Tax payment related recommendations

László Kovács
president
MVI

The Guild of Hungarian Restaurateurs (MVI) has recently submitted tax payment related recommendations to the decision-makers of the sector. One of these is the simplification of the VAT regulation, basically extending the present preferential 5-percent VAT rate to all hospitality services, with the exception of alcoholic drinks.

As for the tax on representation expenses, which means a 35.99-percent tax burden (the personal income tax and the social security contribution combined), the current system creates great limitation of movement for hospitality businesses. MVI recommends a new system in which hospitality businesses wouldn’t have to pay representation expense tax if the sum is smaller than 2 percent of the company’s sales revenue. //

This article was published in 11/2021 of Trade magazin.