Magazine: Amendment proposed

Act 127 of 2007 on Value Added Tax has been modified: the VAT on hospitality services decreased to 18 percent as of 1 January 2017 and will reduce to 5 percent from 1 January 2018. However, this VAT cut doesn’t apply to all hospitality services and this can cause problems in implementation and result in wage tensions in the sector. The Guild of Hungarian Restaurateurs (MVI) has proposed amending the law in a way that the VAT cut would apply to all hospitality services, and cover not only food but non-alcoholic drink sales as well.