Reduced VAT rate for the hotels

Since July, not 20, or 25 percent, but a reduced, 18 percent will be the commercial accommodation sales tax – said Kovács István Secretary-General of the Hotel Association of Hungary.

The Secretary-General added that the reduction of VAT rate from the current 20 percent to 18 does not solve all the problems of the sector, but will reduce the competitive disadvantage against the neighboring countries. According to Kovács István the hotels will not reduce prices due to the VAT reduction. On the one hand, the two-point reduction is very small, on the other hand, prices in Budapest are low in international comparison. A comparative analysis of 40 European cities shows that Budapest is among the last five cities in prices – reports MTI.