Online reporting of VAT

From 1 July 2018, all data of those output invoices that contain VAT of at least HUF 100,000 should be reported online, real-time to the National Tax and Customs Administration (NAV). Taxpayers need to ensure that their invoicing software is capable of online data provision to NAV. Data should be provided about all items listed in section 169 of the Act on VAT.

The penalty for default or delay in data provision or for the provision of erroneous or false data may be up to HUF 500,000 per invoice.

The above data provision replaces the summary report about domestic invoices issued. At the same time the summary report about the VAT content of invoices received is maintained and the limit of data provision is reduced from HUF 1 million to HUF 100,000 per invoice.

In order to support the preparations for the change, the reporting system of NAV is already in operation and companies can join it now for testing purposes. Software developers can also find guidance for programming on the website of NAV in Hungarian, English and German languages. https://onlineszamla-test.nav.gov.hu/home

The new rule concerns not only sellers, but buyers as well. Recently, the European Court and the Hungarian Tax Authority have applied the principle that buyers are entitled to deduct the VAT content of input invoices from their tax only if they act with due care in order to verify whether their vendors have acted lawfully. Therefore, we recommend that those companies which receive invoices with particularly large amounts or establish relationships with new vendors, verify whether the vendors comply with their reporting obligations. NAV is to set up an online web portal where buyers can check whether their vendors fulfil their reporting obligations about the relevant invoices.

If you have any questions concerning the rules of online invoicing or if you need assistance in the development of your invoicing software, please do not hesitate to contact Crowe FST.