VAT News

Hungary propose to cut VAT on internet access

A proposal was recently approved by the Hungarian parliament to cut the rate of VAT applied on supplies of internet access from the standard rate of 27% to a reduced rate of 18%, with the change scheduled for implementation in 2017.

However, the EC has written to the Hungarian government to remind them that such supplies are not included in the annex to the Principal VAT directive which outlines the supplies upon which member states can apply a reduced rate.

If the cut is implemented, this may lead to infringement proceedings being issued against Hungary.

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