Hungary cuts VAT on restaurants and basics

Hungary has proposed that it reclassify restaurant/café services, and a range of basic foodstuffs from the standard VAT rate of 27% to the reduced rates.

Restaurant food and services (excluding alcohol) will be reduced from 27% to 18% from 1 January 2017. They will be reduced again to 5% in January 2018.

There is also a plan to reduce the VAT charges on internet access.

Basic foodstuffs, including milk, poultry and eggs will be reduced to 5% on 1 January 2017.