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