BUDAPEST: Hungary is set to reduce the VAT on internet services from the beginning of 2017 despite a request from the EC to postpone the move.
Quoting Világgazdaság, citing government sources, BBJ reports that the rate will most probably be reduced from 27% to 18%, as was approved by the Hungarian parliament in June.
However, Pierre Moscovici, EC commissioner for economic and financial affairs, has asked the Hungarian government to postpone the reduction as EU rules do not allow it to undertake such actions.
Moscovici added that the EC plans to change the related directive and introduce more flexible regulations. These changes will nevertheless happen later than expected.
