Proposal to shift basics from 18% to 5% reduced rate
The Hungarian Parliament is reviewing a proposal to move a range a basic foodstuffs from the 18% reduced rate to the 5% rate. If approved, this would be implemented from 1 September 2025.
The change would affect: certain basic foodstuffs including cereal grains and expanded cereals, milk and dairy products, bread, natural honey, fresh vegetables, dried legumes, fresh fruits, dried fruits, and basic spices.
Hungary retains highest VAT rate in Europe
The standard VAT rate will remain at 27%, the highest in Europe.
The current reduced rates are:
- 18%: some basic foodstuffs; outside cultural and sport events
- 5%: basic foodstuffs; accommodation; books; newspapers; medical and pharmaceutical; disposal of immovable property; and other supplies.
Read more in our Hungary VAT guide
