The Hungarian labour hire market is cleaning up

As provided for by the European Union, the Hungarian VAT Act was amended from 1 April 2021. In this sense, the VAT treatment rules for temporary agency services have also changed and the obligation to apply the so-called reverse CHARGE ceases in most cases. This means that the seller, the invoice issuer, i.e. the temporary agency, will now pay VAT. Until now, the burden has been on the company employing the temporary agency, i.e. the buyer. In the past, this special VAT regulation was introduced to reduce significant abuses and lawlessness in the sector.