real time reporting

Real Time Invoice Reporting – Hungary

Important rollout dates – Real Time Invoice Reporting

The Hungarian government have been applying a requirement regarding real time invoice reporting since 2018 and on 1st Jul 2018 in accordance with (Act LXXXIII of 2018 amending Act CXLIII of 2015 on public procurement) the regulations came into force.

This obligation required taxpayers in Hungary to adapt their invoicing processes and Enterprise Resource Planning (ERP) systems in order to produce an XML file which must be transmitted to the Hungarian tax authorities without human intervention and which should include invoice data for all domestic transactions which contained VAT of 100K HUF or above. This threshold was abolished on 1st July 2020. Following this, all B2B transactions between domestic taxpayers fall within the scope of this reporting requirement regardless of VAT amount.

Effective 1st Jan 21 whilst reporting of B2B invoices was already mandatory, VAT exempt invoices (reverse charge IC deliveries) and all invoices for private consumers (B2C) were included in the scope and must be reported in the Real-Time Reporting System.

A grace period (penalty-free period) until 1st April 21 was subsequently granted where the tax authorities confirmed they would not levy penalties because of non-compliance until the end of March 2021. However, they are entitled thereafter to levy up to 500,000 HUF for each invoice with missing or incorrect invoice data submission.

With the introduction of the One-Stop Shop on July 21, it was further announced that Distant Sellers intending to use the OSS would be excluded from the requirement.

What are the Current Options available to ensure compliance with this reporting requirement ?

  • Download a free software from the Hungarian Tax Authority website to manage this reporting requirement “In-house”.
  • Configure ERP system to be able to report all transactions within the scope of this requirement directly to the Tax Authorities. A 200 page comprehensive guide is available on the Hungarian Tax Authority website.
  • Outsourcing to manage this obligation. TBI currently supports our existing clients in the management of their RTIR obligations with a number of tailored solutions.

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