Second postponement for pre-completed VAT returns due to ongoing COVID-19 crisis; no clear plans to set implementation date
The Hungarian tax and customs authority, NAV, suspended the introduction of pre-filled VAT returns, eVAT. Based on real-time RTIR invoice reporting regime introduced in July 2018, eVAT, had already been delayed from the Q3 accounting period beginning 1 July to Q4, starting 1 October.
This move is due to the ongoing COVID-19 crisis. and will continue as long as the country remain in official state of emergency. It is unclear when the measure will be reintroduced.
Hungary is to join Italy and Spain in offering taxpayers pre-completed VAT returns – eVAT
NAV is promising in the future a richer data service with the delay, with a phased introduction now under consideration to enable taxpayers to better prepare for the (initially) optional pre-completed returns. This will include improved systems interoperability to exchange data between NAV and accounting systems, including fiscal cash registers.
Taxpayers would be able to review their draft return, and M SHEET domestic invoice statement, online and make any adjustments they wish. They must meet the regular VAT submission deadline of 20th of the month following the quarter end.
Since import VAT will not be included until at least January 2023, this will need to be added alongside any missing sales or purchase invoices. At the same time, if a draft return shows purchase invoices the taxpayers does not recognise or things there is an error, then they must reconcile this with their suppliers.
Initially, adoption of the returns will be voluntary. Taxpayers may opt to continue preparing and using their own return processes.
Following the inclusion of B2C invoices in the Hungary live transaction reporting rules RTIR from 1 April 2021 (voluntary for quarter 1 2021), the Hungarian National Tax and Customs Administration (NAV) is starting to compile drafts from the submitted data.
Italy pre-completed VAT returns are due to start in January 2022. Spain’s Agencia Tributaria extended to all taxpayers its draft VAT return tool, Pre303, in February 2021. It was already available to businesses using the SII live reporting regime. Check out the countries that have implemented pre-filled VAT / GST returns around the world.