Hungary to try 35% Luxury VAT rate again
- Jul 26, 2013 | Richard Asquith
The Hungarian Prime Minister has promised to attempt to introduce again a higher rate of Hungarian Value Added Tax on luxury goods.
The Hungarian VAT rate of 27% is already the highest in the European Union, and was set in 2012 as the country struggled to contain its raising state deficit. The government first raised the prospect of a higher rate in 2012, but the European Commission rejected it. Under the EU VAT Directive, which governs the broad rules of the European VAT system, countries may only have three rates. They are free to set the higher, standard rate provided it is 15% or above.
The tax, if implemented, would be levied on expensive cars and jewelery.