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Hungary: VAT rate on takeaway meals temporarily reduced to 5% (COVID-19)

Hungary: VAT rate on takeaway meals temporarily reduced

The Hungarian government has introduced a temporarily reduced rate of value added tax (VAT) of 5% on the supply of meals and non-alcoholic drinks prepared on site for takeaway.

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The measure aims to alleviate the economic losses of restaurants delivering meals as part of the economic protection measures to mitigate the economic effects of the coronavirus (COVID-19) pandemic.

The reduced rate applies to all meals and non-alcoholic drinks that would be taxed as a supply of service at the 5% rate, which applies for on-site consumption.

Government Decree 498/2020. (XI. 13.), prescribing the VAT rate reduction, has an effective date of 14 November 2020 and applies to early February 2021.


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

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