Hungary will Launch the New eVAT System

Hungary will launch the eVAT system by 1 January 2024, the new VAT reporting portal. This new system is set to become available to all VAT-registered taxpayers in Hungary, both established and non-established, it will not be mandatory during 2024, and possibly until at least 2026. This development aims to meet taxpayer’s needs, facilitating the compliance of their legal obligations and reducing the administrative burden.

During this transition period, companies have the opportunity to register on the new eVAT platform and test its functionalities while continuing to use the existing ANYK system to submit VAT data to the Hungarian tax authorities. The coexistence of the two systems allows taxpayers to adapt at their own pace. However, after the designated date, the eVAT system will become the only platform available for submitting VAT returns to Hungarian tax authorities.

Key Features of the eVAT System

The new Hungarian eVAT system portal presents several advantages for users:

• Access to Tax Authority Data: One of the standout features of the eVAT system is that taxpayers will have direct access to tax authority data. This includes information on received and issued invoices, customs procedures, and more.
• Tax Codes and VAT Analytics: The use of tax codes and VAT analytics lays the foundation for a more efficient VAT declaration process, shifting towards automatic data processing and error checking integrated into the workflow.

1. Automated Tax Coding: eVAT offers automatic and standardized tax coding of evidence-level data, aligning individual items with specific return lines. This automation streamlines the declaration process.
2. Extensive Validation: The system provides comprehensive validation checks, going beyond what traditional form-filling applications offer. It identifies deviations and potential issues, helping taxpayers correct their submissions.

• User Rules: eVAT enables users to create rules for mass decision-making based on source data, reducing manual tasks.

All the data must be submitted in XML format, although the exact structure is yet to be finalized. The Hungarian portal will automatically generate draft returns based on the XML submitted. Taxpayers will need to confirm or resubmit corrected data.

As the E-VAT system is still under development, the full scope of its functionality and specific XML file requirements are not entirely known. Updates and details are regularly published by the Hungarian tax authorities.