In Hungary, Parliament is considering reducing VAT rates on Specific Food Products effective from January 1st, 2022

Firstly, let us remind you that in Hungarian fiscalization, the existing VAT rates are: The general VAT rate of 27%. And two reduced rates of 18% and 5%. The reduced VAT rate of 18% ( marked as B ) is applicable for some products (e.g. certain milk, certain dairy products, products made from cereals, flour, and starch).
According to the Hungarian Parliament Bill No. T/17515 the following are the products that made the list for VAT reduction:
- Salt
- Cereal groats and meals
- Milk and milk products
- Bread without added honey, eggs, cheese
- Natural honey
- Fresh vegetables, dried leguminous vegetables
- Fresh fruits, dried fruits
- Basic spices
These changes that are currently in consideration are a way to take the burden off from the citizens and are being considered by the Hungarian National Assembly according to Article 6 of Law on Value Added Tax from 2007. If applied, they will be in force from January 1st, 2022 without a defined ending deadline for now.