Government Presses Ahead with Controversial Sectoral Taxation Policy through the Introduction of an Advertisement Tax

This note addresses the new advertising tax that was introduced with effect from 15 August 2014 in continuation of a long-term government commitment to a series of sectoral special taxes. In this context, Hungary has already faced criticism, including by the ECJ. This new tax applies not only to companies providing advertising services, but also – via a kind of reverse charge procedure – to absorbing companies, including foreign-based companies.