Hungary real-time VAT reporting

The new reporting requirement is applicable to sales invoices where a VAT amount of HUF 100.000 or more is charged. Furthermore, the system shall be applicable only between taxable entities registered in Hungary. Therefore, for example it is not obligatory to report invoices to private individuals.

The reporting is done through an XML file and should be automatically produced and forwarded to the tax office without human intervention within 24 hours of issuing the invoice. The system will return a confirmation code, which needs to be recorded and stored. When an invoice is reported through the portal of the Hungarian government, both the supplier and the customer can check the invoice there. Not fulfilling the above requirements may involve penalties up to HUF 500.000 per invoice.

Please note that different reporting timelines apply to special paper invoices (pre-printed). These type of invoices do not fall under the general rules but these are rarely used.