Hungary may turn to EU for lower VAT on internet

Budapest, March 4 (MTI) – Hungary may turn to Brussels asking reduction of the value added tax on internet services, the government commissioner in charge of internet programmes said on Friday.

Tamás Deutsch said in the online edition of daily Magyar Idők that Hungary’s government decided to cut the VAT on internet services from 27 percent to 18 percent as of January, 2017. Under the current EU rules internet services are subject to the highest bracket VAT rate in a member state, he said. At present the highest VAT rate in Hungary is 27 percent.

Hungary has two options to achieve the VAT cut. It may opt for requesting Brussels to exempt Hungary from the general rule and allow setting a preferential 18 percent rate. The other possibility is for Hungary to lobby Brussels in partnership with the other three Visegrad Four members of the Czech Republic, Poland and Slovakia for the amendment of the related law, Deutsch said.

Source: http://mtva.hu/hu/hungary-matters