Online invoice data reporting

Pursuant to the current legislation, in case invoices are issued with an invoicing program, it is obligatory to report certain data to the Hungarian tax authority on invoices issued between domestic taxpayers. The invoice data should be reported electronically, without human intervention, online, in a pre-defined XML structure and immediately once the invoice has been issued.

As of 1 January 2021, almost every invoices would be subject to online invoice data reporting obligation, without exception to the customer, value or any other restrictions[1].

New taxpayers subject to reporting obligation

As of 1 January 2021, amendments in the VAT Act on the data reporting will enter into force. It is important to know that certain invoice data with respect to sales to non-taxable persons as well as supplies inside and outside the EU will also be mandatory to report in the Online Invoice system. From 2021, the following customer groups can be separated in the Online invoice data reporting:

• Domestic or intra-Community taxable person: name, address and tax number (EU VAT number for an intra-Community customer) have to be indicated on the invoice layout and also during the data reporting.
   
• Non-Community taxable person: name and address would be mandatory to report, tax number is optional, but it is possible to indicate it on the invoice layout and during the data reporting.
   
• Non-taxable and non-private customer: name and address are mandatory on both the invoice layout and data reporting. This category includes, for example, non-economic associations, foundations and associations engaged in public activity.
   
• Private customer: name and address would be mandatory to indicate on the invoice layout, but should not be included in the data reporting.

BDO solutions

Due to the deadlines indicated above, it is essential that the companies concerned start preparations in time to be able to comply with these reporting obligations in accordance with the regulations and within the deadlines.

BDO offers a number of services to its Clients in connection with the online invoice data reporting:

1.    As part of our advisory service, we are happy to support our Clients in answering any IT and taxation questions that may arise during the implementation and/or migration;

2.    In the course of our due diligence service, we review our Client's data disclosure solution and processes, and identify any deficiencies and risks;

3.    Our VAToDO service offers a

• fast
• problem free
• complete
• 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.

During the development of the product, our team paid special attention to the increased protection of data as well as to ensuring maximum compliance with the legislation.

The developed system enables transparent and secure data disclosure.

Our colleagues are pleased to fully assist you and your business in your preparations. Please contact us: tax@bdo.hu.