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Hungary eVAT digital ledgers & pre-filled returns Jan 2024 update

Public consultation on draft law to launch eVAT M2M platform 2024

Builds on RTIP real-time invoicing; initially voluntary pre-completed VAT returns and tax-code mapping service

A public consultation has been launched  on draft legislation for the implementation of the new eVAT transaction digital ledger regime. The consultation should end this month to enable full review by Parliament and passing into law by 1 January 2024.

Hungary’s National Tax and Customs Administration (‘NAV’) is to launch on 1 January 2024 a new platform, eVAT, to enable taxpayers to freely access pre-filled VAT returns. The aims of eVAT are to: lower the costs for taxpayers to comply with VAT obligations; reduce distracting audits; and close Hungary’s VAT Gap. On this last point, NAV is looking to tackle ‘carousel fraud’ which costs Hungary and the wider EU billions in lost revenues each year.

Harnessing Hungarian live invoice reporting RTIP, fiscal cash registers and customs documentation, eVAT will go beyond the OECD SAF-T model adopted in several European countries for the standardised exchange of data between the tax authorities and taxpayers.  Similar to digital ledger regimes in South America and Greece’s myDATA regime, it will mean NAV has a live, complete record of taxpayers’ VAT transactions. It will initially be a VAT transaction-only schema; but long term will be extended to other declaration types.

NAV will also offer taxpayers a set of analytics tool to review and interrogate their VAT data set to help identify trends or errors for further investigation. Long term, as NAV can cross-check taxpayers’ transactions in eVAT, this will be particularly beneficial for taxpayers to understand misreporting of their transactions elsewhere in the supply chain.

In addition to resident Hungarian businesses, eVAT will be open to non-resident businesses with a foreign Hungarian VAT number, providing taxable supplies in Hungary.

Building on success of RTIP live invoice reporting

eVAT is based on the transactional data which taxpayers have been required to submit in real-time on the RTIP regime since July 2018. The requires near live submissions of B2B and B2C sales invoices. It also incorporates data from Hungary’s live cash-register reporting regime.

eVAT will replace the monthly obligation for a Control Statement, ‘M-forms’. This lists all domestic transactions for goods and services for VAT deductions.

NAV is proposing two routes to utilise eVAT, addressing the separate needs and preferences of small and large taxpayers. In both cases, aside from summary-level pre-filled VAT returns, taxpayers will be able to dynamically drill down into transactions to examine and issues. The current manual ÁNYK return filing option will remain in place, too.


1. Small taxpayers – free online access

Taxpayers, or their advisors, will be able to login to a online portal to access their VAT transactional data. From there, they can run basic analytics, supplement any missing transactional information, including adding new invoice transactions, in their NAV ledgers and make amendments where appropriate. They are then able to review and approve a draft VAT return.

2. Large taxpayers – M2M tax code-based assistance

Whilst pre-filled VAT returns present a free and convenient route for small taxpayers, most medium and enterprise taxpayers have more complex business models such as intra-group trading and international transactions. But dealing with these transactions on a frontend can be cumbersome and counter-productive.

To help them, NAV has developed a unique standard tax code map. Large enterprises can map their own ledgers / tax codes to this, can opt to submit full XML transaction details via a newly created API. This will be known as ‘Machine-to-Machine’ or ‘M2M’.

Once received, there is a basic data validation of two types:

  • File structure and format
  • Cross-checking data with other sources and analytics.

Transactions are stored in a data pool, similar to digital ledgers along with collected RTIR, cash register and customs information. After this acceptance procedure the user can move to the preparation of a draft VAT return.

In addition to then being able to access more accurate returns, this process will also automate reconciliations with NAV’s RTIP records. This will enable both sides to readily identify discrepancies, and resolve them, rather than trigger disruptive and costly audit investigations.

Since the data is being exchanged via API, this will open for the first time the opportunity for large taxpayers to interrogate NAV’s transaction records on their activities, and facilitate more readily any differences to be investigated.

Free data analytics tools

To help taxpayers fully understand and cross-check their VAT return data set, NAV is offering a suite of analytical tools.

The online portal will offer plenty pre-defined views for aggregated and itemized browsing (drill-down, slicing-dicing). This covers all three data sources that constitute a VAT declaration: invoices, cash receipts and customs declarations) These views can also be customized and saved as a personal template to use for future work. The UI also includes summary views and a pre-defined VAT analytics view to look at the flagged numbers before making a declaration submission.

The M2M API will both aggregated and itemized query operations for the clients, so they can build any analytics they want from the provided data. This can be done with tools such as PowerBI.

If a taxpayer has completed their data submission, per the analytic tools reporting, NAV is not likely to request further tax information from the tax payer in the case of an audit.

Read more in our Hungary VAT country guide.

Many thanks to Csaba Kocsis, from i-Cell Mobilsoft, in compiling this blog.

 

Europe e-invoicing and live reporting

Country Date Comments (click for details)
EU e-invoice proposals 2030? Digital reporting and e-invoicing harmonisation
Albania Jan 2021 Authorised e-invoice software and pre-clearance
Belgium Jan 2026 Phased introduction of B2B e-invoices
Bulgaria TBC Public consultation on pre-clearance model e-invoice
Croatia Jan 2026 B2B mandatory e-invoicing
Denmark 2024 Digital record keeping obligations
Estonia 2025? Suppliers must offer customers e-invoicing option
Finland Apr 2020 Customer option to require B2B e-invoices
France Sep 2026 E-invoicing and e-reporting for B2B and B2C
Germany Jan 2027 B2B mandatory e-invoicing proposals
Greece 2025 e-invoicing based on exiting myDATA digital reporting
Hungary Jul 2018 RTIR live invoice reporting. No govt pre-clearance required
Jan 2024 eVAT pre-filled returns based on live invoice reporting
Italy Jan 2019 Micro businesses join SdI e-invoicing Jan 2024
Ireland TBC Public consultation underway
Latvia Jan 2025 B2B e-invoices based on PEPPOL
Lithuania ? E-invoicing platform being scoped
Montenegro TBC B2B mandatory e-invoicing preparations
Netherlands No mandate planned Unlikely to adopt domestic reforms
Poland Jul 2024 B2B mandated e-invoicing
Portugal Jan 2024 Certified invoicing software for non-residents
Jan 2024 ATCUD digital invoice signature for non-residents
Romania Jul 2024 RO e-invoicing implementation
Russia TBC Extension of Traceability Model to B2B on hold
Serbia Jan 2023 B2B e-invoicing
Slovakia 2025 B2B and B2C e-invoice rollout
Slovenia 2025 ? e-SLOG B2B proposal stalled
Spain 1 Jul 2017 SII live invoice and book reporting
Spain 2 Jul 2025 Pre-clearance B2B e-invoices; supplement to SII
Sweden TBC PEPPOL based mandatory e-invoicing
Turkey Jan 2014 e-invoice e-Fatura and e-Arşiv
UK Apr 2022 MTD for VAT extended to 1.1million taxpayers

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