How do I configure ÁFA 27% / 18% / 5% multi-rate (EU highest VAT) in Magento?
Hungary has the highest standard VAT in the EU at 27%, with two reduced rates:
- 27%, standard ÁFA (most goods + services).
- 18%, reduced (accommodation / hotel stays, dairy event services).
- 5%, super-reduced (bread, dairy, medicine, books, newspapers, internet access, district heating, residential housing under 150 m², restaurant food + non-alcoholic drinks since 2017).
Magento configuration:
- Create 3 tax classes in Stores → Tax Zones & Rates (ÁFA-27, ÁFA-18, ÁFA-5).
- Create 3 tax rules per rate, scoped to HU (or EU + auto-detect via destination).
- Assign each product’s tax class based on its category, we wire this via the
category_id → tax_classmapping in a custom CategoryAttribute observer so admins don’t set it per product. - For B2B intra-EU with valid VIES TVA, override to 0% (reverse charge).
Tax-inclusive prices on storefront (mandatory in EU B2C); tax-exclusive on B2B if explicitly opted-in. ÁFA 27% impacts perceived price dramatically, for cross-border shoppers a HUF 12,700 price (HUF 10k + 27% ÁFA) feels heavier than the same EUR equivalent elsewhere, so storefront price-presentation matters.