Failure to report online invoice data may result in even heavier penalties than before, as regulations has tightened in Hungary. Therefore, it is now particularly important for the stability and compliance of all businesses to pay special attention to their online invoice data reporting obligations.
What will change in case of failure to report online invoice data ?
Since August 2024, the penalies for failure to report online invoice data have increased from HUF 500 000 to HUF 1 million per invoice. This means that each incomplete or incorrect data reporting could put businesses in Hungary at significant financial risk.
The new tax inspection plan of the Hungarian tax authority and the launch of the e-VAT system are a clear indication that the tax authority will pay particular attention to the quality of online invoice data reporting in 2025. According to information of the Hungarian tax authority, in 2024 such inspections resulted in a loss of nearly HUF 30 billion to the state budget, and the trend shows that the tax authority will carry out even stricter and more targeted investigations regarding failure to report online invoice data in the future.
Why is it crucial to involve a tax advisor?
An experienced tax advisor can not only help you avoid invoicing errors and bureaucratic hurdles at the Hungarian tax authority, but can also support IT developers in integrating invoicing systems. With the introduction of e-VAT and M2M (machine-to-machine) solutions, collaboration between tax and IT experts has become even more important.
Why is this critical for all businesses?
- The e-VAT system provides automatic data reconciliation and as a consequence, there is a risk not only of faulty data reporting, but also of mismatches between VAT return data, online invoice data, data related to imports and online cash register data.
- The digitised tools used by the Hungarian tax authority can detect even the smallest error, be it a clerical error or a data omission.
- The untimely implementation of a single amended law can result in serious financial losses.
- Not only the Hungarian tax authority but also the EU is now paying serious attention to the digitisation of the VAT system for international and local transactions, just think of the draft ViDA.
The role of a tax advisor alongside IT developers
Uncoordinated work between IT development and tax compliance often leads to costly mistakes. As the regulations of the Hungarian tax authority for online invoice data reporting, e-VAT and M2M systems integration show, aligning IT and tax requires a combination of expertise.
Our tax team provides support in the following areas to help you clarify and improve your online invoice data reporting, including avoiding failure to report online invoice data:
- following new legislation and guidelines of the Hungarian tax authority
- monitoring compliance with data reporting obligations
- auditing and ensuring compliance of invoicing systems
- reviewing invoice data reporting, checking that it is complete and compliant with tax rules
- reviewing invoice XML from tax law aspects, preparing any necessary corrections
- interpreting error messages received and suggesting corrections
- transition to e-invoicing to reduce administration
- reconciliation of VAT returns and online invoice data reporting (outgoing, incoming, total)
- establishment of M2M connection
- development of a ready-to-use M2M solution, set-up of e-VAT system
To help you avoid penalties for failure to report online invoice data and meet your obligations, our team of experts is ready to help you ensure the smooth running of your business.
This article provides general information and does not constitute advice.
