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Hungary confirms Retail Tax as permanent

  • Jun 18, 2020 | Richard Asquith

Hungary has confirmed that its new COVID-19 retail sales tax will be permanent.

The monthly turnover tax on high street and online retailers was introduced in May 2020. The tax is levied on a sliding scale of up to 2.5% for businesses on sales above HUF 100billion. The reporting threshold is HUF 500million.

The tax was originally announced as a medium-term financing requirements during the coronavirus crisis.

The retail tax is calculated on a 12-month historical basis. Payments are due at the start of each month, calculated at the appropriate band % multipled by one-twelfth of prior twelve months’ turnover.

Need help with your Hungarian VAT compliance?

Researching Hungarian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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