As the last wave in adopting real-time invoice reporting, Hungary introduced an obligation for all VAT registered businesses to report their sales transactions in real-time to Hungarian tax authorities as of January 1st, 2021. We already discussed this topic, and you can find the article here.
However, due to the tough situation with Covid-19, which had a strong impact on the economies of most world countries, including Hungarian, Hungary introduced a 3-month grace period. As a result, they decided not to impose any penalties for those who do not comply with new real-time invoice reporting regulations.
Today, on April 1st, 2021, that grace period expired, and as of today, all businesses are obliged to comply with real-time invoice reporting regulations in Hungary.
The Scope Of Real-time Invoice Reporting In Hungary
Let’s summarize some of the most important rules related to the new invoicing regulations in Hungary:
- All Hungarian businesses registered for VAT purposes must comply with these regulations
- Almost all transactions are in scope: a) business-to-business (B2B), b) business-to-consumer (B2C), c) intra-, and extra-EU supplies, d) exports
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 and using a new, v3.0 reporting schema.
At the moment, the grace period has been extended by June 30th, 2021, for B2C distance sales, likely because of the announced EU VAT 2021 package, which will introduce new rules for businesses dealing online. We already covered what VAT changes coming into effect as of July 1st, 2021, in this article.
Fonoa has built an 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 - immediately and without human intervention.
Our solution is directly connected to NAV (Hungarian tax authority) and can report sales transactions for our clients - fast, reliable, and super scalable.
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.
Reach out to us, and we will help you automate your real-time invoice reporting in Hungary.