Have you sold outgrown children’s clothes on Vatera? Gotten rid of old furniture on Jófogás? Or regularly sell handmade products on Facebook? More and more private individuals use online marketplaces, but many are unaware of when and how they should pay taxes on these revenues. As NAV is increasingly scrutinizing these transactions, it is important to know the rules. Let’s look at the most important information!

In NAV’s Crosshairs: How Does the Tax Authority Investigate?

Do not be surprised if NAV starts to inquire about your online sales. The process often begins with a so-called compliance audit.

📚 Related article: Compliance audit process in detail: NTCA Tax Compliance Inspection →

During this, NAV will:

  • Analyze available data (e.g., previous PIT returns, possible customs declarations).
  • Request and check your bank account transactions.
  • Ask you to make a statement regarding the sales.

Important to know about compliance audits:

No tax difference assessment: At this stage, NAV cannot assess a tax deficiency.

Penalties may apply: If irregularities are found (e.g., undeclared activity), a default penalty may be imposed.

Proposal for a tax audit: If signs indicating a tax difference are found, this will be recorded in the minutes, and a tax audit may be proposed.

Options: In such a case, you can decide to:

  • Perform a self-revision and declare/pay the missing tax.
  • Await the tax audit and try to prove your case there.

What Constitutes Taxable Sale of Movable Property?

According to the PIT Act, movable property is anything that is not real estate (excluding currency, securities, etc.). The sale of movable property by a private individual constitutes a transfer of movable property, which generally generates income and is subject to taxation.

Two Main Categories: Private Sale vs. Economic Activity

From a tax perspective, a key question is whether our online sales constitute economic activity.

1. NOT Economic Activity (Typical Private Sale):

What falls into this category? When we sell our own, no longer used, superfluous personal belongings that we originally acquired not for resale purposes.

Example: Selling outgrown children’s clothes, old books, replaced technical items, old furniture.

Taxation: The general rules for movable property sales detailed below apply (income calculation, HUF 600k revenue and HUF 200k income thresholds). No tax number needs to be obtained.

2. Economic Activity:

What falls into this category? If the sale is business-like, regular, continuous, and aimed at achieving consideration. The key is intent and regularity.

Example: We collect or purchase used clothes or items specifically to resell them for profit. We regularly make and sell handmade products (e.g., jewelry, ceramics, decorations). We order new goods (even from abroad) and sell them online.

Consequences:

  • Obtaining a tax number is mandatory! This must be done before commencing the activity.
  • Taxation is according to the rules for self-employment (although the specific rules for movable property sales, e.g., the 600k/200k thresholds, may also apply here when determining income).
  • Social security contribution obligations may also arise on the income.
  • VAT liability may also arise. Important: Up to HUF 18 million in annual revenue, subjective tax exemption (AAM) can be chosen from 2025, but this must also be reported to NAV.

Who determines the classification? Assessing whether an activity is economic in nature is primarily the private individual’s responsibility. NAV examines all circumstances of the case (number and frequency of advertisements, nature and quantity of goods offered, acquisition sources, etc.).

Calculating Income

If taxable income arises (see thresholds below), it must be calculated:

Income = Revenue - Expenses

Revenue: Everything received for the sale (selling price, value of goods received in exchange).

Expenses (with proof!):

  • Acquisition cost: The amount for which the item sold was purchased (invoice, sales contract required!).
  • Value-enhancing investments: Verified renovation and repair costs incurred on the sold item.
  • Costs related to transfer: Verified advertising fees, shipping costs, etc.

Important: Expenses can only be accounted for up to the amount of the revenue (no loss can be shown).

What if there is no proof of the acquisition price?

This is common for used items. In such cases, the law simplifies:

Income = 25% of Revenue (i.e., 75% of revenue is deemed expense).

Key Thresholds: When is Taxation NOT Required?

Two important rules must be remembered, which can significantly simplify our lives:

RULE 1: The HUF 600,000 REVENUE Limit

  • If our total annual REVENUE (not income!) from all movable property sales does not exceed HUF 600,000, then we do NOT need to determine income, and thus no PIT payment obligation arises.
  • This rule applies even if our activity would otherwise qualify as economic activity!
  • But: If the revenue exceeds HUF 600,000 by even one forint, then income must be calculated for the entire revenue using the methods described above, and taxed thereafter (taking into account the HUF 200k income limit, see below). If this was an economic activity, a tax number is also required!

RULE 2: The HUF 200,000 INCOME Limit

  • This rule comes into effect if our annual revenue exceeded HUF 600,000, and we therefore had to calculate income.
  • If the calculated total annual INCOME (Revenue - Expenses) does not exceed HUF 200,000, then no PIT needs to be paid, and this income does not need to be declared in the annual PIT return.
  • If the income exceeds HUF 200,000:
    • The full income must be declared in the PIT return.
    • The tax rate is 15%.
    • But tax only needs to be paid on the portion of income above HUF 200,000. (In practice, this means that HUF 30,000 (200,000 * 15%) can be deducted from the calculated 15% tax).

Summarizing the above logic:

  1. Check your total annual revenue from movable property sales.
  2. If it is HUF 600,000 or below: No action required for PIT purposes.
  3. If it is above HUF 600,000: You must calculate your income (Revenue - Expenses or Revenue * 25%).
  4. Check your calculated total annual income.
  5. If it is HUF 200,000 or below: No action required for PIT purposes (no declaration, no payment).
  6. If it is above HUF 200,000: The full income must be declared, and 15% tax must be paid on the portion above HUF 200,000.
  7. Important: If the activity is economic in nature and the revenue exceeded HUF 600,000, a tax number must also be obtained (and there may be VAT/contribution implications).

Brief Aside: VAT and Customs for Goods Ordered from Abroad

If someone orders goods from abroad (either for personal use or for resale), it is important to know the rules valid from July 2021:

VAT: VAT must be paid on all products ordered from outside the EU, regardless of value (the EUR 22 exemption has been abolished). VAT on products purchased from within the EU is generally already included in the purchase price by the webshop.

Customs: Most products arriving from outside the EU are customs-free up to a value of EUR 150. Above this, customs duties must also be paid.

Customs clearance: A customs declaration must be submitted for all consignments containing goods entering the EU. This is usually handled by Magyar Posta or courier services (for a fee).

Uncertain? Seek Help in Time!

It is clear that the taxation of online sales can hide pitfalls, especially in the classification of “economic activity” and the correct application of thresholds.

Classification: If you are unsure whether your activity qualifies as economic activity, it is advisable to consult a tax expert.

In Case of NAV Audit: If NAV has already contacted you, or a compliance audit or tax audit has been initiated, professional assistance is especially important. We help in preparing statements, submitting self-revisions, choosing the method of taxation (e.g., subjective exemption) retroactively, and representing your interests before NAV to ensure the audit concludes with the most favorable outcome possible.

Do not wait until NAV knocks on your door or until you get into trouble due to a misinterpreted rule. Get informed, and if necessary, seek professional help!

This article is for informational purposes only and does not constitute the official legal opinion or legal position of Molnár and Márk Law Association applicable to individual cases, nor does it constitute tax advice. Molnár and Márk Law Association disclaims legal liability for the use of the contents of this article in individual cases.