Ready for real-time invoice data reporting in Hungary?
Regulatory update 3 minute read

Ready for real-time invoice data reporting in Hungary?

25 June 2018

Time is running out for VAT-registered companies in Hungary to set up and test their systems ahead of the July deadline.

From 1 July 2018, all VAT-registered companies in Hungary are required to report their sales invoice data to the local tax authority in real-time. The reporting will be carried out automatically, via the Hungarian tax authority’s online invoicing portal.

Are your reporting systems compatible? What do you need to do to prepare for the change? Read on to find out – and learn more about how TMF Hungary’s VAT experts can help.

Real-time data transfer – why is it happening?

The Hungarian tax authority announced the move to the real-time transferring of sales invoicing data in order to further ‘whiten’ the economy by discouraging tax frauds. Data of sales invoices with a VAT amount of HUF 100,000 (approximately €340) or more, issued between domestic VAT-registered companies should be disclosed in a pre-defined format. Invoices issued with invoicing software should be reported automatically without delay, while data from paper-based invoices should be manually uploaded to the tax authority’s invoicing portal (within one to five days, depending on VAT amount charged). To eliminate the number of manual invoices, a free online invoicing tool is set to be developed by the tax authority.

It should be noted that Hungary’s previous sales invoice data reporting obligation (in effect since 1 January 2016) still applies, despite this new requirement. VAT-registered companies should be able to present this information to the authority when, or if, requested.

What do I need to do?

VAT-registered companies in Hungary should be checking and adjusting their invoicing software now, to ensure it is capable of immediate, real-time data transfer without manual intervention.

dedicated site has been open for testing the compliance of invoicing software upgrades. And the Hungarian Tax Authority has now published the final web interface of the online invoice reporting portal. You need to register your company on the web interface and create primary, secondary and technical users in the system. Depending on your individual IT infrastructure, this process may involve purchasing or upgrading software and systems. Companies should ensure they leave sufficient time for testing and data reviews, to minimise the instances of incorrect or missed reporting after the go-live date.

Registration in the live/final web interface is mandated for those taxpayers who have already registered themselves in the test environment. User credentials for the test environment don't need to be revoked, and it may be kept open for further testing at a later stage.

Since originally publishing this article, the testing environment has been extended with a trial version of the free manual online invoicing tool which may be a solution for taxpayers who currently issue their invoices manually, without any ERP/invoicing software.

A monitoring process should be set up to ensure that warning and error messages are identified and rectified.

Don’t have time for a major IT development? TMF Hungary’s invoicing software is fully compliant. We can take on your venture’s invoicing activities – temporarily or permanently - so you can remain focussed on your core business. We can also connect you with our trusted partner for an optimal IT solution.

What if I don’t comply?

Companies that fail to meet the new real-time data reporting obligation risk a penalty of up to HUF 500,000 (approximately €1,700) per invoice.

Talk to us

Our VAT professionals in Hungary can answer your questions and assist your teams in interpreting all requirements of the legislation.

We can also help you in everything from testing the online data transmission, to supporting your e-invoice data reporting longer term.

Need more information? Make an enquiry with us today.

Find out how our services help companies of all sizes to maintain focus on their core.

Written by

Sandor Karai

Head of Accounting - TMF Hungary

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