Hungary to carry on with drastic VAT cut for Internet services

The first VAT rate cut for Internet in Hungary took place in January 2017, when the rate was reduced to 18% from 27%. The unprecedented low cost of Internet service could attract tens of thousands of new clients, or even as many as 100,000, Tamás Deutsch, Commissioner for the Digital Welfare Programme, stated at an industry event some time ago. As a combined result of the VAT cut and the launch of state-subsidised low-cost packages for mobile and at-home Internet access, the monthly cost of Internet use will have been reduced 35% in just 13 months by January 2018, he added.

In an earlier press release by Hungary's National Media and Telecommunications Authority (NMHH), the watchdog will be closely watching over service providers to make sure the rules pertaining to lower VAT rates are adhered to.

• Tags:
• internet,
• economy,
• value-added tax,
• vat,
• tax cut