We would like to call our clients’ attention to that as from 1 July 2018 the invoicing rules will change in Hungary.
Starting from that date paper based invoices will be greatly discouraged by the government. This means that those companies which will continue using paper based invoices will face administrative difficulties. It mainly means that the company must report its paper based invoice immediately to the tax office if the invoice is issued to another domestic (Hungarian) partner, and its vat exceeds HUF 100’000. In such case the company must report the invoice data on a special tax office maintained website within 5 days. If the vat amount exceeds HUF 500’000 then reporting is to be done within 24 hours.
This will demand significant attention from our clients. Regretfully as the reporting deadline is very short we cannot take over this obligation from our clients.
This will bring additional risk, administration, and possible mistakes in deciding if a particular invoice is to be reported or not, and when it is to report.
To avoid this headache we highly encourage switching from paper invoices to using online billing system.
Online billing systems need to complete this reporting automatically, and therefore you will not need to do anything else.
Before you select a billing system make sure to check in the software documentation that it will automatically carry out the data transfer to NAV’s computer system.