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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

DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. This positions us to help clients with their legal needs around the world.

With more than 60 lawyers, including 14 partners, and a staff of over 140, DLA Piper Hungary is one of the largest international law firms operating in Hungary. What makes us stand out is that we offer not only legal services but also tax and business advisory support in a fully integrated manner. We maximize synergies between legal, tax, and business advisory services to offer a unique service for our clients, particularly in regulated industries such as energy, infrastructure, life sciences, banking, and telecommunications.

We are a true full-service firm, providing our private and public sector clients with advice on all aspects of their business. This includes transaction-related advice, people and employment, commercial dealings, litigation, information technology, media and communications, intellectual property, insurance, tax, real estate, and restructuring plans.

DLA Piper Hungary has received numerous professional awards and is consistently ranked among the top law firms in Hungary by international rankings. We are ranked #1 by Mergermarket among the law firms active in Hungary based on the volume of M&A deals handled between 2005 and 2024.

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