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home / Hungarian real-time invoice reporting as from July 2018
On 1 July 2018 comes into force the Hungarian real-time invoice reporting obligation. The new obligation will require that any taxpayer registered for VAT purposes in Hungary, issuing an invoice with a VAT amount greater than or equal to report the invoice data automatically, electronically, immediately and without human intervention to the Hungarian tax authority. Not complying with this obligation will carry a fixed penalty of up to HUF 500,00 (EUR 1,700 approx.) per invoice.
Hungary is the second country in Europe requiring real-time reporting of tax data, following Spain which was the first one introducing a system for real-time VAT ledgers reporting called ‘Suministro Inmediato de Información – SII’. Several jurisdictions like Poland, Portugal or the Czech Republic have introduced the SAF-T requirement on a periodic basis, but none of them has requested real-time information yet.
The so-called ‘online számla’ consists of the obligation to report the invoices issued electronically and immediately (at the moment of issuance) if the VAT charged is at least of HUF 100,000. This new obligation will require companies to adapt their invoicing and ERP systems in order to produce the XML file that must be transmitted to the Hungarian tax authorities’ website without human intervention.
However, the taxpayer may also decide to disregard the VAT threshold and provide data for all his domestic invoices issued, even though the invoice contains or not any VAT due and the corresponding VAT amount. Hungarian tax authorities also accept voluntarily invoice data provided.
Hungarian real-time invoice reporting is mandatory for (i) all taxpayers registered for VAT purposes in Hungary, regardless whether they are established or not in Hungary, who issue an invoice with a VAT amount of HUF 100,000 or more; (ii) those distance sellers who carry out B2B supplies (online sales business to business performed to Hungarian taxpayers) and charge VAT for HUF 100,000 or more.
Therefore, a taxable person is NOT required to report any information in the following scenarios:
The content of the XML required by the tax authorities for the Hungarian real-time invoice reporting is, at least, the mandatory invoice data as stipulated in the Hungarian VAT Act. This would include at least the following data:
Please send us an email if you would like to receive the official XML format required by the tax authorities.
You will need to send your invoice data in XML via APIrest to the Hungarian tax authorities. This communication will send back a token that will accept the data and the submission will be confirmed. The requirement for a token transmission will oblige most foreign companies with an ERP abroad to use a bridge software between their ERP and the tax authorities.
Since 2014 a taxable person registered for VAT purposes in Hungary who issues invoices is required to use an invoicing software which strictly complies with the following requirements, among others:
Together with our local delegate, Marosa has developed a solution for the transmission and submission of your XML files. This solution has been fully tested and is now operational.
Please contact us if you would like to receive a demo of our solution for the Hungarian real-time invoice reporting.
If you have not yet started working on the Hungarian real-time invoice reporting, you must take the following steps as soon as possible to ensure that you are compliant with the new obligation:
Given the urgency, we suggest starting the process within the first two weeks of March 2018 at the latest.
Please contact us so we can send you an invitation for a conference call to create an Action plan and ensure that you are compliant by 1 July 2018.
Failure to report data according to any of requirements described above (electronically, automatically, immediately and with no human transaction) will trigger a default penalty of up to HUF 500,000 (EUR 1,700 approx.) per invoice. Additional penalties would apply for non-compliance with the invoicing software requirements.
Late, incomplete, erroneous or false data reporting will trigger a default penalty for each invoice affected by the failure of up to HUF 500,000 (HUF 200,000 for private individual taxpayers).
More information about the Hungarian real-time invoice reporting can be found on the website of the tax authorities.