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• Vegetation composition and diversity did not change for six years after the conversion from grazing to mowing. • Even the detailed fine-scale analyses could not reveal differences. • Carbon uptake differed between grazed vs. mowed sites due to biomass removal intensity. • Returning from mowing to grazing would probably restore C uptake because the vegetation composition remained stable. Grasslands could play an important role in supporting livestock, in carbon sequestration and in biodiversity conservation. Different grassland managements may change the vegetation composition of grasslands, which could alter these ecosystem services. We studied the effects of grazing vs. mowing on the vegetation composition (2012–2016) and on the carbon uptake (2011–2013) of sandy grasslands in Hungary to study if the vegetation composition differs and if it does, whether it affects carbon uptake. To observe differences in vegetation composition between the two types of management regimes we performed fine-scale vegetation survey in adjacent grazed and mowed sites. We compared species compositions and vegetation diversity indices between the management regimes based on permutational ANOVA, mixed effect model and information theory models. We used fine-scale vegetation survey because it has the potential to indicate vegetation changes within six years as changes in species richness and diversity are usually detected after 10–20 years. Carbon uptake was measured in parallel with eddy covariance technique at both sites. In spite of the contrasting management regimes the vegetation composition was stable (no differences observed in the diversity indices), while carbon uptake was significantly greater in the grazed (sink: +1 ± 0.7 t C ha−1 year−1) compared to the mowed site (source: -0.3 ± 0.6 t C ha−1 year−1). The vegetation was heterogeneous (patchy) and had a high species richness at both sites (grazed: 91 species ha−1, mowed: 90 species ha−1) which might have contributed to the stability of the vegetation composition. We concluded that differences in carbon uptake existed between the grazed vs. mowed sites due to biomass removal intensity with no differences in the vegetation composition. [ABSTRACT FROM AUTHOR]