Hungary: Advertisement tax regime to resume July 1, 2026

The Hungarian Parliament on November 19, 2025, adopted two tax and administrative reduction packages (read TaxNewsFlash), including measures to resume the advertisement tax regime effective July 1, 2026.

The advertisement tax, originally introduced in 2014, is currently suspended, but this suspension will end on June 30, 2026. Beginning July 1, 2026, entities subject to the advertising tax must comply with the obligations set out in the Act on Advertisement Tax.

Under the regime, media publishers and service providers, whether resident or nonresident, are subject to primary advertising tax if they publish ads for consideration in Hungary or target Hungarian audiences in Hungarian. Companies ordering ads may also incur secondary advertising tax on the ad cost if they lack proof that the publisher is ad-tax liable, cannot demonstrate that such proof was requested, or the publisher was not listed in the tax authority’s public database at the time of the order.

Scope

Advertising tax liability applies regardless of tax residency when advertisements are published:

• In media services (e.g., TV, radio) within Hungary
• In press products published or distributed in Hungary, mainly in Hungarian
• Through outdoor advertising media as defined by the legislation
• Online, if predominantly in Hungarian or on websites mainly written in Hungarian

Registration threshold

Nil. Taxpayers who were previously not registered for any other state tax type must register with the tax authority within 30 days of commencing taxable advertising activity.

Sourcing

The tax authority assesses whether a business targets Hungarian consumers, not just whether it operates from Hungary. Indicators include:

• Hungarian language creative or metadata
• Hungary-specific pricing or promotions
• Geotargeting to IP addresses located in Hungary
• Distribution through Hungarian media channels or physical inventory (e.g., outdoor placements in Hungary)

Tax base and liability

For the primary ad tax liability, the tax base is the net sales revenue from the publication of advertisements, and the tax rate is 7.5%. The portion of the tax base up to HUF 100 million is exempt, qualifying as de minimis aid.

For the secondary ad tax liability, a 5% advertising tax is payable by the customer ordering the advertisement, calculated on the consideration paid to the publisher on a monthly basis. The portion of the tax base up to HUF 2.5 million is exempt.

Compliance

Ad tax must be paid annually by the fifth month following the tax year. Two advance payments are required during the year, based on the prior year’s return, and a top-up payment is due in the last month to align with the estimated year-end liability. Taxpayers not registered for any tax type must register with the tax authority within 30 days of starting taxable activity.

Penalties

Failure to register does not trigger an immediate penalty; the tax authority first issues a warning with a 15-day deadline. Continued non-compliance can lead to fines up to HUF 10 million, doubling with each violation. Compliance after notice may waive or reduce fines.

Advertisers who fail to provide the required declaration face similar escalation: an initial notice, then a HUF 500,000 fine, increasing up to HUF 10 million for repeated violations.

If a taxpayer fails to file a return, the tax authority may initiate an audit and estimate the liability.

For more information, contact a KPMG tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

Chinedu Nwachukwu | chinedunwachukwu@kpmg.com
 

Read a November 2025 report prepared by the KPMG member firm in Hungary