Seven Key Changes Related To Invoicing In Hungary

  • 10 Mar 2020 2:25 PM
Seven Key Changes Related To Invoicing In Hungary
Colling's bookkeeping, tax advisory, payroll and cafeteria services can greatly contribute to the smooth and successful operation of your company. In this article they list 7 changes related to invoicing in Hungary that if not followed might entail serious risks of penalties.

1. Introduction of the online invoice version 2.0 in 2020, as of 1 April:

There are serious xsd scheme-changes incoming to the online invoice data provision, but this also means new opportunities for automation.

With these data, the authorities would like to gather information which extends beyond the original concept, the immediate report of the invoices issued.

These data have not appeared on either the invoice image or in the VAT law in 2019, so the invoicing programs will most likely not be able to report these without changes.

It is advised to read the newsletters and pay attention to the announcements of invoicing program creators, especially if the company uses a unique system, or if they issue their invoices from an enterprise resource planning software. If no notifications arrive of suitability, it is advised to submit a request to the programmers.

2. As of 1 July 2020, the scope of tax exempt transactions in which invoices are not required will decrease. In case of miscellaneous education and the sales of exempt properties, it will be required to issue an invoice.

It is still not required to issue an invoice (an accounting receipt is necessary instead) in case of renting exempt properties.

In case of advances
, in respect of the invoice or document considered the same as an invoice about the final performance, the difference resulting in calculating the advance must be reported.

3. As of 1 July 2020, the 15-day deadline considered reasonable for issuing the invoice is reduced to 8 days. This means that the invoice must be issued within 8 days of performance.


4. As of 1 July 2020, the customer’s tax number must be indicated on every invoice issued to a customer with a local tax number.

Furthermore, as of 1 July, the online invoice data provision will be mandatory in case of every invoice issued to a customer with a local tax number.

Both regulation affects every entity subject to VAT, including those with KATA, those exempted from tax, companies conducting tax exempt businesses which issue invoices, and also businesses under reverse charge regulations.

5. As of 1 January 2021, the online invoice data provision will basically affect every invoice issued by any of the local tax entities, except for businesses not conducted for tax entities, which need to be reported via the so-called “single-window system”.
 

Online invoice data provision obligation

2019.

1 July 2020

2021

Business subject to local VAT (B2B)

Only above HUF 100,000

Yes

Yes

Local reverse charge taxation (B2B)

No

Yes

Yes

Tax-exempt business (B2B)

No

Yes

Yes

Invoices issued for tax exempt business (B2B)

No

Yes

Yes

Local tax exempt sales or service provision (B2B)

No

Yes

Yes

Product export

No

No

Yes

Intra-community sales

No

No

Yes

Sales to local private individuals

No

No

Yes

Business conducted internationally

No

No

Yes

Business conducted in other member states that needs to be reported via the single-window system

No

No

No


6. The conditions of the tax exemption of intracommunity goods sales become significantly stricter, simultaneously meeting the following criteria is necessary:
* the product’s submission or delivery to another member state is verified,
* the sales is carried out to another not local tax entity from another member state of the Community, or to another legal person registered in another member state of the Community, who is not a tax entity but is obliged to pay taxes,
* the person specified in point b), the customer, possesses a valid tax number in another member state of the Community, and of which they informed the seller, and the tax number was also indicated on the invoice!
* the tax entity carrying out the sales fully meets their obligation without issues to submit the consolidated statement numbered ’A60, or verifies that the breach, issue or incompletion related to the consolidated statement took place despite their bona fide procedure, and at the same time hands every data required to assess the full and correct content of the consolidated statement to the national tax and customs authorities.

7. Is no longer a question, but how the United Kingdom leaves the EU is still under discussion. Regarding VAT, Brexit might bring many changes to the business of companies.

It is important, for example, that the goods arriving from the United Kingdom are to be considered goods import, and what is delivered there will be considered goods export.

For such businesses, different transportation documents are necessary, and the invoicing programs, enterprise resource planning and other IT systems of companies will have to be changed in accordance with the new procedures.

The British companies which have a tax number in Hungary may only carry on with their business activities via financial representation!


The supply of financial representation has special rules, which pose extra conditions that need to be met by the financial representatives. The related British companies are advised to contact the companies allowed to perform financial representation now.

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