Hungary’s New Government Proposes 5% VAT on Healthy Foods to Ease Living Costs

• The new Tisza Party government in Hungary plans to reduce VAT on “healthy foods” and firewood from 27% to 5%, and exempt prescription medicines.
• The reform aims to ease cost pressures and simplify Hungary’s complex VAT system.
• Hungary currently has the highest standard VAT rate in the EU at 27%.
• Defining “healthy foods” may lead to disputes and classification challenges, especially for processed and borderline products.

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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