Hungaryʼs online invoicing kicks in on Sunday
As of Sunday, July 1, all companies must send the tax authorities a copy of their invoices containing VAT higher than HUF 100,000. But the situation two days before going live is still far from satisfactory.
The reasoning behind the online invoice registration system is to reduce tax fraud and allow the National Tax and Customs Administration of Hungary (NAV) to see the issued invoices in real time and to identify attempted tax fraud sooner. All invoices must be registered, which means hard-copy invoices too.
According to experts cited by business daily Világgazdaság, many companies are not yet prepared to connect to the NAV systems. The technical specifications were published only in January and the final version of the law was published in the official gazette Magyar Közlöny on June 1. Furthermore, the online system at NAV went live only last week. Tests runs since have revealed many technical issues which need longer tests and troubleshooting.
Companies that are not yet prepared for the online invoice registration can opt for several solutions: buy software able to forward the data or, if possible, delay issuing the invoice. Or they can temporarily opt to issuing hard copy invoices. In this case, companies will need to register the invoice with NAV manually.
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