Hungary: VAT reverse-charge for employee leasing services limited to construction projects

Hungary: VAT reverse-charge for employee leasing

The value added tax (VAT) reverse-charge mechanism for staff (employee) leasing services will only apply for construction-related projects, effective 1 April 2021.


The VAT reverse-charge mechanism will be available for staff (employee) leasing services relating to:

  • The transferring of a building or structure that is to be registered in the real estate register, or
  • Construction and other installation works for the creation, extension, conversion, and other alteration of real estate

The application of the reverse-charge or direct taxation will be determined based on the date of supply (that is, the date when VAT becomes chargeable).

Read a March 2021 report prepared by the KPMG member firm in Hungary

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