The Hungarian Parliament is reviewing an extension of the temporary Value Added Tax cut on housing and construction. The rate will be maintained at 5% instead of the standard rate of 27%. The cut was first introduced in October 2020 for the calendar year of 2021.
Hungary had previously held its property VAT rate at 5% between 2016 and 2019. During the COVID-19 crisis, Hungary has already cut rates on takeaway and home delivery foods. It also introduced an emergency bank levy.
Under the EU VAT Directive, countries may maintain two reduced VAT rates under the standard rate. Use of the reduced rates are limited to certain supplies defined by Annex II of the Directive. This has been partially relaxed by the European Commission during the coronavirus pandemic.
You can verify any global VAT and GST rates with VAT Calc’s free tax rate tables.
