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Invoice Data Supply Without Sanctions until 31 March 2021

Invoice Data Supply Without Sanctions until 31 March 2021

Hungary
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The rules of obligatory invoice data supply were modified as of 4 January 2021 in a way that the data of such invoices, modifying or annulling invoices, which are subject to the invoicing requirements of the Hungarian VAT Act, must be supplied to the tax authority. As a result, the invoices issued for domestic or foreign natural persons, legal persons or organisations not subject to VAT as well as for not domestic persons subject to VAT are affected by the obligation of invoice data supply from 4 January 2021.

The main part of the data to be supplied is the compulsory data content of the invoice under the VAT Act. In addition, in specific cases it also covers other data relating to the invoiced transaction. For example, the following must be indicated in the data supply: the transaction falls outside the territorial scope of the VAT Act, if the place of performance of the transaction is not in Hungary; whether the transaction must be considered as supply of goods for consideration or supply of services for consideration, if this transaction is performed to a different person or organisation; the currency used for determining the taxable amount.

The Hungarian tax authority published a statement on 16 December 2020 that under certain conditions, it will not impose default penalty for the period between 4 January and 31 March 2021 in case the persons subject to VAT does not supply at all or properly data on invoices. Furthermore, the persons subject to VAT have the opportunity to prepare their invoicing program for the data supply applying the new version 3.0 scheme until 31 March 2021 at the latest, without sanctions by the tax authority. After this deadline, in case of failing to perform the invoice data supply, or late, defective, incomplete performance or performance with false data content, the tax authority is entitled to impose default penalty by discretion of all circumstances of the case.

By Lidia Suveges, Attorney at law, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com