In February, the Hungarian Tax and Customs Authority (NAV) initiated its first data reconciliation procedures in the area of online invoice reporting. The aim of this new process is to help businesses detect discrepancies in NAV’s records in a timely manner, thereby avoiding future penalties or sanctions.
In our previous newsletter (https://wtsklient.hu/en/2025/06/13/failed-data-reporting/), we highlighted that NAV is taking a stricter stance on failures to comply with online invoice reporting obligations, and that even minor administrative errors can now trigger sanctions. More recently, the authority has assumed a more proactive role in oversight, introducing targeted reconciliation procedures to identify inaccuracies.
What should companies pay attention to?
During these reconciliations, NAV primarily checks whether the data submitted by taxpayers matches the data recorded in its system. Affected businesses receive a notification if discrepancies are found in their reporting. Taxpayers then have 15 days from receipt of the notification to correct and clarify the relevant data. After the deadline, NAV will review the submitted corrections and notify the taxpayer of the final outcome of the reconciliation.
Reconciliation procedures are expected in the following areas:
• Discrepancies between reported and fulfilled invoice data
• Anomalies related to VAT deduction rights
What to do if your company receives a notification?
If NAV detects discrepancies, taxpayers may correct the data through self-revision or by amending the invoice reporting. It is crucial to act promptly, as failure to address discrepancies in a timely manner may result in serious consequences, including tax penalties.
It is important to note that participation in the reconciliation process is mandatory for taxpayers. Ignoring NAV’s notification or request may lead to a default penalty. The fine increases progressively: failure to meet the initial 15-day deadline can result in a HUF 300,000 fine. If the second 15-day deadline is also missed, the penalty increases by an additional HUF 100,000. Should the taxpayer fail to respond to the third request within the set deadline, the fine may reach as much as HUF 500,000.
In our article, we highlight the key aspects of the Hungarian Tax Authority’s increasingly intensive data reconciliation procedures. If you have any questions regarding the topics discussed, the experts of WTS Klient Hungary is always ready to assist you with professional support.
This article provides general information and does not constitute advice.
