As anticipated in our previous Tax Alerts, the extent of obligations in regards of EKAER, the Electronic Trade and Transport Control System, starting from the beginning of the year have been reduced. Meanwhile, almost all invoices issued under a Hungarian VAT number trigger a real-time reporting obligation.
The Ministry of Finance published Decree no.13/2020. (XII. 23) on new regulation of EKAER on 23 December 2020. The Decree entered into force on 1 January 2021. Notable changes:
Based on the new rules, the real-time reporting obligation covers almost all invoices issued under a Hungarian VAT number, including invoices issued to non-taxable persons (e.g. private individuals) and invoices for Intra-Community and export supplies. The guideline, recently published by the Tax Authority, highlights the transactions which follow.
Those to be reported:
The scope of reportable data is generally in accordance with the mandatory content of invoices, as set out according to the Hungarian VAT Act. However, in certain cases additional data are required by law. For example, where the invoice amount is expressed in a currency other than HUF, the currency and the applicable exchange rate are to be reported as well. If the invoiced transaction falls out of territorial scope of the Hungarian VAT Act, this is also considered reportable information.
At non-taxable private individual customers, the data reported is not required to contain the name and address of the customer. If there is doubt regarding the customer's status as a taxable person, this can be verified by a declaration issued by the customer.
The reporting of the data of a final invoice (after advance payment) must include the difference between the advance payment and the total amount as well. This obligation also applies to the recipient of invoices in their domestic sales listing (as a part of the VAT returns).
The Tax Authority provides a grace period, from 4 January 2021 to 31 March 2021, and does not levy penalties if the taxable person fails to meet the newly-introduced reporting requirements. Please note that the grace period applies on condition that the taxable person register themselves in the real-time reporting system.
Other rules on invoicing reporting
Invoicing decree [Decree no. 23/2014. (VI. 30.) NGM] was also amended with an effective date of 4 January 2021.
One of the changes therein aims to support e-invoicing by introducing an option that enables taxpayers to fulfil their real-time reporting obligation by sending e-invoices to their (taxable) customers with a hash code via the Tax Authority's real-time reporting system.
In connection with the extension of real-time reporting, taxable persons who are exempted from using a cash register in the issuing of invoices on their supplies will no longer be obliged to report invoices on a PTGSZLAH data sheet (as the Tax Authority will receive the required information of the respective invoices through the real-time reporting anyway.)
The amended decree abolishes registration with the Tax Authority's invoicing system (formerly ‘SZAMLAZO’ data sheet).
We remain at our clients' disposal regarding any queries arising in relation to the changes.
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