The advertising tax was first introduced into the Hungarian tax system in 2014. Following significant amendments adopted in 2017, its application was suspended in 2019. After the most recent legislative changes, the advertising tax will again apply as of 1 July 2026, with tax rates of 7.5% and 5% respectively. In this article, Dániel Takó, Tax Compliance Manager at ABT Treuhand Hungary, highlights the key rules taxpayers should prepare for.
Taxable persons and taxable activities
Advertising publishers are the primary taxpayers, although advertisers commissioning advertisements may also become secondary taxpayers.
The tax applies only to advertisements published for consideration; self-promotional advertising remains exempt.
Advertising publishers are regarded as primary taxpayers; as such, advertising tax obligations fall primarily on:
- media service providers and publishers of press products,
- operators of outdoor advertising media, and
- internet advertising publishers publishing advertisements predominantly in Hungarian or on Hungarian-language websites.
The advertiser commissioning the publication of an advertisement may become a secondary taxpayer if:
- the advertiser does not hold a declaration issued by the advertising publisher, or
- the advertising publisher subject to the tax is not included in the tax authority’s register of advertising publishers.
Advertising publishers are therefore required to provide a declaration confirming either that they are subject to advertising tax and comply with the related obligations, or that they are not subject to advertising tax.
If the advertiser does not possess such a declaration but has requested it from the advertising publisher and fails to receive it within 10 days of receiving the invoice or accounting document, the advertiser may notify the tax authority using the prescribed form. In this case, the advertiser will be relieved from advertising tax liability.
A private individual who is not a sole proprietor cannot be a taxpayer of the advertising tax.
Tax liability
Revenue from advertising remains tax-exempt up to an annual net amount of HUF 100 million; however, this exemption qualifies as de minimis aid. Any taxable amount exceeding HUF 100 million is subject to a 7.5% advertising tax.
Advertising publishers must file and pay the tax once a year, by May 31 following the tax year. In addition, they are required to make two advance payments annually, with adjustments as needed.
Secondary taxpayers are liable for advertising tax at a 5% rate on amounts exceeding HUF 2.5 million per month for the total consideration of advertisements commissioned. They are required to report and settle this tax on a monthly basis with the tax authority.
Penalties
If the advertising publisher fails to provide the required declaration to the advertiser at the time the advertisement is commissioned, the tax authority will request that the declaration be submitted to the authority within 15 days. Failure to comply will result in a HUF 500,000 default penalty.
If the advertising publisher repeatedly fails to provide the declaration to the same advertiser, the tax authority may impose a default penalty of up to HUF 10 million. For each subsequent failure to comply for the same advertiser, the penalty may be set at twice the amount of the previous penalty.
In cases where the advertising publisher does not submit a tax return, the tax authority will initiate an audit and determine the tax base by estimation.
If the taxpayer fulfills the declaration requirement in response to the tax authority’s request, the most recently imposed default penalty may be waived.
What advertisers should watch out for
If there are no further legislative changes before the tax comes into effect in July, each advertisement commissioned will create additional administrative obligations for advertisers, and in some cases may trigger an advertising tax liability.
For this reason, it is essential to carefully document all advertising orders and to verify whether the advertising publisher appears on the tax authority’s register of advertising taxpayers.
If the publisher is not listed, obtaining a declaration from them is crucial in order to avoid tax liability as the advertiser.
If the advertiser cannot obtain the declaration, they must notify the tax authority about the advertising publisher and the commissioned advertisement; only after doing so will the advertiser be exempt from advertising tax liability.
How the advertising tax affects international advertisers and content creators
The advertising tax returning on 1 July 2026 will not only affect Hungarian companies. According to the law, regardless of their place of residence, businesses (and online content creators, influencers) may also be subject to tax obligations if they publish advertisements in Hungarian or target a Hungarian audience.
If a non-Hungarian company offers advertising space or publishes online advertisements in Hungarian or for a Hungarian audience, it may become a primary taxpayer. In such cases, the company must register with the Hungarian tax authority and comply with advertising tax reporting and payment obligations. If the company does not register, it may lead to penalties.
Foreign influencers and content creators are subject to the advertising tax if they publish paid advertisements targeting a Hungarian audience, including ads in Hungarian. In this case, the influencer becomes a primary taxpayer, responsible for filing and paying the advertising tax, just as a media platform or publisher would be.
Typically, the advertiser commissioning the campaign (e.g., a company) does not have a tax liability, if the influencer fulfills the tax obligations. An exception applies if the influencer fails to provide the required declaration – such as the one specified in the contract – in which case the advertiser may become a secondary taxpayer and could be held liable for the tax.
Foreign entities wishing to advertise to a Hungarian audience or on Hungarian platforms must also be aware of the Hungarian regulations: they need to document all advertising orders, verify the tax status of the publisher, and obtain the necessary declarations when required. If the declaration is not available, the advertiser must notify the tax authority to avoid incurring advertising tax liability.
