Share with your friends

Hungary: Proposed temporary reduction of VAT rate of 5%, residential units

Hungary: Proposed temporary reduction of VAT rate of 5%

A bill introduced by the Hungarian government would amend the value added tax (VAT) law to provide that effective 2021, the rate of VAT on certain dwellings would be 5%.


Related content

Eligible residential units (either to be built or already existing in a multi-unit residential building with a total net floor space not exceeding 150 square metres) generally would qualify for the 5% rate of VAT.

The VAT rate of 5% would also apply to detached houses having a total net floor space not exceeding 300 square metres.

The reduced VAT rate would be effective 1 January 2021 and would apply through 31 December 2022.

Read a November 2020 report prepared by the KPMG member firm in Hungary

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal