Hungarians for VAT Rebate in the Tourism Sector

85% of Hungarians would find it a powerful help if tourism operators received some form of VAT rebate. The proposal came up in a European Parliament committee because it is seen as a useful tool for improving liquidity for players in the troubled sector.

According to a joint representative survey by the Hungarian business news site Napi.hu and Pulzus Research, barely 2% would turn their backs on the sector.

Already in 2020, tourism was in trouble due to the coronavirus epidemic, the closure of countries and restrictions, it is not surprising that commercial accommodation establishments in Hungary registered 58% less, a total of 13 million, guest nights compared to 2019. Domestic guests spent 39% and foreigners 77% fewer (9.6 million and 3.7 million, respectively) guest nights. The total gross sales revenue of the companies concerned decreased by 59% at current prices and amounted to HUF 228 billion in 2020, according to statistical data.

A representative survey, by Napi.hu and Pulzus Kutató, examined the extent to which society supports the relevant actors to receive a tax benefit, the real benefit of which – as VAT is a burden on turnover – can only be achieved after opening the sector. According to the research, the vast majority of Hungarians, 85%, agree with this step in some form. Although 52% of them consider the VAT reduction necessary only for the duration of the epidemic, 35% would maintain it after the sector can recover. Only 11% do not see this as an effective help, while 2% would not take any action.