Hungarian real-time reporting to be required on B2C sales

The Hungarian authorities announced important changes on the current real-time reporting data requirement

The changes announced impact both, the scope of this tax technology obligation and the content of the files to be submitted to the Hungarian tax authorities. The main and most controversial update is the requirement, after 1 January 2021, for B2C sales to be reported in real-time.

Changes on the scope of Hungarian real-time reporting

B2B sales will be subject to real-time reporting obligations in Hungary irrespective of their value. The current rules exclude sales of goods below 100,000 HUF (around 300 €). Intra-community sales and domestic reverse charge sales will continue to be excluded from this obligation.

On a second stage, as from 1 January 2021, B2C sales should be reported in real-time to the Hungarian tax authorities. These sales will not be included when they are part of the Mini-One Stop Shop (MOSS) scheme foreseen for distance sales of goods as from 2021.

Although domestic purchases are not reported in real-time, as from 1 July 2020, all domestic purchases should be reported in the local listing of sales and purchases. This is a periodic reporting obligation equivalent to SAF-T returns or control reports, as it includes details of all domestic purchases made in the country.

Changes on XML data and tax authorities' tool

In addition to the changes on the scope of this obligation, Hungarian tax authorities introduced changes to the way invoices are reported in the system and the options available in their database.

Going forward, it will be possible to download all data reported by the counterparties of each transaction. This option will allow businesses to reconcile their data with data reported by other taxpayers, hence minimizing the risk of questions from the tax authorities due to discrepancies.

The new system will also allow easier reporting of credit notes and changes to existing invoices, as well as cancelling invoices previously reported .

The new 2.0 XML schema will include changes in the structure and data required. For example, the reporting software used, the date of delivery and conversion into HUF of all amounts in the XML should be included in the new schema.

Further information about the 2.0 XML schema can be found in the website of the Hungarian tax authorities.

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