VAT in Hungary

The Value Added Tax (VAT) in Hungary is known as Általános forgalmi adó (ÁFA) in their local language.

What are the VAT rates in Hungary?

The Hungarian VAT rates are the following:

• Standard rate: 27%
• Reduced rates: 5% and 18%

Hungary has opted for the reduced VAT rates on a number of items allowed by the VAT Directive.

Hungarian VAT Rates by goods and services.

The standard VAT rate is 27%. The standard VAT rate generally applies for all goods and services for which no exemption, 0% or one of the reduced VAT rates is foreseen.

The first reduced VAT rate is 18%. This reduced rate applies to certain food products, and entry to open-air music events.

In addition, there is a reduced VAT rate of 5%. This reduced rate applies, in general, to certain basic food products, pharmaceuticals, books, periodicals and newspapers, internet services, hotel accommodation, restaurants, or the sale of immovable property for the purpose of habitual residence under certain conditions, among others.

Supplies and services at 0% are the standard supplies, such as exports or intra-Community supplies.

Finally, some supplies are VAT exempt, such as health and social care, education, financial and insurance transactions and real estate exemptions.

For a precise confirmation of the VAT rate applicable to your product or service in Hungary, we recommend that you contact us. 

• Foodstuff
  5% and 18%
• Water supplies
  27%
• Pharmaceutical products
  5%
• Medical equipment for disabled persons
  5% and 27% - reduced rate applies particularly for medical equipment for blind people
• Children´s car seats
  27%
• Passenger transport
  27%
• Books
  5%
• Books on other physical means of support
  5%
• Newspapers
  5%
• Periodicals
  5%
• Admission to cultural services (theatre, etc)
  18% and 27%
• Admission to amusement parks
  27%
• Pay TV / cable
  27% - 5% reduced rate applies for Internet services
• TV licenses
  27%
• Writers / composers
  5% and 27%
• Hotel Accommodation
  5%
• Restaurant and catering services
  5% - except from alcoholic beverages
• Restaurants
  5% - except from alcoholic beverages
• Medical and dental care
  Exempt and 27%
• Repair of shoes and leather goods 
  27%
• Repair of clothing and household linen
  27%
• Hairdressing
  27%