VAT (value added tax)

Value added tax (VAT) is a multiple-phase, net-type tax payable in each phase of production and distribution on the added value. 

The tax is payable by the final consumer of the product or service. VAT is an indirect tax as the payer of the tax and the person bearing the tax burden are different. 

In Hungary, the general VAT rate is 27 percent but there are preferential VAT rates of 5 and 18 percent. 

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