Rules of invoicing continuous transactions: No change!

In our previous information letter you have been informed about the new VAT and invoicing regulations  related to periodically settled (so called continuously fulfilled)  transactions, and the modifications turning into force from 1^st July (date of performance= last day of the relevant period). The planned new rules have been valid only for 3 days, and have been withdrawn by the parliament in the last minute.

In the official Hungarian bulletin (“Magyar Közlöny” No. 2014/91) on 3^rd July the accepted adjustment to the previous modifications about VAT has been namely officially published, and turned into force- legally- from 4th July. According to the final script of the amendment, the previous invoicing practice and processes shall remain, namely that date of performance shall be the deadline of payment.

Further beneficial change in the final version of the accepted amendment is, that this regulation will remain even after 1^st January 2015! So against the script of the originally promoted bill, that meant to postpone the effective date from 1^st July 2014 to 1^st January 2015- based on current information- there will not be any change in the handling and invoicing of the periodically settled (so called continuously fulfilled)  transactions , not even after 01.01.2015!

Due to the late publishing of the modifications, such a case might occur in practice, that within the interim period invoice had to be issued based on the new – but meanwhile already cancelled - rules (sales date= last day of the period). In case of such invoices,  it is advisable to cancel these previously issued invoices (since these rules have been cancelled in the end), and issue new invoices again, based on the final modified rules (Date of performance= deadline of payment)