Expansion of the Range of Invoices Subject to the Reporting Obligation
Under the new rules, data must also be provided on invoices issued to non-Hungarian taxable persons, as the obligation to provide data extends to all invoices to which the invoicing rules of the Hungarian VAT Act apply. This means that as of 4 January 2021, invoices issued to non-taxable persons or organisations (domestic or foreign), as well as invoices issued domestically to non-resident taxpayers (i.e., to taxable persons established in another Member State or a third country) are also subject to the reporting obligation. The extension of the reporting obligation also affects foreign companies with VAT registration in Hungary. From now on, they will be required to report almost all of their invoices, explain the Ecovis experts.
NAV Online 3.0 Online Invoice Reporting System Introduced
Alongside the extension of the reporting obligation, the tax authority has introduced NAV Online 3.0, the latest version of the Hungarian online invoice reporting system, which modifies the framework for fulfilling reporting obligation in line with legal changes and supports invoice processing. It has also been expanded with a completely new feature, the support for electronic invoicing. Supplier invoice data reported by partners can also be downloaded from the online invoice reporting system.
Failure to Fulfil the Data Reporting Obligation
The invoice data issued by the electronic invoicing program must be transmitted electronically to the online invoice reporting system immediately upon issuance of the invoice, without human intervention, in XML format in the manner and data structure specified by the tax authority.
If a company fails to comply with the online reporting obligation, a fine up to HUF 500,000 (approx. EUR 1,400) may be imposed for each invoice omitted from the report.
Taking into account the difficulties caused by the new wave of COVID-19, the Hungarian tax authority has granted a sanction-free period for non-compliance with this obligation until 31 March 2021. The Ecovis consultants recommend that all taxpayers use this period to prepare their invoicing systems for the extended data reporting obligation.
For further information please contact:
Dr. László Kelemen, Tax Partner, ECOVIS TAX SOLUTION HUNGARY, Budapest, Hungary
Email: laszlo.kelemen@ecovis.hu
Ecovis is a leading global consulting firm with its origins in Continental Europe. It has almost 8,500 people operating in nearly 80 countries. Its consulting focus and core competencies lie in the areas of tax consultation, accounting, auditing and legal advice.
The particular strength of Ecovis is the combination of personal advice at a local level with the general expertise of an international and interdisciplinary network of professionals. Every Ecovis office can rely on qualified specialists in the back offices as well as on the specific industrial or national know-how of all the Ecovis experts worldwide. This diversified expertise provides clients with effective support, especially in the fields of international transactions and investments – from preparation in the client’s home country to support in the target country.
In its consulting work Ecovis concentrates mainly on mid-sized firms. Both nationally and internationally, its one-stop-shop concept ensures all-round support in legal, fiscal, managerial and administrative issues.
The name Ecovis, a combination of the terms economy and vision, expresses both its international character and its focus on the future and growth.
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