In the battle against the VAT gap, Hungary in July turned its attention to supervising the VAT of sales invoices, by introducing business-to-business transaction level reporting.
Hungarian businesses will be required to report sales invoice data if the total invoice amount is within the following thresholds:
- Invoices with a transferred VAT amount of HUF 100,000 / EUR 320 or more within five days
- Invoices with a transferred VAT amount of HUF 500,000 / EUR 1,600 or more within 24 hours
Furthermore, a direct data connection to the Hungarian tax authority, via a certified software, is required. Also, an invoice must be created no later than the 15th day after the services or goods have been delivered, and finally, reports must be transmitted immediately after the “technical creation” of an invoice.
The Hungarian Tax authority announced a short grace period for the penalties associated with a failure to submit correct reports or reports delivered outside of the allocated time. This grace period was set for 30 days, thus, ending on July 31.
The grace period is now over, and penalties for non-compliance can be issued. However, penalties can be avoided for companies acting in good faith and notifying the tax authority of any delays that are not caused by the taxpayers own negligence.
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