Hungary: VAT penalty relief, invoice reporting requirements effective 1 July 2020 (COVID-19)
Hungary: VAT penalty relief, invoice reporting
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
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