More information on real-time reporting in Hungary
Last 1 July the Hungarian authorities published more information about the new real-time reporting requirement to be introduced as from 1 July 2018.
This obligation was recently postponed for 12 months to allow businesses more time to adapt their ERP system.
What is real-time reporting?
As from July next year, all invoices will need to be reported within 24 hours from the moment they are issued. It is not required to receive pre-approval from the tax authorities to issue the invoice, however, the reporting must be done automatically from the ERP system used to issue and book every invoice. Invoice requirements will not change.
In Hungary, it is already mandatory to report the type of ERP system used by each taxpayer. As from next year, it will no longer be possible to use Microsoft Excel to keep your accounting books, as the system must be able to send data automatically to the authorities.
The new real-time reporting obligation also applies to non-established companies who are only VAT registered in Hungary.
Content and data transmission
Not all invoices need to be reported. Only those with a VAT amount exceeding 100,000 HUF (around €320).
The connection with the authorities server will be done via an electronic protocol allowed by the Hungarian authorities. The protocol selected by each taxpayer must be communicated beforehand. We expect the testing platform to be published in the coming months so businesses can start testing their data transmission.
What are the penalties?
Regarding penalties, missing one invoice may trigger a maximum penalty of HUF 500,000 (circa. €1700). There are no guidelines published on the application of this penalties, nor on the possible maximum amount in case multiple invoices are missed.
Next steps
If you are VAT registered in Hungary, you should start reviewing the data available in your system to make sure that all data requirements as from July 2018 are met. Your SAF-T files submitted to the authorities on a periodic basis will already include part of the data, hence it is recommended to take these files as the starting point to comply with next year´s obligation.
Please send us an email to get help understanding local requirements and planning your IT configuration to comply with Hungarian real-time reporting obligations.