Main features of the upcoming real-time invoice data reporting in Hungary | News Flash

A new period starts from the middle of 2018, regarding to the relationship between entrepreneurs and tax authorities. The online system, which provides real-time data transmission of invoices, was originally scheduled to be implemented as of July 1st, 2017, and is expected to be in operation this July 1st, 2018.

All the entrepreneurs, who use invoicing programs, will have to send the data of invoices extracted from such an invoicing program directly via internet to the National Tax and Customs Administration of Hungary (NAV) without any human intervention. This solution will be somewhat similar to the data transfer of online cash registers, but entrepreneurs themselves must provide the preparation of their own invoicing system, to make sure that data can be transmitted electronically.

It is important to emphasize that the fact of issuing invoices abroad by using the parent company’s own invoicing software does not exempt the entrepreneur from the online reporting obligation in Hungary. In this case, the online, instantaneous electronic transmission of data must also be resolved.

Key requirements

Data submission is only required, if the amount of charged VAT reaches or exceeds HUF 100,000. If the entrepreneur issues invoices, where the charged VAT does not passes the above mentioned threshold, there is no such obligation.

During the technical compilation of the system, it might be important to note that it is not necessary to solve the sorting of invoices by the given VAT limit, but all invoices can be transferred to the authority. The tax authority will select and sort out the relevant data.

It must be pointed out that the introduction of electronic data transmission does not eliminate the possibility of hand-made invoices. However, if the VAT content of these invoices reaches or exceeds the value limit, than data must be submitted on the web interface manually within 5 days (for invoices exceeding HUF 500,000 VAT within 1 day).

The “KOBAK” test platform

Of course, running such a system involves a lot of IT issues. In answering these IT questions, experts from the tax administration are available, and even after registration, they offer the taxpayer the opportunity to test the prepared files to see if they meet the stringent requirements. As we have written in our previous newsletter, the licensing test system was named KOBAK, registration is available on the following website: www.onlineszamla.nav.gov.hu

As the deadline is approaching, it is expected that further information will be shared regarding to the operation of the system, and we will inform our customers about the new information in our newsletters.