Electronic Invoicing in Hungary
Is e-invoicing mandatory in Hungary ?
Hungary has adopted a post audit invoicing model but has continued to pioneer the adoption of a CTC method in the EU with its introduction of mandatory real-time e-invoice data reporting.
An e-invoice must be accepted, provided its I&A can be guaranteed from the point of issuance until the end of the storage period. In Hungary this can be done by means of Qualified Electronic Signatures, business controls, and ensuring a reliable audit trail linking an invoice to a supplier and proper EDI.
Business-to-Government (B2G) is not mandatory. However, Hungary has transposed Directive 2014/55, therefore contracting authorities should accept e-invoices if the invoice origin, authenticity, and content integrity are guaranteed.
Business-to-Business (B2B) is not mandatory but allowed. However, in practice there is a trend towards the adoption of an e-invoicing model due the implementation of Reporting Time Invoice Reporting (RTIR). The new reporting mandate simplifies the actions of invoicing, enabling companies to use the reported XML files as e-invoices, and that could become a real time e-invoicing.
From January 2021, all B2B and Business-to-Consumer (B2C) transactions must be reported to the Hungarian Tax Authorities in real-time, regardless of the transaction amount.
The National Tax and Customs Administration of Hungary (Nav Nemzeti Adoes Vamhivatai) uses a system called KOBAK for this purpose.
Since April 2021, the NAV Online 3.0 became mandatory, allowing invoice data in the XML file format to go directly to NAV system. The file is then available to customers as an e-invoice, instead of sending an invoice and simultaneously reporting the data to the tax authorities.
Want to learn more about e-Invoicing compliance?
Download our Global e-invoicing and Tax Compliance fact sheet here for more information.
Archiving
Invoices must be stored within the territory of the European Union. Each taxable entity must provide information on where exactly it stores its invoices, as well as other documents. This rule must always be applied for electronic invoices and those in paper form alike, whether they are stored in the country or in another member state.
Invoices may be moved to other locations for posting and processing, but upon request by the tax authority, they must be provided within three business days. The storage period is 8 years from the end of the fiscal year.
Want to know more about Basware’s archiving services?
Download our Basware Vault fact sheet here to learn more about our flexible and scalable solution.
Basware Services
Invoice receipt with PDF e-Invoice and Smart PDF is supported to Scan and Capture and Cloud Scan with Basware Validation.
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Interoperability
Basware has a local partnership with First Business port CEE, working as the local Interoperability partner in Hungary.
Our advice
Hungary will increasingly rely on electronic invoices in the future, so it is advisable to connect larger suppliers with electronic invoices. For smaller suppliers, paper, and PDF can still be used.
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