Hungarian legislators provide uniform regulation regarding the invoicing requirement for continuously supplied services. The new rules were formed in 2014 and the amendments entered into force subsequently on different dates.
The latest amendment ‒ prior to the January amendment ‒ entered into force in 1 July 2015 providing special invoicing rules for continuously supplied accounting, audit or tax advisory services. That special rule was abolished, and as of 1 January 2016, uniform invoicing rules are applicable for the continuously supplied services.
According to the main rule, the tax point of the transaction is the date of supply. Since the invoice of continuously supplied goods and services covers supplies performed within a previously agreed period, special rules are required to define the date of supply. These uniform special rules as of 1 January 2016 are the following.
As a main rule, the date of supply for goods and services that are continuously supplied and regularly invoiced is the last day of the relevant period.
If, however, the due date for payment and the invoicing occur before the last day of the relevant period, the date of supply is the date when the invoice is issued. If the due date of payment falls after the last day of the period, the date of supply is the due date of payment, but at the latest on the 60th day after the last day of the period.
The invoicing period of continuously supplied services still cannot exceed 12 months, and if it does exceed 12 months, proportionate (partial) payment has to occur on the last day of the 12th month. The rule of intra-community tax-exempted supplies did not change either; the invoicing period for those services cannot exceed one month. If, however, the invoicing period exceeds one month, there has to be a proportionate (partial) payment on the last day of the month. The rules of continuously supplied services are still not applicable for transactions in which the purchaser acquires ownership on a certain good at the end of the defined term or upon payment of the final installment under a lease agreement for defined term or an agreement for installment payments.