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Real-Time Invoice Reporting in Hungary: Changes in Online Data Reporting Obligation
Expansion of the Range of Invoices Subject to the Reporting Obligation
Under the new rules, data must also be provided on invoices issued to non-Hungarian taxable persons, as the obligation to provide data extends to all invoices to which the invoicing rules of the Hungarian VAT Act apply. This means that as of 4 January 2021, invoices issued to non-taxable persons or organisations (domestic or foreign), as well as invoices issued domestically to non-resident taxpayers (i.e., to taxable persons established in another Member State or a third country) are also subject to the reporting obligation. The extension of the reporting obligation also affects foreign companies with VAT registration in Hungary. From now on, they will be required to report almost all of their invoices, explain the Ecovis experts.
NAV Online 3.0 Online Invoice Reporting System Introduced
Alongside the extension of the reporting obligation, the tax authority has introduced NAV Online 3.0, the latest version of the Hungarian online invoice reporting system, which modifies the framework for fulfilling reporting obligation in line with legal changes and supports invoice processing. It has also been expanded with a completely new feature, the support for electronic invoicing. Supplier invoice data reported by partners can also be downloaded from the online invoice reporting system.
Failure to Fulfil the Data Reporting Obligation
The invoice data issued by the electronic invoicing program must be transmitted electronically to the online invoice reporting system immediately upon issuance of the invoice, without human intervention, in XML format in the manner and data structure specified by the tax authority.
If a company fails to comply with the online reporting obligation, a fine up to HUF 500,000 (approx. EUR 1,400) may be imposed for each invoice omitted from the report.
Taking into account the difficulties caused by the new wave of COVID-19, the Hungarian tax authority has granted a sanction-free period for non-compliance with this obligation until 31 March 2021. The Ecovis consultants recommend that all taxpayers use this period to prepare their invoicing systems for the extended data reporting obligation.
For further information please contact:
Dr. László Kelemen, Tax Partner, ECOVIS TAX SOLUTION HUNGARY, Budapest, Hungary
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