As of January 1st, 2021, all B2B and B2C transactions must be reported to Hungarian tax authorities in real-time, regardless of the transaction amount. This “anti-VAT fraud measure” was the last wave in the adoption of real-time invoice reporting in Hungary.
Some of the rules related to real-time invoice reporting in Hungary that are in force from January 1st, 2021 are:
- All Hungarian business entities registered for VAT purposes must comply with real-time invoice reporting regulations.
- All transactions are in scope, business-to-business (B2B), and business-to-consumer (B2C), regardless of the amount.
- Taxpayers must report export invoices, both intra-, and extra-EU as well.
To fulfill this requirement, businesses affected by this obligation must register on the electronic platform Online Számla, provided by the NAV (National Tax and Customs Administration of Hungary), or connect their invoicing software directly to tax authorities. In other words, the invoicing software must report sales transactions in an XML format to Hungarian tax authorities in real-time in the layout specified by the Hungarian tax authority.
Reporting Status Notifications
Opposite to many other countries, the sender doesn't need to receive authorization from the tax authorities to issue the invoice.
The NAV will perform a regular validation of each transaction, and if it meets all the requirements, the sender will receive a message with the exact status of each invoice sent.
The NAV sends three notifications:
- Acceptance of the invoice
- Warning of a semantic error
- A technical error
Fonoa Automated Real-time Invoice Reporting Solution in Hungary
We are aware that new regulations in Hungary have a substantial impact on how businesses operate. That’s why we built Fonoa Reporting, a solution that automatically reports sales transactions to tax authorities around the world, including Hungary - immediately and without human intervention.
If your business is affected by real-time invoice reporting obligations in Hungary, reach out to us, and we will help you automate the invoice reporting process in Hungary.