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Varga envisions tax evasion narrowing significantly

Improved tax morale that comes with measures the government has taken to crack down on tax evasion, such as the introduction of online invoicing, could bring Hungaryʼs tax gap under 10%, Minister of Finance Mihály Varga told state news agency MTI.

Based on legislation in effect from July 1 and enforced from August 1, companies operating in Hungary are required to use software able to automatically forward invoices containing VAT of HUF 100,000 or more to the tax authorities.

Varga said that in the first two weeks after the mandatory practice started being enforced, companies had submitted 7.5 million electronic invoices to the National Tax and Customs Administration (NAV). So far, 272,000 businesses have registered to use the online system, he added.

Mandatory e-invoicing is one of a number of measures Hungaryʼs government has taken to crack down on tax evasion in recent years.