The word “taxable supplies” pertains to the supply of goods and services subject to a VAT rate, including the zero rate. In Hungary the VAT rates are as follows:
Unless a particular law provides for a lower rate, zero rates, or exemption, the standard rate of VAT applies to all supplies of goods or services.
Some supplies are designated as “exempt with credit” (i.e., zero-rated), which means no VAT is charged, but the provider may reclaim relevant input tax. Exempt from credit supply include but are not limited to exports of products outside the EU and associated services (for example, transportation) and intra-Community deliveries of commodities.
Rate type | VAT rate | Categories of Products or Services |
Standard | 27% | All supplies of goods and services that aren’t expressly designated as being subject to one of the other rates |
Reduced | 18% | Items manufactured with wheat, flour, and starch |
Milk and dairy products (including flavored milk, but not breast milk) | ||
Commercial lodging services prior to January 1, 2020; | ||
Certain public music and dance activities. | ||
Reduced | 5% | Pharmaceuticals and medical devices are included in this category. |
A collection of books (on paper) | ||
Live specimens or (to some degree) killed and chopped flesh of some big animals (pigs, cattle, sheep, goats) | ||
Meat from chickens, eggs, and milk (i.e., fresh milk and both UHT and ESL) | ||
Services on the internet | ||
Meals provided by caterers | ||
Hotel services include nonalcoholic drinks created on the spot. | ||
Hotel services include nonalcoholic drinks created on the spot. | ||
Sale of immovable property for resale provided that the size of the property does not exceed 150 square meters for flats and 300 square meters for detached homes (with effect from January 1, 2021) | ||
Zero | 0% | Passenger transport for export, intracommunity, and international travel |
Work on moveable property purchased or imported temporarily in Hungary and then exported outside the EU. | ||
Central banks’ access to gold | ||
Exempt | Insurance and financial services | |
System of free postage | ||
Accredited training | ||
Purchase and sale of real estate | ||
Transfer of property ownership or leasing | ||
Medical treatment for humans | ||
Folk arts and crafts |
Last Updated: 27/06/2022
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