A unique innovation in Europe and complete exemption from penalties for the online data reporting obligation extended from 1 July
As reported in our previous newsletter, significant changes will take effect in online data reporting obligations on 1 July 2020. Based on the change in legislation, all invoices issued to buyers that are resident taxpayers must be reported to the Tax Authority regardless of their value starting from 1 July.
To make it easier to meet this reporting obligation, the National Tax and Customs Administration (NTCA) has developed an Online Invoice mobile application that is available to anyone and can be downloaded for free from the IOS App Store and Google Play. The application requires a smartphone running at least Android 7.0 or IOS 11. This development of mobile application can be considered unique in Europe, as no European tax authority has started such development outside Hungary until this date.
Using the application, taxpayers have a number of query options, and it is also possible to modify or cancel invoices. As the application supports electronic invoicing, it is also possible to deliver the authentic documents to customers without contact.
With regard to the current epidemic situation and NTCA's customer-friendly approach, NTCA will not impose a penalty until 30 September on companies that do not comply with this new reporting obligation arising from the removal of the previous HUF 100,000 threshold. The condition for exemption is that the taxpayers subject to the obligation register in the Online Invoice system before issuing their first invoice. This means that until the above date the Tax Authority will not impose penalty on those failing to meet the new reporting obligation.
The range of the data reporting obligation will be further expanded in 1 January 2021 because, from then on, there will be an obligation to report data of all invoices i.e. not only those issued to resident but also to non-resident taxpayers.
To make it easier for you to meet your online data reporting obligation, we recommend that you use the VAToDo service provided by BDO Hungary which offers a quick, complete and turnkey solution to our Clients in order to reduce their administrative burden after implementation and to provide data transfer with the help of a fully automated, secure system.
If you have any questions about our services, feel free to contact us at the e-mail address tax@bdo.hu.