The deadline for the payment of the tourism development contribution!
The declaration and payment deadline are approaching for those companies that are obliged to pay the tourism development contribution. The tourism development contribution must be paid to the companies obliged to submit a monthly VAT return by May 22. The 4% contribution must be determined, declared and paid again, given that the discount introduced due to the corona virus epidemic expired on March 31, 2023, which was provided for in Regulation No. 468/2022 on measures to support the tourism and hospitality sector (XI. 21.) Government Decree contains.
The tourism development contribution must be paid by those who pay VAT. Annex No. 3 II. provide a service subject to a 5% tax rate according to points 3 and 5 of the table included in. This includes the supply of food and locally prepared non-alcoholic beverages (from TESZOR'15 56.10), and from January 1, 2020, the provision of commercial accommodation services for consideration and as a non-mediated service.
It is important to emphasize that the contribution payment obligation also applies to those taxpayers who are considered tax-exempt in the VAT system.
The basis of the 4% contribution is the value of the contribution-required service without VAT.
As a general rule, the declaration of the contribution must be adjusted to the frequency of the VAT declaration. Therefore, monthly tax returners must submit the return for the period of April 2023 (on form 23TFEJLH) by May 22, 2023.
Hop on hop off buses
With regard to tourist services, from May 23, 2023, during the state of emergency, the VAT rate for sightseeing buses according to the "hop on hop off" schedule will be reduced from the previous 27% to 5% in the case of service providers who are aware of the electronic payment option (POS terminal) to ensure continuous availability for consumers.
However, at the same time, it is important to emphasize that the provision of the service subject to the 5% VAT rate also becomes an obligation to contribute to tourism development. Thus, part of the VAT reduction is paid in the tourism development contribution. In the event that the respective service providers do not operate a POS terminal, they cannot apply the reduced VAT rate, but they do not have to pay a tourism development contribution either.
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Should you have any questions regarding this newsletter, the tax experts of VGD Hungary will be pleased to assist you.
This newsletter provides general information and does not constitute tax advice.