Legal Obligations for Online Businesses in Hungary

Introduction

The rapid growth of e-commerce in Hungary has brought increased regulatory attention to the legal obligations of online businesses. Whether you operate a webshop, a SaaS platform, a marketplace, or a digital services company, compliance with Hungarian and EU law is essential. The principal legal sources include Act CVIII of 2001 on Electronic Commerce (Eker. tv.), Act CLV of 1997 on Consumer Protection (Fgytv.), the GDPR, Government Decree 45/2014 on Distance Contracts (45/2014. Korm. rendelet), and the EU Digital Services Act (Regulation (EU) 2022/2065, “DSA”).

This article outlines the key obligations that online businesses must satisfy in Hungary as of 2026.

Registration and Identification Requirements

Business Registration

Every online business operating in Hungary must be duly registered as a sole proprietorship (egyéni vállalkozás), limited liability company (Kft.), or another legal form. Operating a business without proper registration is a regulatory offence and may result in fines.

Information Duty (Tájékoztatási kötelezettség)

Under the Electronic Commerce Act, every website or webshop must clearly and prominently display:

• The name and legal form of the business (or the trader’s name for sole proprietors)
• Registered seat and contact details (email, phone, postal address)
• Company registration number (cégjegyzékszám) or sole proprietor registration number
• Tax number (adószám)
• The name and contact details of the hosting provider
• Where applicable, the professional licensing authority and licence number
• Any relevant codes of conduct the business adheres to

This information must be accessible from every page—typically via the footer, an “Imprint” (Impresszum) page, or a dedicated legal information section.

Terms and Conditions (ÁSZF)

Why Are Terms and Conditions Essential?

General Terms and Conditions (Általános Szerződési Feltételek, “ÁSZF”) form the contractual framework between the online business and its customers. While not legally mandated as a standalone document, failing to provide clear terms exposes the business to disputes, regulatory action, and consumer complaints.

Content Requirements

A well-drafted ÁSZF for an online business should include:

• Scope: Which products/services are covered and who may use the platform
• Ordering and contract formation: The steps of placing an order, confirmation, and the moment at which a binding contract is formed
• Pricing and payment: Currency, applicable taxes (VAT), accepted payment methods, and any additional charges (shipping, handling)
• Delivery: Timeframes, methods, geographical coverage, and responsibility for delivery
• Right of withdrawal: The consumer’s right to withdraw from the contract within 14 days (see below)
• Warranty and guarantee: Statutory warranty (kellékszavatosság), product warranty (termékszavatosság), and any voluntary guarantees (jótállás)
• Complaint handling: How customers can submit complaints and the process for resolving them
• Liability limitations: Permitted exclusions and limitations of liability (subject to consumer protection rules)
• Dispute resolution: Available forums, including the consumer arbitration board (békéltető testület)
• Data protection: Reference to the privacy policy and applicable GDPR provisions
• Governing law and jurisdiction

Unfair Terms

Consumer protection law prohibits unfair contract terms (tisztességtelen szerződési feltételek). A term is unfair if it causes a significant imbalance in the parties’ rights and obligations to the detriment of the consumer. Courts may declare unfair terms void, and the consumer protection authority (Fogyasztóvédelmi Hatóság) may impose fines on businesses that use them.

Consumer Protection in E-Commerce

Right of Withdrawal (Elállási jog)

Under Government Decree 45/2014 (implementing the EU Consumer Rights Directive), consumers who purchase goods or services through a distance contract (online, by phone, or by post) have the right to withdraw from the contract within 14 calendar days without providing a reason.

Key rules:

• The 14-day period starts from the date the consumer receives the goods (or, for services, from the date of the contract).
• The consumer must notify the business of their withdrawal using a clear statement (a model withdrawal form may be provided by the business).
• The business must refund all payments, including standard delivery costs, within 14 days of receiving the withdrawal notice.
• The consumer must return the goods within 14 days of notifying the withdrawal—unless the business offers to collect them.
• The cost of returning the goods may be borne by the consumer, if the business informed the consumer of this obligation before the purchase.

Exceptions to the Right of Withdrawal

The right does not apply to certain categories of contracts, including:

• Sealed goods that are not suitable for return due to health or hygiene reasons (if unsealed)
• Goods made to the consumer’s specifications or clearly personalised
• Sealed audio or video recordings or software (if unsealed)
• Newspapers, periodicals, or magazines (except subscriptions)
• Services fully performed with the consumer’s prior express consent

Pre-Contractual Information

Before the consumer places an order, the business must provide clear and comprehensible information about:

• The main characteristics of the goods or services
• The total price, including taxes and delivery charges
• Payment, delivery, and performance arrangements
• The right of withdrawal (or its absence, if an exception applies)
• Warranty and after-sales service conditions
• The duration of the contract and termination conditions (for subscriptions)

Electronic Invoicing and VAT

E-Invoicing

Hungarian law requires businesses to issue invoices for every sale. For online businesses, electronic invoices are fully accepted, provided they meet the requirements of Act CXXVII of 2007 on Value Added Tax (ÁFA törvény). Since 2024, all invoices must also be reported to the tax authority in real time through the Online Invoice System (Online Számla rendszer) operated by NAV.

VAT on Digital Services

For B2C (business-to-consumer) sales of digital services (software, streaming, online courses, etc.) to customers in other EU Member States, the One Stop Shop (OSS) mechanism allows businesses to register for VAT in a single Member State and remit VAT at the rate applicable in the customer’s country. This significantly simplifies cross-border VAT compliance.

The Digital Services Act (DSA)

Applicability

The EU Digital Services Act, which became fully applicable in February 2024, introduces a harmonised framework of obligations for digital service providers, including online platforms, marketplaces, search engines, and hosting services. Hungarian businesses that provide these services must comply with the DSA in addition to national e-commerce law.

Key Obligations Under the DSA

• Transparency reporting: Regular publication of data on content moderation, government requests, and complaint handling
• Notice-and-action mechanisms: Clear procedures for third parties to flag illegal content, and obligations to act promptly on valid notices
• Internal complaint-handling: Users must have access to an effective internal process for challenging content moderation decisions
• Traceability of traders: Online marketplaces must verify and display the identity and contact details of traders offering goods or services through the platform
• Advertising transparency: Online platforms must clearly label advertisements and disclose the parameters used for targeting

Supervision and Enforcement

Hungary has designated the National Media and Infocommunications Authority (Nemzeti Média- és Hírközlési Hatóság, NMHH) as the Digital Services Coordinator responsible for supervising compliance with the DSA. The authority has the power to investigate, issue warnings, and impose fines.

Cookie Compliance and Privacy

Online businesses must comply with both the GDPR and the ePrivacy Directive (as transposed into Hungarian law) with respect to the use of cookies and similar tracking technologies:

• Strictly necessary cookies (e.g., session cookies, shopping cart cookies) may be placed without consent.
• Analytics, marketing, and third-party cookies require the user’s informed, specific, and freely given consent before being placed.
• A cookie consent banner must be displayed, offering clear options to accept or reject non-essential cookies.
• Opt-out must be as easy as opt-in, and the business must respect the user’s choice.

Dispute Resolution

Consumer Arbitration Boards (Békéltető testület)

Before resorting to litigation, consumers may submit complaints to a regional consumer arbitration board. Online businesses must:

• Inform consumers about the availability of these boards in their terms and conditions and on their website
• Cooperate with arbitration proceedings if a complaint is filed (mandatory cooperation was strengthened in 2023)
• Display a link to the EU Online Dispute Resolution (ODR) platform (ec.europa.eu/consumers/odr) on their website

Regulatory Complaints

Consumers may also file complaints with the consumer protection authority (Fogyasztóvédelmi Hatóság), which has the power to conduct inspections, issue fines, and order corrective measures.

Practical Recommendations

• Implement a legally compliant ÁSZF reviewed by a lawyer—template terms are rarely sufficient.
• Ensure your website displays all mandatory information (imprint, privacy policy, cookie notice, withdrawal information).
• Set up a professional complaint-handling system—this is both a legal requirement and good business practice.
• Register for the Online Invoice System and ensure real-time invoice reporting.
• Review DSA compliance if you operate a platform, marketplace, or hosting service.
• Train your team on consumer rights, data protection, and complaint handling.
• Monitor regulatory updates: Hungarian and EU e-commerce law continues to evolve rapidly.

Conclusion

Operating an online business in Hungary requires careful attention to a complex and evolving regulatory framework spanning e-commerce law, consumer protection, data privacy, tax compliance, and the Digital Services Act. While the obligations are substantial, proper legal structuring and proactive compliance not only reduce risk but also enhance customer trust and competitive advantage.

This article is for informational purposes only and does not constitute legal advice. For advice tailored to your online business, please contact our office.