As from 1 July 2020, Hungary broadens the scope of the Online Invoice Reporting System with the aim of further tightening the economy and combatting tax fraud by granting a 3-month sanction-free period, to be effective immediately, for failure to report.
The following measures are introduced:
- the threshold of HUF 100,000 will be abolished, which means that issued invoices must be reported to the National Tax and Customs Administration (NTCA), notwithstanding the amount of input VAT (for domestic transactions). Prior to 1 July 2020, only invoices exceeding this threshold had to be reported;
- invoices issued manually without the use of billing/ accounting software must be reported on the website of the NTCA within 4 days (5 days before 1 July 2020). Invoices stating an amount of input VAT of HUF 500,000 or more must be reported within 1 day following the day of issuing the invoice; and
- invoices issued with the use of billing/accounting software must be reported in real time by submitting them electronically to the NTCA immediately upon issuing the invoice.
Note: The Online Invoice Reporting System was introduced in Hungary on 1 July 2018 with the aim of strengthening the tax system and discouraging tax fraud. More information is available on the NTCA website. It is a tax reporting tool for invoicing data.
Both invoices issued and invoices received must be reported. Reporting on the data of invoices received is retrospective and periodical, being part of the taxable person’s VAT return. The Online Invoice Reporting System also supports the fulfilment of this obligation as the taxable person receiving the invoices can check on the website of the NTCA which invoices were reported as issued to him.
A special sanction applies to failure to report invoice data, or to inaccurate invoice data reporting. However, due to the COVID-19 pandemic, the NTCA has announced a 3- month sanction-free transitional period if taxable persons fail to observe the reporting obligations applicable as from 1 July 2020.
Source Credit – IBFD