Government to seek joint stand with V4 on reducing internet VAT

Budapest, March 7 (MTI) – Hungary’s government aims to act together with the other Visegrad Group countries (the Czech Republic, Poland and Slovakia) to press Brussels for a reduced VAT rate on internet services, Tamás Deutsch, government commissioner for the Digital Prosperity Programme, told MTI on Monday.

A proposal on the matter could be made at the next meeting of Visegrad Group foreign ministers in May, Deutsch said. “There’s a good chance it will be applied at EU level,” but if the initiative fails to materialise, Hungary will ask for a derogation, he added.

Hungary wants the VAT on internet services cut from 27 percent to 18 percent.EU countries have the option to apply one or two reduced VAT rates which may be applied to goods or services listed in an annex of the VAT Directive, but not to electronically supplied services.

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