. 9.) NGM, the term “restaurant” is replaced by “restaurant and confectionery,” officially bringing confectioneries into the beneficiary group.
• The decree is supplemented with a new Section 4, stating that the amended rules may first be applied to service charge bases arising from 1 February 2026.

Entry into Force

The decree entered into force on the day following its publication, i.e. on 14 February 2026.