2017.05.02. Itemized VAT regulation

According to the new law, businesses issuing invoices with VAT value of more than HUF 100,000 (EUR 320)- including all modification invoices that relate to the original invoice - must report these invoices online in real time to the Hungarian Tax Authority. The new law also applied to the Hungarian VAT registrations of the foreign entities.

Failure to comply with this obligation may result in a penalty of up to HUF 500,000 (EUR 1,700) per each undeclared invoice.

The deadline of this law will be postponed until 1 July 2018.

Businesses issuing invoices using invoicing software will be required to provide real time data regarding these invoices from 1st July 2018, while businesses will be able to test the real time invoicing reporting as soon as 1 July 2017.

Regarding the new requirements for the invoicing software, companies will need to make invoicing software capable of real time data transfer by 1st of July 2018 at the latest.

It is likely that the new real time reporting obligation will be closely linked to the existing obligation to provide data in the XML format (also known as Standard Accounting File or SAF). We recommend reviewing your SAF export function and extending it further to satisfy the new requirement. Our team of IT and VAT experts can help you to understand these requirements better and provide you with the details of the enhancements needed once the HU TA publishes specification of such communication. (RSM)