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.

1000

Related content

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

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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