27 July 2016
From 1 January 2017 Hungary plans to lower VAT on internet services from 27% to 18%.
However, the European Commission (EC) has requested that they delay this planned cut as they believe that it is in breach of EU VAT rules as internet services are not listed in Annex II of the VAT Directive. Annex II is a list of supplies that may enjoy a reduced VAT rate.
In the future the EC proposes to let member states have the right to set more reduced VAT rates as part of the proposed VAT Action Plan; however it is not clear yet if and when this will be introduced.
LATEST NEWS
EU council struggles to agree on the removal of the...
The EU is struggling to finalise changes to its Import One Stop Shop (IOSS) system as part of the 2028 Customs Reforms, with member states divided over plans...
SEE MORE
LATEST NEWS
Austria proposes a €2 customs charge on a per parcel...
Austria is proposing to impose a €2 charge on e-commerce low-value imports (under €150) entering Austria from outside the European Union from October...
SEE MORE
LATEST NEWS
Grenada to introduce VAT on foreign digital services
At the end of April 2026, Grenada introduced its new Value Added Tax (Amendment) Bill 2026, which will extend its VAT system to include digital services...
SEE MORE