Tourism Agency: the VAT reduction of restaurant services serves the wage development

With the new VAT cuts in restaurant services this year, the government would like to make the owners and employers of the restaurants to spend the renmaining money on the wages of the employees in the sector – the Hungarian Tourism Agency (MTÜ) told MTI.

They recall that according to the Act on VAT in force, the VAT rate for restaurants and restaurants was reduced to 5 percent from 1 January 2018 on local food and locally produced non-alcoholic beverages. The VAT reduction process started already on 1 January 2017, when the VAT rate declined from 27 percent to 18 percent in the case of catering services for hot-cooked food. (MTI)