The government will give businesses more than a year to adapt to the new system and tax authority NAV will provide them with all the necessary assistance, the ministry said in a statement.

In addition to contributing to the whitening of the economy, the online system will also significantly reduce administrative burdens on businesses.

The invoicing software will forward to NAV data on invoices on which the value of the VAT is at least 100,000 forints (EUR 324).

Data on the paper-based invoice will also have to be forwarded the day after its date of issue at the latest if the value of the VAT is 500,000 forints or higher. If the VAT is less than 500,000 forints, the data on the invoice will have to be forwarded within five days of the date of issue.

The system will also enable entrepreneurs to view all of their invoices that have been sent to the tax office, including those issued to them by their partners.

Republished with permission of Hungary Matters, MTI’s daily newsletter.