Hungary’s eagerly awaited mandatory live invoice reporting system is set to launch on 1st July 2018. As of this date, invoices with a VAT value exceeding HUF 100,000 must be reported in real-time to the Hungarian tax authorities, via the Online Invoice System (the National Tax and Customs Administration’s e-invoicing portal).
The requirement impacts all businesses registered for VAT in Hungary, who perform domestic business-to-business (B2B) transactions and issue sales invoices of a VAT amount greater than HUF 100,000. Hence this includes non-resident businesses.
The requirement does not apply to business-to-consumer (B2C) transactions, so distance sellers should not be affected by these changes. All sales invoices and related documents such as credit and debit notes, for domestic business-to-business (B2B) transactions, with a VAT value exceeding HUF 100,000 must be reported.
Paper invoices with a VAT value of up to HUF 500,00 must be electronically reported within five days of their being issued. Invoices with a VAT value over this amount, must be submitted within 24 hours. There will however be no need to file recapitulative statements for sales invoices although the submission requirement for purchase invoices remains.
Failure to submit invoice data files on time or in the specified format may incur penalties of up to HUF 500,000 for each invoice.
It is vital to integrate invoicing software with the ability to transmit data in real-time into existing accounting and ERP systems, by 1st July of this year.