Electronic communication in taxation

Taxation as well as communication with the tax authority cannot elude the development of information technology solutions and the electronic transmission and processing of data. As reported in several of our articles, from 1 January 2018 Hungarian business entities are obliged to use electronic communication and administration channels for official matters at the national tax authority (NAV) (and local governments). Submissions previously made on paper can now be handled electronically. Several new procedures have been introduced.

Electronic communication during tax inspections and other procedures

During tax inspections, taxpayers submit the necessary documents (e.g. authorisations, declarations, documentation, notes, etc.) electronically using ELLUGY forms. The forms are then transmitted electronically, replacing the need to send documents by post. Other documents necessary for specific inspection procedures under the authority of the NAV can be submitted electronically, but it is important to consult with the tax inspectors on the type of forms to be submitted.

The e-paper includes all other procedures that can be launched electronically. With this system you can contact not only the tax authority but also other Hungarian authorities, since it automatically identifies the addressee upon selecting the topic of the procedure. Following identification in the government portal, you are offered the option to freely compose a letter, the response to which will be received in the storage area of the private individual or company involved in the administration.

Means of electronic communication changing

Electronic communication with the tax authority used to be carried out exclusively through the general programme for completing forms (ÁNYK), the prepared returns were submitted through the government portal account opened with the particulars of the authorised person. However, today the form of electronic communication is changing. Use of the business gate is compulsory for Hungarian business entities from 1 January 2018. The business gate is electronic storage space for business entities that they can use for electronic communication with authorities and for downloading necessary documents. Business entities have to register on the business gate, during which they can only authorise private individuals who already have a government portal account to represent the company on the business gate platform. If the business gate registration is successful, authorities can start sending official documents to the storage space. The person authorised to use the business gate is responsible for the documents received, so it is important to keep track of the messages and documents arriving at the storage space.

In 2018 Hungarian business entities can still use their representatives’ or authorised representative’s government portal account to communicate electronically with the NAV. However, they can already send their returns and various other documents to the NAV or other authorities through the business gate as well, at their discretion. Persons authorised to use the business gate may issue and revoke rights to private individuals involved in the electronic communication. From 1 January 2019, however, electronic communication initiated by business entities may only be conducted through the business gate. This is why it is essential to register and designate the authorised administrators as soon as possible if you have not done so yet.

What’s coming next?

In the future, electronic procedures used in taxation and accounting are expected to improve further with the primary goal of automating data processing. Besides, they will also enable faster and more widespread inspections for the national tax authority. The role of IT developments became apparent in online invoicing too, and this is now an inescapable and ever more defining part of accounting and taxation procedures.

If you are curious whether your company currently makes proper use of digitalised options in taxation, please contact us to request a quick and reliable diagnosis.


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