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Our previous article concerning online reporting is hereby supplemented based on the information published by the Tax Authority on March 24, 2020.
Taking into consideration the special circumstances caused by the coronavirus pandemic and in line with governmental measures and proposals to slow its spreading, the National Tax and Customs Administration will not cease to support the XSD 1.1. version of the Online Invoicing System as of April 1, 2020 and will not make the use of the XSD 2.0 version obligatory. With this, continuous data provision can be assured by every taxpayer without the need of any technical operation requiring personal presence related to the transition.
However, it is important to note that XSD 2.0 can already be used live in parallel with the XSD 1.1 version , thus conditions for the change are already provided on the web page of Online Invoicing. Thus, it is asked from taxpayers to continue the preparations for using the new XSD cersion – considering the possibilities available given the situation and maintaining safe working conditions – and if possible, carry out the transition as soon as possible.
The final deadline for phasing out the 1.1 version and converting to the 2.0 version will be July 1, 2020.
In addition to the technical facilitation above, there may be additional relief regarding online reporting, but this will require legislative changes.
As the annual closures approach, it is smart checking some highlighted areas again. One of these checkpoints is the audit obligation in Hungary. There are several statutory requirements for audit obligation, but primarily the provisions of the Accounting Act must be taken into account.
The law obliges all companies to audit, but waives this obligation depending on the value limit.
The audit is not mandatory if the company’s annual net sales (calculated for the period of one year) did not exceed HUF 300 million on the average of the two financial years preceding the financial year under review, and if the average number of employees of the company of the two financial years preceding the financial year under review did not exceed 50 persons.
However, the exemption may not be applied by organizations specified by the law, and therefore subject to audit:
In the case of a company established without a legal predecessor – when applying a value-dependent exemption – if the data of the company are not available for either or both of two financial years preceding the given financial year or if such data is incomplete, the data estimated for the current year, and if available , the data of the two previous financial years (calculated for the period of one year) should be taken into consideration.
Let us see some practical examples:
In 2018, the company’s turnover was HUF 650 million, with an average of 45 employees.
Average Revenue (150+650) / 2 = HUF 400 million, which is more than HUF 300 million.
Average number of employees (15+45 person) / 2 = 30. This is less, then 50 persons.
The two exemption clauses are not met at the same time; thus the company will be subject to an audit from 2019 on.
In 2018, the company’s turnover amounted to HUF 250 million, with an average number of 45 employees.
The average sales revenue (50+250) / 2 = HUF 150 million, which is less than HUF 300 million.
The average number of employees (15+45 person) / 2 = 30 employees, which is less than 50 employees.
The two exemption clauses are simultaneously met; thus the company is not required for audit from 2019 onwards.
In 2018, the company’s turnover amounted to HUF 350 million, with an average number of 45 employees.
The average sales revenue (250+350) / 2 = HUF 300 million.
The average number of employees (15+45 person) / 2 = 30 employees, which is less than 50 employees.
The two exemption clauses are simultaneously met; thus the company is not required for audit from 2019 onwards.
In 2018, the company’s turnover amounted to HUF 150 million, with an average number of 15 employees.
The ’annualization’ of sales revenue is 150/5 x 12 = HUF 360 million, which is more than HUF 300 million.
The company is subject to an audit from 2019 on.
In 2017, the company’s turnover amounted to HUF 50 million, with an average number of 5 employees.
In 2018, the company’s turnover amounted to HUF 350 million, with an average number of 45 employees.
The ’annualization’ of sales revenue of 2017 is 50/5 x 12 = HUF 120 million. (120+350)/2 = HUF 235 million, which is less than HUF 300 million.
The company is not required for audit for 2018.
If the numbers of accounting indicate that the year is subject to audit, then the auditor should be appointed by the main board of the company. The appointment must be made during the general meeting or an assembly, in a form of the owner’s decision or resolution, depending on the form of the company.
The Legal Department of Accace Hungary is more than happy to help You out in such cases!
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