Preferential VAT rate phaseout to hit pre-fabricated home sales
Image by Pexels
The phaseout of a preferential VAT rate on home construction is expected to reduce pre-fabricated home sales by "at least 20%" to around 1,200 this year, József Kárpáti, the head of the pre-fab division of the Hungarian National Association of Building Contractors (EVOSZ), told Világgazdaság.
Image by Pexels
Kárpáti said the return to the normal VAT rate had added HUF 6 million-8 million to the typical HUF 30 mln-40 mln price of the most popular pre-fab homes.
Hungary temporarily reduced the VAT rate on home construction from 27% to 5% for four years until the end of 2019, promoting a building boom and supporting the renewal of the countryʼs stock of outdated dwellings.
Kárpáti noted that the share of turnkey pre-fab homes had fallen to 36% this year from 90% in 2019, as home buyers resort to the help of family and friends, or unscrupulous contractors, to finish their dwellings.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
