VAT on internet subscriptions may be reduced to 18%

The VAT rate on internet subscriptions may be reduced from 27% to 18% from January next year, daily Napi Gazdaság reported.

According to Napi Gazdaság, one of the main pillars of the public utilities tax may be reduced from 2017. However, the deployment of the ultra-fast broadband internet network would be a prerequisite for this to happen, as the telecommunication sector has not invested too much into technical developments since the introduction of the tax system. The government would contribute to the development with HUF 150 billion.

A sectoral tax on telecommunications companies could also be gradually phased out in a similar way to the tax on banks, the paper said.

The government will take the opinions of the respondents to the national consultation on internet into account, and will include the comments in the possible amendments of the current laws, the paper added.

translated by Gábor Hajnal

Source: http://hirado.hu