What is the current regulation?
- Every invoicing software - online or offline - has to be registered at the tax authority, and when a company starts using such a software, it has to inform the tax authority about it.
- If a company issues or receives an invoice that includes VAT of at least HUF 1 million, it has to be reported separate attached to the next VAT return. In addition, if the total value of invoices received from one partner in the reporting period achieve this limit, the same reporting rule applies.
Automatic and instant data transmission is requested about certain invoices to the tax authority.
Which invoices are subject to the data transmission requirements?
All the invoices issued to another VAT taxpayer (mostly Hungarian and locally registered foreign companies) if the value of VAT on the invoice achieves HUF 100,000.
It means that the reporting limit drops from 1 million to 100,000 (VAT).
Both pdf and e-invoices have to be reported.
What about the manually written invoices?
Invoices made by hand have to be reported online but manually within 1 to 5 days depending on the amount of VAT.
How should the data be reported?
The invoicing software has to have an automatic function to transmit the requested data in xml format, as defined by the tax authority.
Only these invoicing software can be used from 1 July.
Live internet connection is necessary for the instant data transmission.
Should online cash registers be also updated?
No, the data transmission of the online cash registers is sufficient.
Is there any feedback about the data transmission?
The system of the tax authority uses tokens to identify the data transmission and sends a reply message that can be
Good: data accepted
Warning: user interaction required to accept the data
Error: data not accepted
Can we report all the invoices?
Yes, the software can be set to report all the issued invoices, but it currently not required.
Will the monthly or quarterly VAT return change?
There is no more separate report in the VAT return about these sales invoices. However the report about the purchase invoices remain, but the limit is HUF 100,000 VAT.
Should we report credit notes and other special invoices as well?
Credit notes and correction invoices are also subject to the new rule if the original invoice was, or it will be with the correction.
What can we do to prepare for the changes?
There are 3 basic solutions to fulfil the new requirements:
- Enable the current software for the data transmission. The specifications are published by the tax authority.
- Use an online invoicing software. There are several providers, even in English, and since they work online, lack of internet cannot be an obstacle of the data transmission.
- The tax authority will also operate an online invoicing platform freely available for all the companies. Using this feature will definitely fulfil the reporting requirements.
In case of further questions, contact your Accountant or turn to us. We will do our best to satisfy your curiosity.