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.
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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