The Government Decree No. 87/2026 (IV. 23.), published on the evening of 23 April, once again amends the application of the advertising tax and, with reference to the state of danger due to the Russian–Ukrainian war, would maintain the current 0% rate of the advertising tax even after 1 July 2026.

The purpose of the Decree is to ensure that businesses do not face additional burdens resulting from the reintroduction of the advertising tax, in particular due to the prolonged economic effects of the war. However, it is important to note that the application of the favourable tax rate is expressly linked to the existence of the state of danger, meaning that the 0% advertising tax rate will remain in force only as long as the state of danger is in effect.

Based on Government Decree No. 424/2022 (X. 28.) declaring the state of danger, the current state of danger will cease on 14 May 2026. This means that, unless a further extension or legislative amendment takes place, the advertising tax would still return from 1 July 2026, which could result in a significant additional burden for the affected taxpayers.

As a number of currently effective legal measures (e.g. food price caps, regulated fuel prices) are linked to the state of danger, it is likely that it will be extended; however, the exact details are not yet known. It is conceivable that a concrete decision on the extension (both its fact and duration) will only be taken in early May, following the establishment of the new Parliament. In the coming period, it is therefore advisable to closely monitor any potential extension of the state of danger or amendments to the advertising tax legislation, as these will determine whether the advertising tax will in fact be reintroduced in mid-2026.

Should the above raise your interest, the experts of Grant Thornton are at your and your company’s disposal.

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This newsletter has been prepared based on information available on the date of publication and is intended for general information purposes only; it does not constitute personalised tax advice in any respect and does not replace such advice.

Advertising Tax returns in 2026

After a seven-year suspension, the advertising tax will re-enter into force in Hungary from 1 July 2026. According to our latest analysis, the return of the regulation imposes critical administrative obligations on both advertisers and publishers. As the tax is reintroduced during the tax year, companies must already prepare their internal processes and contractual frameworks in the spring in order to avoid significant default penalties and the risk of double taxation.

• The advertising tax will re-enter into force from 1 July 2026, and due to its mid-year return, companies must prepare their processes already in the spring.
• The tax affects not only publishers but, in certain cases, also advertisers, especially where declaration management is insufficient.
• The key to compliance is the timely review of contracts, internal controls and administrative processes in order to minimise penalty risks.
• The reintroduction of the advertising tax is not merely a technical tax issue: it will also affect the operation of the media market, advertisers and advertising agencies.

Historical background of the advertising tax – disputes, legal proceedings, suspension

The suspension of the advertising tax began on 1 July 2019, after the European Commission classified certain elements of the regulation as unlawful state aid. The legal dispute ultimately confirmed the Hungarian position: in 2021, the Court of Justice of the European Union also ruled that the Hungarian advertising tax is in line with EU law. Nevertheless, the government extended the suspension year by year.

However, the autumn tax package of 2025 marked a turning point: the suspension was extended by only half a year, effectively signalling that from 1 July 2026 the advertising tax and all related administrative obligations will return.

Who is subject to the tax? Both publishers and advertisers are affected

Under the current regulation, the suspension expires on 30 June 2026, and from 1 July 2026 the advertising tax will again become applicable. The return therefore takes place mid-year, which always creates additional administrative burden for businesses, as internal processes must be established during the year.

The advertising tax defines two main categories of taxpayers:

Publishers of advertisements: media service providers, publishers of press products, operators of outdoor advertising media and Hungarian-language online platforms.

Advertisers: they become taxpayers if their monthly advertising expenditure exceeds HUF 2.5 million and they do not possess a declaration from the publisher confirming that the tax has been paid.

The absence of the declaration does not automatically result in a tax liability; the advertiser does not become a taxpayer if

• the publisher is included in the register published on the website of the Hungarian tax authority (NAV),
• or if the advertiser can prove that it has requested the declaration, has not received it within 10 working days, and has reported this fact to the NAV.

What qualifies as advertising tax-liable activity?

The advertising tax applies exclusively to advertising publication for consideration; own-purpose advertising is not subject to tax. The regulation covers a wide range of appearances, from television and radio advertisements through press products and outdoor surfaces to advertisements displayed on vehicles, real estate, printed materials and online platforms.

Tax base and rate of the advertising tax

For publishers, the tax base is the annual net revenue derived from advertising publication.

For publishers, the tax rate is uniformly 7.5%, while the first HUF 100 million of the tax base is tax-exempt. This exemption qualifies as de minimis aid, which must be recorded and taken into account by the company in accordance with the relevant EU rules. The HUF 100 million threshold may fully exempt a significant proportion of smaller media companies from taxation, while for larger players it results in a meaningful tax burden.

It is important that where the publisher operates through a related-party advertising sales agency, special rules must be applied when determining the tax base.

If advertisers cannot rely on any exemption (publisher declaration, publisher listed on NAV website, notification of missing declaration to the NAV), the tax liability arises when monthly advertising expenditure exceeds HUF 2.5 million. A 5% tax must be paid on the portion exceeding the HUF 2.5 million threshold. When determining the advertiser’s tax base, there is no annual proportionality, meaning that in the months following 1 July 2026 the full monthly expenditure must be considered. This rule may create additional burden particularly for companies carrying out high-volume, campaign-based advertising spending.

Publishers are required to declare and pay the advertising tax annually, by the last day of the fifth month following the tax year (for calendar-year taxpayers, this is 31 May). In addition, they must pay tax advances twice (for calendar-year taxpayers: 20 July and 20 October), and the obligation to top up advances remains in place by the 20th day of the last month of the tax year (for calendar-year taxpayers, December). The difference between advances paid and the annual tax must be settled together with the annual return.

Advertisers, by contrast, are subject to monthly filing obligations: the return must be submitted and the tax paid by the 20th day of the month following the reporting period (this practically coincides with the deadline for monthly VAT returns). This more frequent filing obligation may impose a significant administrative burden on companies handling a large number of advertising invoices or working with multiple publishers.

Changes in penalty rules – more lenient, but still strict

The penalty rules related to the advertising tax have undergone significant changes in recent years, partly following the judgment of the Court of Justice of the European Union in case C-482/18 (Google Ireland). The previous sanctions, which could reach up to HUF 1 billion, were considered disproportionate, particularly for foreign service providers, therefore the legislator introduced a gradual, multi-stage penalty system. The essence of the new regulation is that default penalties should only be applied as a last resort and must in all cases be preceded by a call from the tax authority.

Publishers not yet registered with the NAV must register within 30 days of commencing advertising publication activities using the appropriate form. If they fail to comply, the tax authority first issues a notice with a 15-day deadline. If the notice remains ineffective, the NAV may impose a default penalty of up to HUF 10 million, followed by repeated notices. Each further failure may result in an additional penalty of up to HUF 10 million. An important mitigation is that if the taxpayer complies upon notice, the most recent penalty must be waived and earlier penalties may be reduced.

In case of failure to provide the declaration, a similar logic applies, but with different penalty amounts. If the publisher fails to provide the advertising tax declaration to the advertiser, the NAV first calls for its completion and warns that a penalty of HUF 500,000 will be imposed in case of non-compliance. If the obligation is repeatedly not fulfilled for the same advertiser and not remedied within the deadline set by the NAV, the penalty increases to HUF 10 million, which doubles with each further missed deadline. Here too, fairness applies: if the taxpayer complies, the most recent penalty is waived and earlier penalties may be reduced.

If the filing obligation is not fulfilled, the consequence differs: the NAV does not impose a penalty initially but initiates a tax audit and determines the tax by estimation. This may be particularly disadvantageous, as the tax authority determines the tax base and payable tax based on available information, typically using a conservative approach.

Overall, the new penalty regime is more lenient and proportionate than the previous system, but it still poses a significant risk for those who do not pay sufficient attention to registration, declaration and filing obligations. With the return of the advertising tax, it is therefore particularly important to review declaration management processes, contractual documentation and the administration of advertising expenditures.

Practical steps in spring 2026

Due to the return of the advertising tax on 1 July 2026, companies should begin preparations already in the spring period, particularly because the tax enters into force mid-year, which always entails additional administrative burden and interpretational issues.

Review of contracts: companies should review advertising expenditures, contracts with advertising agencies and media partners, as well as internal processes for requesting and managing declarations. The advertiser’s tax liability arises only in the absence of a valid declaration from the publisher, therefore proper declaration management is critical.

Separation of complex services: particular attention should be paid to complex services that may include multiple elements (e.g. creative services, media buying, production, consulting). Companies must determine which parts qualify as advertising publication and which do not fall under the scope of the advertising tax. The separation must be properly documented, as the NAV may examine whether the tax base has been determined lawfully during an audit.

Establishment of internal controls: companies should review their administrative processes: who requests declarations, who verifies their existence, how advertising invoices are recorded, and what internal controls ensure that advertiser tax liability does not remain hidden. The return of the advertising tax may require the designation of responsibilities and the formalisation of processes.

The return of the advertising tax imposes a significant administrative burden on market participants, but timely preparation can minimise financial and legal risks. Should the above raise your interest, the prepared experts of Grant Thornton are at your and your company’s disposal.

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This newsletter has been prepared based on information available on the date of publication and is intended for general information purposes only; it does not constitute personalised tax advice in any respect and does not replace such advice.