Effective 1 July 2019, invoices for goods and services must contain certain tariff headings and numbers that apply for value added tax (VAT) purposes.
Legislative changes enacted in 2018 have an effective date of 1 July 2019. As of 1 July 2019, tariff headings (as valid on 1 January 2018 and pursuant to Commission Regulation (EU) 2017/1925) and “TESZOR’15” numbers (as valid on 1 January 2018) must be included, instead of SZJ numbers. There are no transitional provisions in relation to these changes; therefore, for invoicing purposes, the new classification numbers are to be applied as of the date of supply (instead of the invoice issuance date).
Because most billing programs can only apply one classification scheme at a time, using the date of the supply may create certain challenges. However, according to communications from the tax authority, the right to deduction of VAT by the invoice recipient is not expected to be affected if the invoice issuer uses the new classification numbers because neither the TESZOR’15 numbers (for services) nor the tariff headings (for goods) qualify as mandatory invoice elements.
Read a June 2019 report prepared by the KPMG member firm in Hungary
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.