HUNGARY | Requirements concerning billing and billing software in 2020

Since 2017 it is only possible ( and highly recommended) to use billing softwares that complies with the new requirements and forward the details of the issued invoices real-time to the tax authority. The price for the misconduct would be high, up to HUF 500 000 per invoice.

Since January 2017 developers of billing softwares are required to incorporate new reporting function to tax office in their applications, and from the second half of 2017 data forwarding has two operate in production mode. The tax authority has access to details of the invoices under the current rules as well, since every billing software is required to produce a so-called NAV XML, if requested by the tax authority. These files are usually required to be submitted in tax audits already. Since June 2018 the VAT invoices whose VAT exceeds the HUF 100 000 should be reported to the tax ofiice within 5 business days, and real time in case the VAT exceeds the HUF 500 000. The billing softwares have to be able to communicate with the tax office real time.

From July 2020, all of the invoice issued to a VAT registered business by a Hungarian company, self-employed or VAT registered other type of entity should be reported to the tax office real time.

From January 2021 all of the invoices issued by a Hugarian taxpayer to local natural or legal persons have to reported to the tax office real time.

It is a further requirement since 2017 that the tax numbers of the buyers must be indicated on invoices on which the VAT content is at least HUF 100,000.  The provision that the numerical tax ID of buyers is not required to be indicated on invoices issued to private individuals, remains in effect.

Billing applications

The use of billing applications has been spreading at an exorbitant speed in Hungary, and several of these applications offer functions that include companies contained in the company registry and their details as well. If you use a billing application in which this function is active, then you will not have to obtain the tax numbers of your customers individually, because the database of the billing applications will already contain them. In addition, most of the billing applications operating on an Internet interface will probably be made suitable for real-time data supply to the tax authority within a short time.

The use of billing software and applications must be reported to the tax authority, and you must also inform them if you terminate the use of a particular billing application. On the other hand, there is no restriction on how many types of domestic or foreign software applications you are allowed to use, the main thing is that they should comply with the provisions of the VAT law, the law on the regime of taxation and the  NGM decree.