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• Lower VAT for Food Delivery to be Phased out

Lower VAT for Food Delivery to be Phased out

• 15 Jun 2021 10:30 AM
• Hungary Around the Clock

The government will phase out the 5% preferential VAT rate for food takeaways from Au-gust 1, according a recent decree.

The government lowered the tax rate from 27% to 5% in November to offset the negative impact of the pandemic on the catering sector. From November restaurants were only allowed to serve food for home delivery.

The measure was extended on numerous occasions in parallel with the prolongation of other social restrictions.

Restaurants were allowed to re-open at the end of April. Customers with a valid vaccination card can dine indoors, while everyone else can dine outdoors on terraces.

The preferential tax will be withdrawn in six weeks, which gives further relief for the sector to work through much of the summer at reduced VAT rates.

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