Certain reporting obligations under Hungary’s electronic trade and transport control system (EKAER) have been reduced beginning 2021. However, almost all invoices with a Hungarian value added tax (VAT) number trigger a real-time reporting obligation.
The Ministry of Finance in late December 2020 published guidance (Decree no.13/2020. (XII. 23)) as new rules under EKAER. The decree, effective 1 January 2021, reflects:
In parallel with the new decree, there are changes regarding the tax rules that apply for penalties. Based on the amended regulations, the tax authority may only impose a penalty of up to 40% of the value of the consignment for a failure to register in EKAER. Also, an improper EKAER registration is subject to a default penalty of up to HUF 500,000 (for taxpayers).
Under the new rules, real-time reporting applies to 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 tax authority highlighted reportable and non-reportable transactions; for example, those to be reported include:
The scope of the reportable data is generally in accordance with the rules for what must be included on invoices pursuant to the Hungarian VAT law. However, in certain situations, additional data is required; for example, when the invoice amount is expressed in a currency other than HUF, the currency and the applicable exchange rate must also be reported. If the invoiced transaction falls out of territorial scope of the Hungarian VAT law, this also would be reportable information.
Regarding non-taxable private individual customers, the data reported is not required to include the name and address of the customer. If there is doubt regarding the customer's status as a taxpayer, this can be verified by a declaration issued by the customer.
The data reported on a final invoice (after advance payment) must indicate the difference between the advance payment and the total amount. This obligation also applies to the recipient of invoices in their domestic sales listing (as a part of the VAT returns).
A grace period—from 4 January 2021 to 31 March 2021—has been provided, and penalties are not to be levied if the taxpayer fails to meet the newly introduced reporting requirements. The grace period applies on condition that the taxpayer is registered in the real-time reporting system.
An “invoicing decree” (Decree no. 23/2014. (VI. 30.) NGM) was also amended, with an effective date of 4 January 2021.
One of the changes aims to support electronic invoicing (e-invoicing) by introducing an option that enables taxpayers to satisfy their real-time reporting obligations 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, taxpayers that are exempt from using a cash register in issuing invoices will no longer be obliged to report invoices on a PTGSZLAH data sheet (as the tax authority will receive the required information through the real-time reporting).
The amended decree withdraws a requirement for registration with the tax authority's invoicing system (the former system “SZAMLAZO”).
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