At present, VAT Hungary is calculated with a standard rate of 27%. Since 2014, the rate at which Value-Added-Tax (VAT) is calculated in Hungary has consistently been 27%.
There are also reduced rates of 18% and 5%. Hungary applies the reduced rate of 18% on products and services, for instance, food, restaurants, and hotels. The reduced rate of 5% is charged on services and goods, such as medicines, books, etc.
It is important to realize that currently, Hungary is the country with the highest sales tax rate. In the year 1992, Hungary lost 1 billion Euros because of fraudulence in terms of food-related sales tax
Different Vat Rates in Hungary:
The Different rates of VAT that are currently applicable in Hungary are:
The standard rate of 27%:
This is applied to all products and services that are taxable.
The reduced rate of 18%:
This is applied to some goods and services, for instance:
- Certain Food items
- Takeaway Food
- Tickets to some open-air concerts
The reduced rate of 5%:
This is applied to some products and services, for example:
- Some Food items
- Pharmaceutical Products
- Books except for e-books
- Certain social housing
- Restaurant Services
- Catering Services
- Some writer’s services
- Certain composer’s services
- Accommodation Services
Zero-rated VAT is applied to some services, for instance:
- Intra-community transport
- International transport
Goods and Services Exempted from VAT in Hungary:
At present, Hungary has the highest rate of sales tax in the world. However, there are some products and services that are exempted from VAT, for instance:
- Medical services
- Sports services
- Cultural services
- Some Educational services
- Financial services
- Insurance services
- Intracommunity supply of services, goods, and exports
- Real Estate Rental
- Exports of goods outside of the community
- Supply of parts of building and building in addition to the land on which the building stands on
- Cooperating Partnerships
You can check Brazil vat calculator here.
Q: Do I have to pay VAT in Hungary?
Yes, you have to pay VAT in Hungary. VAT is paid in Hungary at the standard rate of 27%. There are also a reduced rate of 18% and 5% and a zero-rated vat charged on some products and services. Furthermore, some goods and services are exempted from VAT.
Q: How much is the tax in Hungary?
By the end of 2020, the Personal Income Tax rate in Hungary is expected to reach 15%. Additionally, in the long term, it is expected to stay around 15% in 2020.
Q: Is Hungary a Tax Haven?
There are in total 7 countries in Europe that have the characteristics of a tax haven, and Hungary is one of those 7 countries according to the Special Committee of the Parliament of Europe on Tax, Evasion, Financial Crimes, and Tax Avoidance.
Q: What is a fair salary in Hungary?
The average monthly salary of a person working in Hungary is about 1,280,000 HUF. The lowest average is 173,000 HUF, and the highest standard is 5,660,000 HUF. This average salary includes transport, housing, and other benefits.
Q: Is Healthcare free in Hungary?
If a person is covered for Healthcare in Hungary, they are entitled to receive all the required care that their health state requires. Medical Services are free of cost in Hungary.