Retail tax in Hungary: highlight and warnings

Amendments in the retail tax liabilities for Hungary

As of January 1^st, 2025, the retail tax liability rules were amended in Hungary. The main change was the extension of the tax liability to platform operators, which got a significant focus in news.

However, some more items were not highlighted before, which seems to be minor changes with tremendous impact! Not only for platform operators!

There have been further changes in the method of determining the tax base for retail traders (both online and offline) – especially for those foreign entities engaging in the retail activities in Hungary without having a branch office there. Within this, not only the net revenue from sales realized in Hungary, but also the total (i.e. global) revenue (sales realized in Hungary and sales realized abroad) serve as the basis of the tax calculation with a subsequent reduction of the tax calculated for the revenue realized abroad. Practically speaking that means the portion of sales attributable to Hungary will be taxed at an effective tax rate higher than before (regardless of the fact that the tax base itself finally remains unchanged).

Moreover, please also note that there have been certain additional amendments regarding the tax-increasing items of the tax base. The taxable amount now also include:

• the turnover from the service provided by the taxable person, in the context of the marketing of goods purchased for the purpose of retail sale (to the manufacturer or distributor of the goods), and the amount of income from the discount granted to the taxable person by the supplier of such goods for the purpose of a retail sale;
• delivery costs charged to the buyer in the invoice made out by the retailer on the sale.

If a retail or platform operator accepts discounts from subcontractors, provides them with marketing or other kind of sales support services, or even passes on delivery costs to buyers, these additional items must also be included in the tax calculation.

Tax table for retail tax in Hungary 

Please also find here the tax table (tax brackets for 2025):

Tax advance payment obligation for retail tax in Hungary

Please note that the final tax payment liability for FY2025 is due by the end of May 2026. However, tax advances are required by the 20^th of July, and the 20^th of October 2025. Moreover, even additional mid-year obligations may incur for tax subject failed to get registered.

Consequences for online and offline shops, retail and e-commerce in Hungary

Potentially more of the above rules may practically impact businesses engaged in Hungarian online or offline retail activity.

Failure to register or calculate the tax / tax advances incorrectly may result in significant administrative and tax penalties (50%-200%).

LeitnerLeitner is pleased to offer its assistance to all potentially affected Clients. We assist with tax calculations, optimization plannings, and if required, with ruling requests or consultations with the Hungarian tax and financial authorities.

In case of any questions, please do not hesitate to contact our team!