Hungary Real-Time Invoice Reporting (Online Számla)
What is RTIR in Hungary?
The Hungarian government has been applying a requirement regarding real-time invoice reporting for a while. Since 1 July 2018, taxpayers in Hungary are obliged to provide invoice data to the tax authority for domestic transactions with a minimum VAT amount of 100,000 HUF. This threshold for RTIR was eliminated on 1 July 2020. Therefore, all transactions between domestic taxpayers shall be reported regardless of the amount of VAT. Use of the new RTIR version (V2.0) became mandatory at the same time. The objective of this regulation is to reduce VAT fraud.
How does RTIR work in Hungary?
Within the online invoice system, real-time data on the issued invoices are sent to the National Tax and Customs Administration (NAV) in XML format.
Reporting of the issued invoices (and documents regarded as equivalent to an invoice) shall be fulfilled after the issuance within a short period of time.
In case of invoicing with a billing/accounting software, the invoice data shall be transmitted to the government immediately after preparation, without human intervention. The software must be able to meet the reporting requirement for each invoice. With the automation of data reporting, the administrative burdens are decreasing for users of billing/invoicing software.
What is the required data RTIR should be transmitting in XML format?
– Exact Time, the endpoint identifier
– Manufacturer’s Name, Software Name, Version Number
– Invoice Type
– Genuine Invoice Details
– Modification Invoice Details
What are the consequences of not complying with the real-time invoice reporting in Hungary?
Failure to comply with real-time invoice reporting can lead to administrative penalty of up to 500,000 HUF per invoice.
Version 3.0 is on the way. The final deadline is 1 April 2020:
The Tax Authority had been planning to transform the online invoice system to electronic invoicing. Another important step in this transformation, version 3.0, will be available for taxpayers from 1 January 2021.There is a grace period until 1 April 2021. Until this time, the old version may be used. The details will be announced by the Tax Authority. It is expected that under the new version:
– Taxpayers will have to report B2C invoice data in electronic format to the system.
– The invoice system will replace paper invoicing, which poses a great threat to public health during the COVID-19 pandemic. Buyers will be able to download the invoices directly from the system.
– VAT Return will not be submitted separately. The data on the e-invoices sent will be auto-populated in an online version of VAT Return.
SNI Hungary Real-Time Invoice Reporting solution helps to retrieve required information from client’s financial tables in SAP in terms of data consistency. This retrieved information is mapped and processed to convert into the XML file required by the Tax Authority and sent to the NAV directly from the SNI Cockpit without requiring an external third party, in just one single SAP add-on solution.