From today, July 1st, 2020, all transactions between VAT taxable persons (business-to-business) must be reported to Hungarian tax authorities in real-time.
As announced at the beginning of this year, Hungary introduced mandatory real-time reporting for all transactions between business entities established in Hungary as a first step in the adoption of the real-time reporting of sales transactions.
The second wave of mandatory real-time reporting of sales transactions, which will include all transactions between businesses and individuals (business-to-customer, B2C), will be implemented from January 1st, 2021. Under the current rules, real-time reporting is mandatory only if the amount of the invoice is higher than HUF 100,000 (ca EUR 290). From January 1st, 2021, all transactions must be reported in real-time to Hungarian tax authority, regardless of the amount.
To fulfill this requirement, businesses affected by this obligation must register on the electronic platform Online Számla, provided by the National Tax and Customs Administration of Hungary (NTCA), or connect their invoicing software to tax authorities. In other words, the invoicing software must be able to report sales transactions in an XML format to Hungarian tax authorities in real-time in the layout specified by the Hungarian tax authority.
Affected by this obligation and need help to comply with new regulations? Avoid compliance risks and high fines, contact us, and we will help you.