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Advertising tax "reload" – From 1 July 2026, Hungary

This publication’s aim is to provide a concise, structured overview of the reactivated Advertising Tax Act, which will enter into force again on 1 July 2026. The document brings together the key issues, core elements, and interpretative questions highlighted in the material, with particular attention to the scope of taxpayer liability, the triggering of the tax obligation, and the related procedural rules. This publication is intended for general information only and does not replace a detailed review of the legislation or consultation with a qualified adviser.

1     The regulatory framework of Act XXII of 2014

Act XXII of 2014 on the Advertising Tax (hereinafter: Advertising Tax Act) Between 1 July and 30 June 2026, 2019, with its zero percent tax rate and the related exemption provisions, it was practically a non-existent tax type in Hungary. However, unless the legislator decides to amend it again, starting from 1 July 2026, the Act will need to be applied again in its full previous content, together with all supplements and amendments.

Although the Act itself is relatively short, the practical operation and processes of the affected economic sector are quite flexible and wide‑ranging. This contradiction may result in interpretational uncertainties, risks, and—through these—a potentially inconsistent legal practice in relation to the Advertising Tax Act.

2     Taxpayer status

Under the Advertising Tax Act, the tax liability is primarily linked to the publication of advertising in exchange for consideration. At the same time, the Act also — under certain conditions and on a supplementary basis — extends the tax obligation to those who order the advertising publication.

Accordingly, the Act distinguishes between two categories of taxable persons, based on whether the person or entity publishes the advertisement or orders its publication.

2.1    „Primary” taxable person[i]

As the publisher of the advertisement, you are considered a taxable person (regardless of tax residence[ii])

  1. media content provider established in Hungary according to the Media Act[iii].,
  2. media service providers not falling under point a) who make Hungarian-language media content available in the territory of Hungary for at least half of their daily broadcasting time,
  3. the publisher of the press product not falling under point a),
  4. any person or organisation managing outdoor advertising media, and any means of transport, printed matter or real estate property designated for the dissemination of advertisements,
  5. in the case of an advertisement published on the internet, the publisher of the advertisement (the person or organisation entitled to own the advertising space).

The persons and entities listed in points a) to e) are considered primary taxable persons. They are the parties who actually carry out or are capable of carrying out the publication of advertising. As a general rule, they constitute the main obligors under the Advertising Tax Act.

2.2   „Secondary” taxable person

A “secondary” taxable person may be the person or entity ordering the publication of the advertisement. However, the Advertising Tax Act sets out explicit exemption rules. If any of these exemptions apply, the party ordering the publication of the advertisement does not become subject to the Act, and therefore does not acquire taxpayer status.

3     Tax liability under the Advertising Tax Act

3.1   Tax liability of the “primary” taxable person

As outlined in Section 2, the Advertising Tax Act links the tax obligation to the publication of advertising in exchange for consideration, and—on a supplementary basis—also treats the ordering party as a taxable person.

The regulation of the Advertising Tax Act links the tax liability of the publisher of advertisements to the performance of the following activities.

Publication of advertising in exchange for consideration:

  1. within media services,
  2. in a predominantly Hungarian-language press product published or distributed in Hungary,
  3. on outdoor advertising media in accordance with the Advertising Act,[iv]
  4. on any vehicle, printed material, property,
  5. on the Internet, where the advertisement is published predominantly in Hungarian or on a predominantly Hungarian‑language website.

These cases can generally be regarded as transactions carried out within the scope of “primary” taxable person status.

3.2   Incurring of the tax liability of a „secondary” taxable person

As noted earlier, the Advertising Tax Act also considers the ordering of advertising publication as an event giving rise to tax liability. However, the Act provides three exemption rules, under which the ordering party does not become subject to advertising tax.

Accordingly, no tax liability arises for the ordering party if any of the following conditions are met:

I The party ordering the publication of the advertisement is in possession of the statement issued under Section 3(3) of the Advertising Tax Act by the “primary” taxable person.

  1. The ordering party can reliably demonstrate that they requested the statement under Section 3(3) of the Advertising Tax Act from the “primary” taxpayer, and
  2. a) has not received it within 10 working days of receipt of the invoice (accounting document) for the publication of the advertisement, and
  3. b) reported the fact described in point a), as well as the identity of the publisher and the consideration for the publication, to the state tax authority.

III. At the time of ordering the publication of the advertisement, the “primary” taxable person is included in the register published on the website of the state tax authority in accordance with Section 7/A of the Advertisement Tax Act.

If none of these three exemption rules apply, the “secondary” taxable person becomes liable for advertising tax.

Advertising tax declaration

The declaration to be issued by the “primary” taxable person specified in Sections 3.2 point I and II above means the following according to Section 3 (3) of the Advertising Tax Act.

From a formal perspective, the statement must be provided either on the invoice or accounting document issued for the consideration of the advertising publication or on another document, such as—most typically—the advertising publication agreement).

From a substantive perspective, the “primary” taxable person must declare either that he is subject to the tax liability under the Advertising Tax Act and fulfils his tax return and tax payment obligation, or the fact that he is not subject to tax payment obligation in the given tax year in respect of the advertising publication.

The “primary” taxable person does not have to issue a declaration if, at the time of ordering the advertising publication service, it is included in the register published by the state tax authority in accordance with Section 7/A of the Advertising Tax Act (rule identical to point III above)

4     Tax base and tax rate

4.1   „Primary” taxable person

The tax base of the primary taxable person is

  1. annual net revenue derived from taxable activities, increased
  2. the difference between the net sales revenue of the advertising sales agency from the service provided by the contract concluded with the customer for the publication of advertising within the taxpayer’s media content service and the consideration due to the taxable person by the advertising sales agency in connection with this transaction.

Tax rate: 7.5% of the tax base.

4.2   „Secondary” taxable person

If the party ordering the advertising publication service becomes the taxable person for the advertising tax liability (i.e. no exemption applies), then the tax base in their case is the portion of the monthly total consideration for advertising publication exceeding HUF 2.5 million.

The tax rate is 5% of the tax base.

5     Tax exemption

The law provides for two types of tax exemption for “primary” taxable persons: a general exemption for sales revenue[v] and a special exemption related to the subject matter of advertising.

  • HUF 100 million of the net sales revenue of the “primary” taxpayer from taxable activities in the tax year is exempt from the advertisement tax.[vi]
  • The publication of advertisements in connection with a certain type of activity of sports federations, organisations and schools subject to the Act on Sport is exempt from advertising tax.[vii]

6     Procedural rules

6.1   Registration

The rules on registration were amended by the legislator with effect from 1 January 2026, introducing new procedural requirements.

Registration is only mandatory for “primary” taxable persons, and even in their case only if they are “not registered by the state tax authority as taxpayers under any other tax type“.[viii]

Given that, according to the registration rules of the Act on Tax Administration,[ix] “A taxpayer wishing to engage in taxable activities is obliged to register with the tax authority in order to be recorded in the tax authority’s register” thus, this rule under the Advertising Tax Act is typically applicable to non-Hungarian publishers of advertising services (“primary” taxable persons). The Advertising Tax Act lays down strict rules on default penalties for those who fail to register.

6.2   Tax return

The form, effective from 1 July 2026, is not yet known for either “primary” or secondary” taxpayers. Until 2019, the NAV issued the „94” forms for this purpose.

6.3   Tax payment

6.3.1  Tax payments by „primary” taxable persons

Tax advance: There is a tax advance payment obligation twice a year: until the 20th day of the 7th and 10th month of the tax year.

Tax advance top-up: The tax advance top-up obligation (for the amount of the annual expected tax) must be fulfilled by the 20th day of the 12th month of the tax year.

Final tax settlement: The deadline for the final tax settlement is the last day of the 5th month following the tax year.

The provisions entering into force on 1 January 2026 already establish an advance tax payment obligation for the financial year that includes 1 July 2026.

6.3.2  Tax payments by „secondary” taxable persons

If the “secondary” taxpayer does not qualify for an exemption from the advertising tax as noted under Section 3.2, then as of 1 July 2026 they must monitor all invoices, accounting documents and other records relating to advertising publication services through which advertising services or advertising publication have been accounted for.

If the advertising publisher neither not issue the required statement, nor is listed in the relevant register of the Hungarian Tax Authority, and the ordering party does not carry out the protocol described in Section 3.2, then the service recipient — i.e. the party ordering the advertising publication — becomes the taxable person. Consequently, they must declare and pay 5% advertising tax on the portion of the monthly aggregate consideration exceeding HUF 2.5 million, by the 20th day of the following month

7     Relationship with other types of taxes

The legislator repealed point 16 of Annex 3/A of Act LXXXI of 1996 on Corporate Income Tax and Dividend Tax (CIT Act) with effect from 16 July 2023. This provision had previously set out, in a specific form, the treatment of advertising publication costs as expenses not incurred for the purposes of business activities under the CIT Act.

According to the legislative reasoning of the repealing regulation[x]: “The proposal removes the prohibition on the deductibility of advertising costs and the related transitional rule.”

Since the most recent version of the CIT Act, effective as of 28 February 2026, does not contain any changes compared to the rules in force on 16 July 2023, no current CIT rule is known that would restrict the deductibility of advertising tax–related costs.

 

Disclaimer: SME INFO is a general informational compilation. Its purpose is to draw the attention of our Clients to the current legislative changes that we consider important. This publication is not a substitute for a thorough review of legislation and consultation with their advisors. © Process Solutions, 2026 – All rights reserved!

 

[i]   The Advertising Tax Act only uses the term taxable person. The terms primary and secondary taxable person are used solely for the sake of easier understanding.

[ii]   In other words, a foreign company can also be subject to advertising tax if it publishes or carries out advertising (for consideration) in accordance with the Advertising Tax Act, even if it does so incidentally.

[iii]  Act CLXXXV of 2010 on Media Services and Mass Media

[iv]  This is not the same as the Advertising Tax Act! Advertising Act is the. Act XLVIII of 2008 on the Basic Conditions and Certain Restrictions of Commercial Advertising Activities.

[v]  This exemption qualifies as de minimis aid!

[vi]  Section 5 (3) of the Advertising Tax Act.

[vii]  Advertising Tax Act – Section 2 (3)

[viii] Section 7/A (1) of the Advertising Tax Act

[ix]  Section 16 (1) of Act CL of 2017 on the Rules of Taxation

[x]   Act LIX of 2023 on the Contribution of Airlines and the Amendment of Certain Tax Laws

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