Construction of new buildings is now subject to the reduced VAT rate of 5%. This is a significant change from the standard rate of 27%. The new rate is intended to boost the construction sector in Hungary.

Changes of VAT rates are often announced with little time before implementation. In these cases, businesses struggle to get their ERP systems updated in such short notice. Moreover, rules on credit notes on invoices issued before the rate change make it complicated from a VAT compliance perspective. Marosa can help assessing the impact of VAT rate changes on your system and tax reporting function.

Related VAT news

VAT rates

Spain

Spain applies temporarily 0% rate to certain foodstuffs

Spain applies a temporarily zero rate to certain foodstuffs until 30 June 2023
Blog, VAT rates

Belgium

Belgium reduced the VAT rate on energy to 6%

Belgium has permanently reduced the VAT rate on energy to 6% on supplies to final customers. A transitional period applies also to B2B supplies.
VAT rates

Ireland

Ireland changes VAT rates for newspapers, tourism, and hospitality in 2023

Ireland reduces the VAT rate of newspapers and certain health products to zero VAT rate, effective from January 2023. Also, the VAT rate applicable to the tourism and hospitality sector will be back at 13.5% from March 2023.