NACE is the European classification system of possible economic activities. Its latest version is introduced throughout the EU as of January 1, 2025, and in line with this, Hungary is also updating TEÁOR. Read on to see if you have anything to do.
NACE and TEÁOR
NACE in fact covers two Hungarian concepts, TEÁOR and ÖVTJ. TEÁOR is the Hungarian classification system relevant for companies, while ÖVTJ is relevant for freelancers. However, both are based fully on NACE, which means both are getting an update starting from 2025.
While the new NACE is called NACE Revision 2 update 1, or NACE Rev. 2.1 for short, the new TEÁOR is simply called TEÁOR’25.
What does the new NACE mean for your Hungarian company?
The introduction of the new NACE and TEÁOR’25 means that the activities of your existing Hungarian company must be updated to match the new system (while new businesses will obviously use the new system from start). However, there is a chance you do not have to do anything about this. If the change is straightforward, and there is no question which new activities match your old activities, the Hungarian Tax Authority will automatically update their own database AND the Company Registry by January 31, 2025.
You might need to get involved in the following cases:
- If the change is not straightforward because an old activity class was split into several new ones, you will need to select one of the new classes for your activity. In this case, your accountant needs to declare which new activity class matches your activity until July 1, 2025.
- If the change concerns the core activity of your Hungarian company, your articles of association should be modified. This requires a process called company modification which normally entails a fee, but in this case, the fee will be waived. The deadline for this is July 1, 2025, too.
How to proceed?
To make sure you remain compliant with Hungarian regulations, contact the accountant of your Hungarian company and ask if there is anything you need to do.
You can also check the comparison table of TEÁOR’08 and TEÁOR’25 on the website of the Budapest Chamber of Commerce. Just look for the TEÁOR link marked as “fordítókulcs” in the middle of the page. You can search the names and codes of your current company activities, and see if they have been modified.
Business services from Helpers
If you are a Helpers client, you can rest assured that the administration of your Hungarian company is in good hands, whether it concerns the TEÁOR’25 update or other compliance issues.
Helpers has 20 years of experience with providing comprehensive services relevant to business setup and operation in Hungary, from registration through accounting to company modification. Feel free to reach out any time!