As of 1 July 2018 all taxpayers are required to report to the Hungarian tax authority certain data regarding invoices that are issued by invoicing software and have a VAT content of at least HUF 100,000. Such reports will have to be made electronically, through an online connection, using a specific XML file format.

According to the regulation, taxpayers must report electronically at least the mandatory data prescribed by the VAT Act for invoices that are issued by invoicing software. Such reports must be made immediately upon invoicing, or within 24 hours at the latest, and use a predefined file format to report the data through an electronic data processing method specifically developed for this purpose.

Starting from 1 July 2017, taxpayers have a one-year grace period to implement online data reporting, to allow them sufficient time to get acquainted with the technical system requirements and comply with the new obligation. The tax authority’s IT system for online data reporting (“KOBAK”) is now available for testing.

Considering that the new obligation will create an administrative burden for taxpayers, PwC’s experts have developed an application to support online data reporting, based on the new system’s operational features (i.e. xml structure of the required information), which facilitates automated compliance with the new obligation.

PwC Online Reporting Tool

The tool is a customised software application which automatically generates the correct XML file, with the content and structure prescribed by the laws, based on invoice data exported from your ERP or invoicing system.

After generating the required XML file, the application automatically communicates with the tax authority’s KOBAK system to submit the required data and receive and archive the tax authority’s response (which is expected to be a unique ID for each invoice reported).

The application can handle invoice corrections in the course of online data reporting and perform any reconciliation required (e.g. to avoid double reporting). It also allows invoice data to be reported at any time during the day, with a frequency suited to your needs.

The application will also register any KOBAK system outages, when data reporting and receipt is not possible.

If you have any questions in that regard, please do not hesitate to contact Gabor Farkas, Senior Manager PwC Hungary on + 36 30 527 59 19 or gabor.farkas@hu.pwc.com.

Bildquelle: Lars Paege  / pixelio.de