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EC shares Hungary’s stand on internet services VAT, says commissioner

EC shares Hungary’s stand on internet services VAT, says commissioner

Budapest, April 27 (MTI) – The European Commission is expected to allow member states to assign preferential VAT rates to internet services, too, Hungary’s commissioner for digital welfare said in an interview published in Thursday’s issue of business daily Világgazdaság.

Tamás Deutsch said the EC and Ecofin now share Hungary’s stand on the matter, in spite of earlier differences.

Hungary reduced the VAT rate on internet service from 27 percent to 18 percent from the start of this year and will cut it further to 5 percent from the beginning of 2018.

At present, internet service is not among the goods or services to which preferential VAT rates may be applied in the European Union.

Deutsch noted that the VAT cut would reduce budget revenue by about 22 billion forints (EUR 70.5m) next year, but added that the move would spur market growth.

Source: MTI/Világgazdaság

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