Hungary in VAT rate rise to 27% |
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16 September 2011 The Hungarian government has today announced plans to increase its standard VAT rate by 2%, from 25% to 27%. Update: click here to read about EU's comments on Hungary's new 27% VAT rate The current 25% rate was set in July 2009. This new rise comes as part of a package of budgetary measures aimed at achieving 300 billion forints savings and 450 billion new revenues. It is a common misconception that a 25% VAT rate is the upper level of permitted by the European Union. However, the European Commission has never been able to gain agreement to this limit - leaving the Hungarians free to exceed it. Click here to read about a Hungarian application to create a 35% VAT rate for luxury goods The new rate may be introduced in 2012. Click here to check all EU VAT rates.
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