VAT represents Hungary's largest source of revenue. The most recent measure to counter VAT fraud is the obligation of taxpayers to electronically disclose data on certain invoices to the tax authorities. The aim of the electronic reporting of invoices is to ensure that the tax administration has real time access to invoices.
Since 1 July 2018, (at least) the mandatory contents of invoices as specified in the Hungarian VAT Act should be provided to the tax authority electronically. This requirement only concerns invoices of taxpayers registered for VAT in Hungary, provided that the VAT charged in the invoice amounts to at least HUF 100,000 (approximately EUR 310).
Invoices from cash registers are not subject to this obligation (the cash register will continue to provide data on such invoices). This data disclosure obligation also does not cover reverse charge transactions (as no VAT is charged in invoices regarding such supplies). However, a taxpayer may decide to submit data on all invoices issued to resident taxpayers regardless of whether VAT is charged in the invoice or the amount thereof. The taxpayer may also decide to voluntarily disclose additional information regarding the invoices.
In case of invoices issued by invoicing software, the invoice data should be transmitted to the tax authority in real-time, without human intervention, immediately when the invoice is issued. Therefore, the data-supply function of the invoicing software has become a requirement in this respect, i.e., the software should be able to ensure the electronic transfer of at least the mandatory data content to the tax authority. An invoice is considered to be issued if the invoicing software has foreclosed the further modification of the data indicated therein (such modification can only be affected by issuing another document).
In case of manual invoicing, the data of the invoice should be recorded on the web interface provided by the tax authority within five calendar days of its issuance. However, if the VAT charged in the invoice amounts to at least HUF 500,000 (approximately EUR 1,548), then the data of such invoice should be recorded on the web interface on the day following the day on which the invoice was issued.
As a prerequisite for complying with the electronic data disclosure obligation, the taxpayer should register with the designated portal of the tax authority.
A default penalty for each affected invoice may be imposed upon the taxpayer for non-compliance with the data disclosure obligation (or for its late, incomplete, erroneous performance as well as for providing false data). The amount of such penalty is HUF 200,000 (approximately EUR 619) per affected invoice in case of private individual taxpayers and HUF 500,000 (approximately 1,548 euros) per affected invoice for other taxpayers. Based on the official communication of 1 July 2018, however, the tax office will not levy the above default penalties in first month provided that the taxpayer has registered on the online real time invoice reporting system and provides the relevant invoice data for the first month by the end of July at the latest.