Hungary introduces live VAT invoice reporting as of July 2018

Starting with 1 July 2018, live reporting is mandatory for Hungarian VAT registered entities issuing invoices to another entity VAT registered in Hungary with an (output) VAT amount exceeding HUF 100,000 (approx. EUR 320). This also includes businesses established outside Hungary but registered for VAT in Hungary. The reporting to the Hungarian Tax Authority (HTA) has to be real-time, i.e. the 24-hours timeframe previously proposed was not implemented.

What invoices are affected?

  • Only supply invoices are affected. This means no need to report purchase invoices.
  • Only domestic supply invoices are affected. This means no need to report, for example, EU sales or exports.
  • Only B2B invoices are affected. Supplies to private individuals do not need to be reported.
  • Only supplies with chargeable VAT are affected. No need to report exempt supplies, zero-rated supplies, supplies with reverse charge, etc.
  • Distinction must be made between the original invoice and modifying invoice (e.g. debit note, credit note, cancellation invoice).
  • A link between the original invoice and all its modification must be created. Debit/credit notes or cancellation invoices must contain reference number of the original invoice.
  • Debit/credit notes that modify affected invoices are also reportable.
  • Invoices cancelling affected invoice are also reportable.
  • If as a result of modification of the invoice the VAT exceeds HUF 100,000, the modification invoice and all subsequent modifications will become reportable.

The reporting

must be electronic via the invoicing system, or via an integrated module of the invoicing system. Fines for non-compliance may be as high as
HUF 500,000 (approx. EUR 1,600) per invoice. Taxpayers subject to live reporting will be exempt from providing the regular domestic recapitulative filing for sales invoices. However, reporting on purchase invoices will still be required with a lower reporting threshold of HUF 100,000 (approx. EUR 320) input VAT.

To Dos.

Hungarian VAT registered entities will need to make their invoicing software capable of real-time data transfer by 1 July 2018 at the latest. Should you need assistance, our Deloitte partners in Hungary have developed an online solution (VATOnline) and can assist you with the reporting.

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Barbara Behrendt-Krüglstein

Barbara Behrendt-Krüglstein

Manager | Deloitte Tax Telefon: +43 1 537 00 7112 Mail: bbehrendt-krueglstein@deloitte.at

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