VAT is up to 25% from the 1st of July

2009. June 22.

Hungarian VAT is up to 25% from the 1st of July. According to the conditions of the IMF package for Hungary, the government introduced tax modifications and reforms, so the current 20% VAT will be increased to 25%.

The increased VAT will apply to every invoice issued after the 1st of July, 2009. Minister of finance, Peter Oszkó told the national news agency, that those buyers in the newly-built real estate market who already paid the advance payment before 1. July, will be charged only for 20% VAT, only the remaining unpaid amount should be payed with the increased VAT. On the real estate market, VAT only applies in case of buying a newly built property.