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.

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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 can be contacted at: He is part of the European leadership team which won International Tax Review's 2019 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.
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