, ,

Hungary VAT Reporting Is Here: Are You Ready?

Gustavo Jiménez
August 15, 2018

In June of this year, the Hungary VAT Reporting requirement went into effect. The country’s approach is unlike most other reporting mandates found throughout the world, as it is based on invoice amount – not company size.

All companies that make business-to-business transactions in Hungary are impacted.

With this requirement now live, companies operating in Hungary need to make sure they comply not only with the current regulation, but also with potential future updates and a wave of similar requirements rolling out throughout the world.

Hungary VAT Reporting is here. Is Your Company Ready?

  1. Does your VAT compliance process eliminate manual, human intervention? If not, it is in violation of Hungary’s law, which mandates that submissions be automatically triggered and that invoices cannot be amended or corrected.
  2. Are all your invoices submitted to Hungary’s tax authority within 24-hours of issuance? That’s the time frame mandated by the NAV, and late transmissions may incur a penalty of up to 500,000 HUF.
  3. Does your solution deliver seamless, automatic updates in the event of a regulation change? Spain introduced real-time VAT reporting in 2017, and its requirements have already undergone several major updates. Change management is the name of the game when it comes to VAT reporting, and companies must be prepared to constantly monitor such changes and update their systems accordingly.
  4. Is your ERP your centralised source of truth? VAT reporting done right requires a central system of record in order to have a bulletproof audit defense trail, which means compliance should be maintained within your ERP. No data should be housed or amended outside of this system.
  5. Is your data secure? Critical customer and company data is exchanged during real-time reporting. Data should be encrypted not only in transit to the tax authority, but also within the solution during data extraction and manipulation.
  6. Do you have an archiving system? The NAV requires invoices to be stored for eight years, and your archiving method should maintain the integrity of invoices to ensure no manipulation can occur.
  7. Is your data automatically verified? Your VAT compliance solution should automatically map data to the appropriate government-mandated XML field, analyse and validate data inputs, provide error reports and reconcile data with VAT forms. Only by automating this process can you ensure accuracy and full compliance.

Take Action

If you answered no to even one of these questions, you are at an increased risk of audits, fines and penalties. Sovos ticks each of these boxes, and more, with our Intelligent Compliance solution. Contact us to evaluate your current risk and safeguard your business in Hungary and beyond.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Gustavo Jiménez

Gustavo Jimenez is the Product Marketing Manager for Sovos’ e-invoicing solutions and is based in Atlanta. Gustavo is responsible for go-to-market strategy for Sovos LatAm e-invoicing solutions in countries with existing and upcoming mandates. He has more than five years of experience in e-invoicing, middleware integrations, and regulatory research. He works closely with the product management and development team as well as sales and marketing to facilitate compliance process transformations for Sovos clients. Prior to joining Sovos, Gustavo was responsible for marketing activities and strategy at Invoiceware International, a leading e-invoicing solution for businesses with operations in Latin America. He focused on the go-to-market strategy of their solutions as well as communications with the LatAm market about regulatory changes and new solutions.
Share This Post

North America Sales & Use Tax
June 1, 2023
3 Things to Remember if You Get a Sales Tax Notice

Have you ever received a sales tax notice from a state department of revenue? Whether you answered yes or no, there are important things to keep top of mind to help keep your business prepared. Finding out that you have failed to comply with one or more of your sales tax obligations can be startling. […]

North America Unclaimed Property
May 30, 2023
How to Set Up a Successful Unclaimed Property Program

Unclaimed property compliance can be difficult and overwhelming. Clients often ask what they should be doing to ensure they are compliant with the various laws and regulations. It isn’t easy, especially if you have multiple property types such as checks, credits or customer accounts that have the potential to become unclaimed property in multiple states. […]

North America ShipCompliant
May 30, 2023
How Hold At Locations Improve Your Customers’ Wine Delivery Experience

Direct-to-consumer shipping wine lovers enjoy the convenience of having their favorite vinos shipped to their front door. But what happens when, for whatever reason, they aren’t available to accept their wine deliveries? Whether they aren’t available during the day or they don’t have someone 21 or older available to sign for their package, these challenges […]

North America Sales & Use Tax
May 30, 2023
Identifying Sales Tax Liabilities and Why They Matter

By Steve Claflin, CLA It’s incredible that it has now been five years since the landmark Wayfair decision. It seems like just yesterday we were reading the case, alerting clients and tracking the ever-developing state guidance. Unfortunately, many companies still are not familiar with their sales tax filing obligations caused by economic nexus, or they […]

North America ShipCompliant
May 25, 2023
Out-of-State Breweries Gain Self Distribution, DtC Rights in Oregon

Under a settlement agreement, breweries located outside of Oregon now have more options for selling into the Beaver State, including direct-to-consumer (DtC) shipping and self-distribution to retailers. The settlement arose out of a lawsuit filed by a group of Washington breweries last year challenging Oregon laws that limited beer self-distribution to in-state breweries and DtC […]