VAT Return: Changes in M‑sheet data reporting effective from 1 July 2026

Modified on Thu, 5 Mar at 11:04 AM

From the tax assessment periods that include 1 July 2026, the content of the 2665 VAT return M‑sheets will change, with particular emphasis on the detailed reporting requirements for deductible VAT. To ensure the correct and accurate preparation of the return (data provision from Business Central), the following steps are required.

To ensure that the return can be prepared from the legally prescribed date, the steps and functions described must be applied as early as possible!

Steps for using the solution:

Step 1: Update Localization – minimum version 111.11.11

The Hungarian Regulatory Localization Pack and the Hungarian National Standards Localization Pack apps must be updated.
The minimum required version number for these apps is 111.11.11.
These updated apps include all the functionalities needed for the extended VAT return.
After updating the localization, the system will automatically (retroactively) collect the deductible VAT data required for the return, broken down by VAT rate—provided that the function mentioned in Step 2 has already been used previously.

Step 2: Handling deductible VAT in Business Central

The data required for the mandated data reporting can only be produced by Business Central if deductible / non‑deductible VAT is recorded using the appropriate functionality ("Non‑deductible VAT").
Documentation for using this functionality:
https://appvision.freshdesk.com/en/support/solutions/articles/43000738282-managing-non-deductible-vat-and-partially-deductible-vat
Once this function is in use, the system collects the data needed for the return in the required structure (by tax rate).

Step 3: Preparing the VAT return

When preparing the VAT return, the system automatically provides data for the relevant fields of the M‑sheets (summary report) — specifically the amounts of VAT placed into deduction at the rates of 5%, 18%, and 27%.

After posting, the deductible VAT amounts appear in the appropriate columns within the Detailed VAT Entries.

The corresponding amounts also appear in the lines of the Detailed VAT Declaration.