Under value added tax (VAT) changes that are effective 1 July 2020, all invoices issued to Hungarian domestic taxpayers must be reported online to the tax authority; thus, the current threshold of HUF 100,000 for electronic reporting will cease to apply.
However, certain relief is being made available. According to a 2 June 2020 statement by the State Secretary, the tax authority will not levy penalties on taxpayers that are not capable of meeting the new reporting requirements until 30 September 2020.
In any event, taxpayers that previously were not required to provide such data need to register with the tax authority's official online reporting system before the issuance of the first invoice (that is, before 1 July 2020) in order to be eligible for the penalty relief.
The grace period and delayed effective date are being provided as relief measures in response to the coronavirus (COVID-19) pandemic.
Relief from penalties only applies to new requirements effective from 1 July. In instances of non-compliance regarding invoices above the HUF 100,000 threshold, the tax authority may still impose penalties.
Read a June 2020 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.