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End of grace period for online invoicing nears

The grace period for online invoicing in Hungary ends on July 31, with the regulation having come into effect from the beginning of this month. Those unable to comply by the deadline are advised to look for alternatives.

Zoltán Tancsa, tax and legal services partner, Deloitte Hungary.

Those who did not create the conditions for online invoicing by the initial deadline have to complete a series of requirements to postpone the new regulation’s implementation until the end of the month. These businesses must register with the online invoicing system of the National Tax and Customs Administration (NAV), to which they must report relevant invoicing data by the end of July.

According to a press release sent to the Budapest Business Journal by Big Four consultancy Deloitte, it is expected that certain entrepreneurs will not be able to comply with the regulation by the deadline. If completion of the requirements is within a foreseeable time period, the entrepreneur might choose to start negotiations with his or her local tax authority. During the evaluation of fines, the tax authority takes into account transparent communications and cooperation.

“If a taxpayer faces the dilemma of not being able to comply with the data-providing requirements until the end of the grace period, it is worth thinking about alternatives,” says Zoltán Tancsa, Deloitte’s tax and legal services partner. “They should see whether there is a possible solution or method to follow, in order to avoid a problematic situation, to prevent malpractice in terms of data-providing duties.” 

Those clearly unable to comply for an extended period could also look for alternatives, the press release added. For example, a business may use an online invoicing-compatible partner company, or if they possess software that complies with the regulation, they may choose to carry out invoicing operations through that program instead of other ones they have installed.

Another alternative, NAV’s own invoicing software, is available through its “Online Invoicing” test platform. However, those who use this program also have to provide data about invoices under HUF 100,000.