EFFECTIVE JANUARY 1, 2025: INCREASED HOSPITALIY THRESHOLD BECAME EFFECTIVE IN HUNGARY
On December 20, 2024, Hungary enacted Act LXXXV of 2024, aimed at enhancing legal competitiveness through deregulatory measures. This legislation introduced significant amendments, including changes to the rules governing promotional events under the Drug Economy Act, Act XCVIII of 2006 (Drug Economy Act) effective as of January 1, 2025.
Amendment to Section 14(2) of the Drug Economy Act
Under changes published in the Hungarian Gazette, Section 14(2) of the Drug Economy Act has been amended. The revised provision addresses promotional events organized by businesses in the healthcare sector for professional, scientific, or educational purposes. These events are intended to provide essential information to licensed healthcare professionals authorized to prescribe, use, or distribute medicinal products, nutrients, and medical devices.
Increased Catering Cost Threshold
The amendment introduces a significant increase in the permissible daily catering cost per attendee at such events:
- New Limit: The daily catering cost may now amount to a maximum of 15% of the of the monthly minimum wage[1], net of VAT.
- Secondary Role Requirement: Catering must remain incidental to the event's primary objective, which should be the dissemination of professional, scientific, or educational content.
Key Change in VAT Treatment
Notably, the calculation now excludes VAT from the capped catering amount, differing from the prior rule, which included VAT within the cost ceiling.
The amendment also broadens the scope of individuals who may attend these promotional events. While previously restricted to healthcare professionals or individuals directly involved in the supply of medicines or medical devices, the revised provision permits businesses to invite other participants under duly justified circumstances.
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If you have any further questions, please feel free to contact us and request the assistance of KNP LAW experts.[2]
[1] Government Decree No. 394/2024 (XII. 12.), which entered into force on January 1, 2025, set the current minimum wage at HUF 290 800 (two hundred ninety thousand eight hundred forints), and the guaranteed minimum wage at HUF 348 800 (three hundred forty-eight thousand eight hundred forints), thus raising the maximum amount of the meal threshold to HUF 43 620 (forty-three thousand six hundred and twenty forints) net as of 2025.
[2] Disclaimer
The contents of this document are for informational purposes only and do not constitute legal advice. Readers are encouraged to seek expert consultation to address specific circumstances or legal requirements related to these changes of the Drug Economy Act.
