Hungary Tax Agency Announces Expansion of Construction Services Subject to Domestic Reverse Taxation

The Hungarian National Tax and Customs Administration Dec. 21 announced the expansion of the range of construction industry services subject to domestic reverse taxation. The tax agency clarifies that: 1) starting from Jan. 1, 2023, all construction and installation work is subject to the VAT reverse charge mechanism if it involves creating, expanding, demolishing, transforming, or otherwise changing real estate or its purpose, and if it requires an official license or a notification to any authority; 2) from Jan. 1, 2023, it won’t be necessary to examine if the official permit or notification is related to the construction or installation ...