The Hungarian online reporting is effective for invoices with the VAT content above HUF 100,000 issued after July, 1 2018. This online invoice reporting obligation will be subject to significant changes over the coming years.
The first wave of changes will come into force on April 1, 2020 with the new version of the invoice reporting interface (Online Invoice 2.0), which represents the first major upgrade to the Hungarian real-time reporting system. The changes relate both to the format of the server communication and to the invoice data. With this new version even more precise data have to be reported (e.g. delivery date rendered reportable even if not included on invoice, VAT amounts in HUF extended to the level of invoice line items, new index number introduced for credit/debit notes).
The system is already available for testing and the earliest deployment in the production environment is expected by February 2020. Detailed technical information in English can be found on this website: https://onlineszamla.nav.gov.hu/dokumentaciok
The next change is that the threshold of HUF 100,000 for the invoice data reporting will be ceased as of July 1, 2020. Thus, it will be required to provide data on all invoices issued to resident taxable persons for completed transactions within the country. Accordingly, the current HUF 100,000 threshold for the Domestic recapitulative statements to be submitted as part of the VAT return for incoming invoices will be abolished likewise. In addition, the scope of mandatory invoice issuance is expanding: companies will have to issue invoices for certain VAT exempt transactions.
As of January 1, 2021 the range of invoices to be reported will be further expanded, as the invoices issued to taxable persons on intra-Community and extra-Community transactions will have to be reported and – with a few exceptions – invoices issued to non-taxable persons as well.
In order to prepare for the reporting requirements, it is recommended that – if adopted -the necessary steps are taken to ensure compliance in a timely manner. It is worthwhile for Companies to review how they will be able to meet the new requirements in the coming years, bearing in mind that in the future, many changes and new requirements will likely be introduced in data reporting beyond what is already known.
The experience of the past years in data reporting and tax digitalisation shows that during the preparation it is worth emphasizing the flexibility and quick adaptability of the implemented solutions in addition to the adequacy and cost efficiency, since this will significantly facilitate the preparation in case of future obligations and changes.
If you have any questions regarding the above, you can contact directly Gábor Farkas, Director at PwC Hungary (e-mail: firstname.lastname@example.org) or Dóra Forgács, Manager at PwC Switzerland (email@example.com).
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https://onlineszamla.nav.gov.hu/home (HU Tax authorities’ portal for e-invoicing)
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