HUNGARY | Requirements concerning billing and billing software in 2017



From next year on it is only possible (recommended) to use billing software that complies with the new requirements and forwards the details of the issued invoices real-time to the tax authority.

From January 2017 developers of billing software are required to incorporate this new function 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.

It is a further requirement from 2017 that the tax numbers of the buyers must be indicated on invoices on which the VAT content is at least HUF 100,000.  If you issue an invoice in 2016 on which the date of fulfillment is in 2017, then you only need to indicate the tax number of the buyer on those invoices whose VAT content exceeds HUF 1 billion. 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.