Since July 2018, all domestic VAT taxable persons in Hungary have to supply their invoice data in real time to the National Tax and Customs Administration (NAV). It includes all the b2b invoices issued to another domestic VAT taxable person. VAT taxable person are those who has
- VAT code 2, nine digit tax identification number (TIN),
- VAT code 1, because the entity is subject to individual exemption, or only carries out tax-exempt activity, or exclusively carries out an activity entitled to flat-rate compensation,
- VAT code 5, VAT taxpayer subject to group taxation.
Invoice data must be in machine readable XML format and must be sent without human intervention. With the automation of the reporting, the administrative burdens and costs are reducing for users of invoicing software.
The current version 2.0 ( as of July 2020)
- Eliminated the previous invoice reporting threshold of HUF 100.000
- Made reporting of “reverse charge VAT transactions” and “transactions of taxpayers exempt from VAT” obligatory.
- Eliminated the threshold of reporting VAT return M-forms for all invoice items related to the purchase of products or services
- Made it mandatory to indicate the tax number of the purchasers (accounts receivable) in both the invoice and the XML files, for all transactions
- For manual invoices, the reporting deadline is shortened from 5 days to 4 days. (There is no change regarding invoices issued with an invoicing program, the real-time reporting obligation remains in place.)
- Changed the mandatory XML schema from 1.1 to 2.0
- Made it possible to see the inbound invoices on the NAV portal.
The new version 3.0 (as of January 2021)
- VAT registered businesses in Hungary will have to report the data of all the B2C invoices they issue to individuals.
- Invoices issued to intra-Community companies must also be reported to NAV.
- Buyers will be able to download the invoices directly from the online invoice system. It can replace paper invoicing.
- Invoice data will be auto-populated automatically in VAT return. No need to submit a separate VAT return.
- Invoice schema will change to 3.0
There is a grace period until 1 st of April. After that version 3.0 will be mandatory.