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Hungary cuts VAT on restaurants and basics

  • VAT
  • 19 April 2016 | Richard Asquith

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.


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.