In the first article of our two-part series on electronically transmitted invoices, the rules of invoicing and online data reporting in Hungary, we looked at the definition of electronic invoices, the conditions for issuing and accepting them and the statutory obligation for archiving such documents. In this second part, we review the regulations pertaining to the data content of invoices, and summarise who are subject to online data reporting and how they can fulfil this obligation.
Mandatory data on invoices
Regardless whether issued by invoicing software, or filled out manually from a printed invoice book, or as an e-invoice, invoices must always comply with the provisions of the VAT Act. The mandatory data content of invoices based on the effective provisions of the Hungarian VAT Act is as follows:
- date of issue of invoice
- date of performance, if different from the issue date
- invoice number
- issuer’s name, address and tax number
- customer’s name, address
- customer’s tax number (for reverse charge transactions, tax-exempt intra-community transactions and for invoices issued for resident taxpayers if the VAT reaches or exceeds HUF 100,000 – roughly EUR 308)
- description and amount of goods / services supplied
- net unit price (without tax) of goods / services supplied
- net value of invoice
- percentage and amount of VAT
- classification of goods / services supplied (customs tariff codes, SZJ, TESZOR codes)
- payment method
- payment deadline
Provisions on data content of invoices in particular cases
In special cases, such as invoices issued in foreign currencies, reverse charge transactions, tax-exempt intra-community transactions, cash accounting or self-billing, the provisions of the Hungarian VAT Act prescribe other mandatory data as well:
- for invoices issued in foreign currencies, the amount of VAT in Hungarian forints
- for reverse charge transactions, i.e. if the buyer of the goods/user of the services is the one liable for the VAT payment, the expression “fordított adózás” (reverse charge) shall be added
- for tax-exempt intra-community transactions, a clear reference to the fact that the supply of the goods / services is exempt from tax
- indicating the phrase “pénzforgalmi elszámolás” (cash accounting) if the taxpayer opted for cash accounting
- indicating the phrase “önszámlázás” (self-billing) if the invoice is issued not by the seller/provider (supplier) of the goods/services, but by the customer/user (buyer) of the goods/services
- in the case of newly-acquired means of transport supplied in the EU without charging VAT, the technical specifications of the vehicle
- indicating the phrase “különbözet szerinti szabályozás – utazási irodák” (margin scheme – tour operators) for the supply of travel organisation services
- indicating the phrase “különbözet szerinti szabályozás – használt cikkek” (margin scheme – second-hand goods) for the supply of second-hand movables
- indicating the phrase “különbözet szerinti szabályozás – műalkotások” (margin scheme – works of art) for the supply of works of art
- indicating the phrase “különbözet szerinti szabályozás – és régiségek” (margin scheme – collectors’ items and antiques) for the supply of collectors’ items and antiques
- if using a fiscal representative, the fiscal representative’s name, address and tax number
Deadline for issuing invoices
In general, invoices have to be issued within 15 days of performance (in the case of advance payments, the day the amount is credited qualifies as the performance date). If payment is made in cash or with non-cash payment instruments, however, the invoice has to be issued immediately. In the case of tax-exempt goods supplied within the community, and services where the user of the service is liable for the VAT, the invoice must be issued no later than by the 15th day of the month following the performance.
Online data reporting
The online data reporting obligation was introduced in Hungary as of 1 July 2018. The issuer of the invoices is liable for reporting the data in the case of invoices issued to resident taxpayers with a VAT content equal to or more than HUF 100,000 (roughly EUR 308).
If the invoice is issued by invoicing software, the software must have a built-in function to fulfil the immediate data reporting obligation prescribed.
If invoices are issued manually from a printed invoice book, the data must be reported by the issuer of the invoice – generally within five calendar days. If the VAT content of an invoice issued manually exceeds HUF 500,000 (roughly EUR 1,538), the data must be reported the day after the invoice is issued.
Upon failing to comply with the data reporting obligation outlined above, or submitting reports that are incomplete, include mistakes or have false data, a default penalty of HUF 200,000 (roughly EUR 615) per affected invoice may be levied on private individuals, and HUF 500,000 (roughly EUR 1,538) per affected invoice on other taxpayers.
The accountants at WTS Klient Hungary have more than 20 years’ experience in helping the most varied types of client in accounting their invoices, and are as prepared as they can be to handle the challenges of online data reporting. We look forward to hearing from you should you need a reliable team of accountants to provide solutions specifically tailored to your and your company’s needs.