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Invoice Data-Reporting Obligations from 1 July 2018 in Hungary

Invoice Data-Reporting Obligations from 1 July 2018 in Hungary

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Based on the recently modified Hungarian VAT Act, in case of invoices issued in connection with transactions between resident taxpayers, the issuer of the invoice is obliged to report data from the invoice to the tax authority if the output tax is equal or above HUF 100,000. The goal of this obligation is the reduction of tax evasion and the whitening of the economy. 

The data-reporting can be carried out on a special online surface in case of paper invoices, or, in case of electronic invoices, by the invoicing system itself. The deadline of data-reporting depends on the type of the invoice and the amount of the output tax. In case of a paper invoice containing more than HUF 100,000, but less than HUF 500,000 of output tax, the data have to be provided to the tax authority within 5 days from the date of issuance of the invoice. If the output tax is equal or above HUF 500,000, the data have to be provided on the following day of the issuance at the latest. The data of electronic invoices have to be sent to the tax authority upon their issuance.

Failing to provide the data required, or in case of delayed or incomplete performance, the taxpayer can be fined by the tax authority. The maximum amount of the fine is HUF 200,000 for individuals and HUF 500,000 for other taxpayers. It is important that the fine is imposed after each invoice concerned. Therefore, it becomes useful for the taxpayers to obtain an invoicing system having the function to automatically provide the data required from each invoice to the tax authority.

By Gabriella Galik, Partner, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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