VAT Rates in Hungary
The word “taxable supplies” pertains to the supply of goods and services subject to a VAT rate, including the zero rate. In Hungary the VAT rates are as follows:
- Standard rate: 27%
- Reduced rates: 18%, 5%
- Zero-rate: 0%
Unless a particular law provides for a lower rate, zero rates, or exemption, the standard rate of VAT applies to all supplies of goods or services.
VAT Rates in Hungary
Some supplies are designated as “exempt with credit” (i.e., zero-rated), which means no VAT is charged, but the provider may reclaim relevant input tax. Exempt from credit supply include but are not limited to exports of products outside the EU and associated services (for example, transportation) and intra-Community deliveries of commodities.
| Standard VAT rate | |
| A standard VAT (Value-Added Tax) rate is each country’s most typical VAT rate applied to goods and services. It is applied to the majority of goods and services, with some exceptions, such as essential items or other specific goods or services that may have a reduced rate and are presented below. | |
| Rate | Good or Services |
| 27% | All goods or services not included in the reduced rates table below |
| Reduced VAT rates | |
| Certain goods and services are eligible for reduced VAT rates. as essential items or other specific goods or services that may have a reduced rate and are presented below. | |
| Rate | Good or Services |
| 5% | “First Reduced rate” |
| Medicines, pharmaceuticals, and medical products
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| Books and sheet music
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| Aids for the blind, including braille metal plates, typewriters, and boards
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| Periodical publications that meet certain criteria
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| Livestock, such as pigs, cattle, sheep, and goats, and their meat during certain production stages | |
| District heating services that use renewable energy sources under the Act on Electric Energy | |
| Some supplies of residential property | |
| Pork | |
| Poultry, eggs, and raw milk | |
| Fish and fish products intended for human consumption, excluding shark and certain other types | |
| Internet access services | |
| Locally produced food and non-alcoholic beverages served in restaurants | |
| Live music services performed by artists at catered or non-public events, or unticketed public events that are not subject to specific regulations | |
| Commercial accommodation services. | |
| 18% | “Intermediate rate” |
| Products that are made from wheat, flour, and starch | |
| Dairy products such as milk (including flavored milk, but not breast milk) and other dairy items | |
| Certain music and dance performances that are available to the public. | |
| 0% | Zero rated products |
| Exports | |
| Supplies within the European Union (intra-Community supplies) | |
| Outbound financial services. | |
| Exempt From VAT | |
| Insurance and reinsurance services | |
| Various financial services, such as granting and negotiating credit, cash loans, and other debt services, as well as services related to deposits, payments, and transfers of money and financial instruments (excluding debt collection services), and the assignment of property rights and brokering of credit relationships. (However, certain outbound financial services may be exempt with a right to deduction. | |
| The management of investment funds and venture capital funds | |
| The universal postal service and postage stamps provided at face value | |
| Various supplies of immovable property. | |
| Medical and dental care, as well as closely related goods and services, provided by public health authorities and health professionals (including homeopathy) in their professional capacity | |
| Human tissues, organs, blood, and breast milk | |
| Certain public welfare and social services, as stipulated under Articles 85(1)(f)-(g) of the VAT Act | |
| Educational services, including private tuition, and dormitory services, as well as closely related goods (excluding meals) provided in connection with educational and nursery services | |
| Services related to sport or physical education provided by public service bodie | |
| Certain cultural services, such as fairs and exhibitions. | |
| Public radio and noncommercial audiovisual media services | |
| Services and closely related goods provided by nonprofit organizations pursuing social, political, professional, religious, humanitarian, or traditional aims to their members | |
| Cost-sharing services provided by “collaborative communities” at cost to their members (cost-sharing groups). This exemption applies to non-taxable persons who receive the services for the purpose of supplying exempt supplies in the public interest, such as health or education, and who do not receive the services in their capacity as taxable persons. | |
Last Updated: 04/04/2024
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