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.

Related articles

Why overlooking the VAT determination process is detrimental in the era of tax digitalisation

As tax moves into the digital world, hundreds of thousands of organisations across Europe will face substantial challenges when it comes to adhering to VAT.

Read more
Infringement Proceedings Brought Against Germany Over E-commerce VAT Rules

The European Commission decided to initiate formal infringement proceedings against Germany over section 22f & 25e of the German VAT Act.

Read more
HMRC Issue Letters on No-Deal Brexit Advice For UK Businesses Trading within the EU

HMRC letters to VAT-registered businesses trading with the EU explaining how to prepare for changes to customs, excise and VAT if the UK leaves the EU without a deal.

Read more