Exploring a new city can be a fun way to spend your time, but it can also expensive. One way of cutting down costs is by taking advantage of Hop On Hop Off tours. Fortunately, the Hungarian government has made Hop On Hop Off tours even more budget-friendly by reducing VAT rates.
The Reduced VAT Rates on Hop On Hop Off Tours
As of May 23rd, Hop On Hop Off tours in Hungary will only need to pay 5% VAT. This is a significant reduction, given that the general VAT rate in Hungary is 27 percent, which is one of the highest in the world. Although this is good news, it's important to note that the overall cost of the tours may not necessarily decrease.
The Tourism Development Contribution
Hop On Hop Off tour providers will still be required to pay the tourism development contribution. This means that even though the VAT rate has been reduced, the state will still be taking a portion of the profit. However, this contribution only applies to service providers that enable electronic payment for their passengers.
Exploring Hungary with Hop On Hop Off Tours
Hop On Hop Off tours are a great way to explore the beautiful and historic cities of Hungary. These tours allow you to visit the top attractions and landmarks at your own pace, while also providing informative commentary about the places you're seeing. With the reduced VAT rates, now is the best time to take advantage of these tours and explore the country without breaking the bank.
Other Budget-Friendly Ways to Explore Hungary
Aside from Hop On Hop Off tours, there are many other budget-friendly ways to explore Hungary. Walking tours are a great option as they are often free or very low-cost. Additionally, public transportation is very affordable in Hungary, making it easy to get around the cities without spending too much money.
Questions & Answers
What are Hop On Hop Off tours in Hungary? Hop On Hop Off tours are a popular way to see the sights of Budapest or other cities in Hungary. They are bus tours that allow passengers to hop on and hop off at designated stops as often as they like during a set period of time.
Why are Hop On Hop Off tours becoming more affordable in Hungary? The Hungarian government has decided to reduce the VAT (value-added tax) on Hop On Hop Off tours. From May 23, 2021, such tours will have to pay only 5 percent VAT, which is a considerable reduction.
Will the cost of Hop On Hop Off tours in Hungary become cheaper? According to the source article, the reduced VAT on Hop On Hop Off tours in Hungary is unlikely to result in cheaper prices for consumers. Hop On Hop Off tour operators will have to pay tourism development contribution, so the state will take some of the remaining "extra profit".
When do the new rules regarding Hop On Hop Off tours in Hungary take effect? The newly reduced VAT rate for Hop On Hop Off tours took effect on May 23, 2021.
Do the new rules regarding Hop On Hop Off tours in Hungary apply to all service providers? No, the new rules regarding the reduced VAT rate for Hop On Hop Off tours in Hungary apply only to those service providers which enable only electronic payment for their passengers.