Beginning from July 1, taxpayers and companies that invoice in Hungary must use a system that is connected online to the National Tax and Customs Administration (NAV). For many companies, the deadline may be too short, says a report by online business news portal vg.hu.
According to the regulations, invoices with VAT exceeding HUF 100,000 must be registered, which means a net amount of ca. HUF 370,000, Balázs Földes, senior tax manager at Crowe FST, said on public television, cited by vg.hu. The aim of the new system is to allow NAV to check if VAT returns are legal, Földes noted.
Tamás Vékás, tax partner at EY, told vg.hu last year that the new system may pose several problems. Even if the invoicing program developers update their software with the capability to provide online data, the companies using the software must reconfigure their accounting and billing systems and make the necessary tests. This requires huge IT resources and a lot of time, Vékás observed.
There is a great deal of potential for error, as if one single cell is not configured properly, the whole report will be faulty. In this case, NAV could impose fines of up to HUF 500,000, Vékás added.