VATLive > Blog > VAT > Hungary cuts hotel VAT to 5%

Hungary cuts hotel VAT to 5%

  • Jul 18, 2019 | Richard Asquith

The Hungarian parliament has approved a range of tax cuts for 2020, including the following VAT amendments

  • VAT on accommodation services from hotels, B&B and house sharing will be reduced from 18% to 5%
  • A range of goods stuffs will be reclassified to 5%

At the same time, the is the introduction of a Tourism Tax of 4% payable by hotels and short-term accomodation providers.

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. 

Latest Hungarian news

Hungary scraps live reporting invoice threshold

Nov 22, 2019

Hungary has proposed withdrawing the HUF 100,000 (€310) invoice threshold on its live VAT invoice reporting regime. The measure is scheduled for 1 July 2020

Hungary live reporting update Apr 2020

Sep 27, 2019  

Hungary is to update the requirements on its live VAT invoice reporting regime from April 2020. The changes affect invoice details and submission requirements

EU VAT and tax veto review

January 25, 2019

The European Commission (EC) has proposed switching from unanimous to majority voting on EU VAT and other tax policies.  The aim is to progress fiscal reforms which face immovable opposition from just a limited number of member states. 

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 this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
VATlive newsletter

Sign up for our free newsletter stay up-to-date with the latest tax news.

VAT Voice

Sign-up to VAT Voice, Avalara’s monthly round-up about VAT and legislation updates to help you stay ahead of the curve.