Advertising tax – what does it mean for companies?

The advertising tax is a special tax related to the publication of advertisements and advertising expenditures, which is levied on revenue derived from advertising activities or on advertising spend, and which will again result in an actual tax payment obligation in Hungary from 1 July 2026.

As the advertising tax returns during the year, companies must prepare not only from a taxation perspective, but also at contractual and administrative levels.

• from 1 July, an actual tax payment obligation will again be associated with the advertising tax;
• primarily the publisher, and in certain cases the advertiser, is the taxable person;
• for publishers, the tax base is the revenue from publication, while for advertisers it is the advertising spend;
• publishers are exempt up to HUF 100 million annual revenue, and advertisers up to HUF 2.5 million monthly advertising spend;
• the tax rate is 7.5% for publishers and 5% for advertisers;
• it may involve significant administrative and potential penalty risks.

Which activities are subject to advertising tax?

Advertising tax applies exclusively to advertising publication carried out for consideration. In practice, this includes almost all forms of advertising appearance, such as advertisements in media services (TV, radio), in press products (newspapers), on outdoor advertising media (e.g. billboards along motorways), on vehicles and real estate (e.g. trams or building facades), in printed materials (brochures, promotional items), and on the internet (predominantly Hungarian-language platforms or platforms targeting a Hungarian-speaking audience).

Who are subject to the advertising tax?

Publishers of advertisements: Economic operators who control the advertising space and decide on the display of advertisements. This includes, among others, media companies, online platforms, outdoor advertising providers and certain content creators.

Advertisers: Companies ordering advertisements may also become taxable persons in certain cases. This is not automatic: an advertiser becomes liable only if

• the publisher does not provide a declaration confirming that it has fulfilled its advertising tax obligations, AND
• the advertiser cannot otherwise credibly demonstrate that the publisher has complied with its tax payment obligation.

Tax base and rate of the advertising tax

In the case of publishers: The tax base is the annual net revenue from advertising publication, which is exempt up to HUF 100 million, while a 7.5% tax rate applies to the amount exceeding this threshold. The regulation therefore taxes revenue rather than profit.

In the case of advertisers:If no exemption declaration is available, a 5% tax must be paid on advertising spend exceeding HUF 2.5 million per month. An exemption applies up to HUF 2.5 million.

What should be considered from 2026?

The reintroduction of the advertising tax requires not only tax-related adjustments but also operational preparedness:

Administrative obligations: new registration, reporting and declaration requirements arise.

Contractual terms: clarifying responsibilities between advertiser and publisher is essential.

Cash-flow impact: it has a direct cash-flow impact and indirectly reduces profitability.

Practical relevance of advertising tax

The advertising tax particularly affects digital and media market players, as well as companies with significant marketing expenditures.

The greatest risk does not necessarily lie in the tax rate itself, but in inadequate administration and incomplete documentation, which may result in the transfer of tax liability to the advertiser and significant penalties.

Frequently asked questions

When does the advertising tax become effective again?
It becomes effective again from 1 July 2026.

Who is primarily subject to the advertising tax?
Primarily the publisher of the advertisement, but in certain cases the advertiser may also become liable.

What risks may arise in relation to the advertising tax?
Failure to comply with declaration and administrative obligations may result in the transfer of tax liability to the advertiser and penalties for both types of taxpayers.

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This glossary entry has been prepared based on information available on the date of publication (Wednesday, 22 April 2026) and is intended for general information purposes only; it does not constitute personalised tax advice and does not replace it.

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