Budapest, December 15 (MTI) – Reducing the VAT on new homes is aimed at providing affordable accommodation to each Hungarian family, Antal Rogan, the prime minister’s cabinet office chief, said in parliament’s debate on the relevant bill on Tuesday.
The government on Monday submitted a proposal to reduce value added tax (VAT) on new home building from 27 percent to 5 percent.
The bill proposes that a 5 percent VAT rate should apply to homes built between 2016 and 2019. The proposal mainly applies to blocks of flats built in housing parks with total area not exceeding 150 square meters or stand-alone homes only not larger than 300sqm.
Rogan said that people building their own homes will have an opportunity to reclaim the VAT on building materials up to 5 million forints (EUR 15,770). He also announced that in future builders will not be required to apply for a permit for structures smaller than 300sqm.