Hungary real-time invoice reporting

On 1 July 2018 Hungary has introduced real-time, electronic reporting of domestic B2B sales invoice data. The anti-VAT fraud reporting measure applies to all VAT registered businesses, resident or foreign. There was a reporting threshold on invoices with a VAT element of HUF 100,000 (approximately €320) or more until 30 June 2020. The live reporting replaced the existing domestic sales ledger listing, which is filed monthly with the VAT return. The purchase ledger (M Sheet) is still  required.

Webinar – Hungary real-time invoice reporting

Adam Alonso from Avalara discusses the scope of the new Hungary real-time invoice reporting.


Key features of Hungarian real-time invoice reporting

Key features of Hungarian real-time invoice reporting

  • Applies to all Hungarian VAT registered businesses, resident and foreign
  • All B2B Sales invoices, with VAT or exempt. Invoice with a VAT element below HUF100,000 are included since 1 July 2020.
  • Exports, EU dispatches, B2C transactions are excluded from the requirement to report
  • B2C transactions will be added from 1 January 2021.
  • Invoice data to be transmitted is based on the requirements of the Hungarian VAT Act
  • Penalties for late or missed submissions will be up to HUF 500,000 (approximately €1,600) per invoice
  • The existing domestic sales listing has been withdrawn. This is filed monthly with the VAT return. However, the domestic purchase listing will still be required to be submitted.

Submissions

  • Submissions will be to the Hungarian National Tax and Customs Administration (NAV) via the new KOBAK online portal, with sandbox environment now live
  • The process of submissions must be fully automated over the internet from accounting, ERP or billing systems, without manual intervention.
  • NAV has made available a free mobile invoice creation app which feeds into the system
  • Filtered invoice data must be converted into the XML format provided by NAV
  • Submissions should be ‘live’, at the time of the invoice’s creation. This is deemed to happen when the invoice in the invoicing system is finally locked, and can only be changed by issuing a new invoice/credit note
  • Locked invoices may be submitted individually, or through batches of up to 100 invoices per time will be accepted – implying not instant submissions
  • When submitting, firstly an electronic invoice submission token will be issued to the tax payer. This must be then used with the upload of the locked invoice(s) batch. The token is only live for approximately 5 minutes.
  • KOBAK will reply per invoice with one of the following: Accept; Reject and error; Warning
  • An electronic reference number is issued against the invoice. However, this does not need to be printed on the invoice as is just a reference for potential future audits
  • Errors must be resubmitted electronically or manually within three days of the original submission
  • Credit notes and replacement invoices changing the details of reported invoices must also be reported.
  • Invoices produced within manual environments must be submitted electronically within 8 days of their issuance

Fines

Failure to provide invoice information in the prescribed format and on time may result in a fine of up to HUF 500,000 (approximately 1,700) per invoice


How real-time invoice reporting works for Hungary

How Avalara can help

Avalara VAT Reporting

Avalara VAT Reporting solution for Hungary provides detailed coverage and automation of the following:

Periodic VAT filings

  • Intrastat declarations
  • European sales listings
  • Reverse charge listings
  • Local listings
  • Comprehensive VAT legislative checks

SAP connector solution

The SAP connector solution that is separate from the existing VAT Reporting extractor.

This new connector will connect to the Avalara Hungary Live Reporting web service. Each B2B invoice will be immediately reported to Hungary via the Avalara web service.

For Non-SAP we will provide an API.

Reporting web service

Avalara Hungary Live Reporting (HULR) web service – a new web service using the SaaS Reporting platform.

This service will accept invoices in the XML format specified by Hungary. Once the invoice is received it will be submitted to Hungary.


Download Hungary real-time invoice reporting datasheet