Hungary to introduce retail tax for online platform operators on 1 January 2025

Hungary

Following the increase in the tax rates of the retail tax within the framework of the extra-profit taxes in 2022, Hungary is now extending the scope of taxable persons obliged to pay retail tax.

As of 1 January 2025, retail tax will not be payable by retailers doing business via online platforms. Instead, these taxes will be paid by the operators of the platform connected to the salesperson and the user. The legislation defines platforms by the EU’s DAC7 definition. Retailers using the platforms are required to provide data on their platform sales to the tax authority.

Both foreign and domestic online marketplace operators are subject to the new tax obligation. The tax, however, is only due on income from sales of goods to Hungarian customers. (The turnover from the goods handed over to the customers abroad is exempt from the retail tax obligation).

If the platform operator is also selling its own goods on the platform or on another platform, the tax base from the two activities should be aggregated.

The turnover is taxed at progressive rates under the extra-profit regime from 0% for the tax base of a maximum of HUF 500 million (EUR 1.2 million) up to 4.1% for the tax base exceeding HUF 100 billion (EUR 243 million).

Taxpayers that now become subject to the retail tax as platform operators must register with the tax authority before 15 January 2025.

For more information on taxation in Hungary and Hungary's tax changes for 2025, contact your regular CMS advisor or local CMS experts.