Hungary Expands Scope of Real-Time Reporting

Since July 2018, taxpayers in Hungary have been obliged to disclose the data of electronic invoices issued for transactions with accounted VAT exceeding HUF 100,000 (approximately €300). This data must be transmitted to the National Tax and Customs Administration of Hungary (NAV) in a structured manner once the electronic invoice has been issued.  This fiscal obligation is widely known as real-time reporting.

The real-time reporting frameworks in Hungary are currently undergoing a transition and a new and more robust reporting version 2.0 is being implemented.  It is expected that this will go live by February 2020. However, Hungarian taxpayers will be able to use the current reporting version 1.1 until 1 April 2020.  After this date, version 2.0 will become mandatory for all taxpayers who are obliged to submit the real-time report and the previous version will no longer be accepted. 

Earlier this month, the Ministry of Finance in Hungary announced a package of measures and proposals as part of its Economic Action Plan for 2020. Some of the measures are focused on improving VAT compliance with a proposed extension to the obligation to issue an invoice or receipt for the suppliers of most VAT exempt services.  These include education, property, and private healthcare services.

With a view to expanding the scope of the mandate on real-time reporting further, the Ministry of Finance has published a proposal to remove the current value threshold during 2020. As a result, most invoices issued by taxpayers in Hungary will have to comply with the new reporting obligation.

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Author

Victor Duarte

Victor is a Regulatory Counsel at Sovos TrustWeaver. Based in Stockholm and originally from Venezuela, he obtained a Law degree and a specialisation degree in Tax Law in his home country. Victor also earned a Master´s degree in European and Internal Tax Law from Lund University in Sweden.
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