Hungary: Reconsideration of electronic VAT system to machine-to-machine concept

Intended to be introduced in a similar way to the electronic personal income tax return

Electronic VAT system to machine-to-machine concept

The National Tax and Customs Administration (NAV) has reconsidered the concept of the electronic value added tax (VAT) system, which was intended to be introduced in a similar way to the electronic personal income tax return (eSZJA).

In the electronic VAT M2M (machine-to-machine) concept, the corporate governance system or other software used by the taxpayer (or its accountant) can provide VAT return data directly to the NAV via application programming interface communication. The communication is similar to the online invoice system.

The purpose of the M2M system implementation is to:

  • Simplify the VAT declaration process, providing a more modern communication channel
  • Provide taxpayers with access to various queries and validations, thus reducing the possibility of declaration errors

Query services include:

  • Queries of online invoice data
  • Queries of import VAT data
  • Partner classification by NAV
  • Queries regarding tax accounts

Read an October 2022 report prepared by the KPMG member firm in Hungary

 

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