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Hungary drops VAT on internet services to 5%

  • Dec 22, 2017 | Richard Asquith

Hungary drops VAT on internet services to 5%

From 1 January 2018, internet services provided to consumers will be charged at the reduced VAT rate of 5%. Such services are currently liable to the 18% reduced VAT rate. Until Jan 2017, the VAT rate was the standard rate, 27%.

The subsidy to boost internet adoption will cost the government an estimated €70m per annum.


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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: richard.asquith@avalara.com. 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.