2025 changes to M-Sheet (M-form) domestic purchase invoice reporting
Hungary is undergoing a significant digital transformation in its VAT reporting system, centred around the evolution of the M-sheet (domestic recapitulative statement). This will long-term be modified further by the EU VAT in the Digital Age reforms.
See more in our Hungary VAT guide. VATCalc application is able to determine transaction to be included in the M-Sheets, and produce the report in our VAT Filer product.
M-sheet recapitulative statement
The M-sheet has long been used to detail purchase domestic invoices from taxable suppliers to the Hungarian Tax Authority (NAV) that form the basis for VAT deductions. However, under the 2025 rules, companies must now report exact net and VAT figures in Hungarian forints—replacing the previously allowed rounding methods. These changes ensure that M-sheets precisely align with data submitted through the NAV Online Invoice System, Hungary’s real-time electronic invoice reporting platform.
Information required:
- Supplier’s VAT number;
- VAT amount and % used;
- invoice number; and
- tax point date.
This shift began in July 2020, when Hungary abolished the prior HUF 100,000 VAT threshold for both online invoice reporting and M-sheet inclusion. Now, all domestic invoices where VAT is deductible must be reported—regardless of the invoice value. This includes reverse-charge invoices and VAT-exempt transactions, making the system comprehensive and fully visible to the Hungarian Tax Authority (NAV).
Hungary eVAT regime can lift M-Sheet obligations
A cornerstone of the system is the NAV’s automated reconciliation process, which cross-checks M-sheet entries against data received from invoice issuers via the online platform. This powerful risk analysis tool can detect even minor discrepancies. When mismatches occur—whether due to incorrect data in a company’s accounting system or errors from business partners—NAV may initiate compliance audits or reconciliation requests. Businesses are encouraged to perform internal checks and determine, based on invoice layout, whether their own data or NAV’s data should be treated as correct.
To simplify compliance and reduce errors, NAV is promoting the adoption of its eVAT system, which can exempt taxpayers from M-sheet obligations by leveraging pre-filled VAT returns generated from online invoice data.
The transformation is also technological. The autumn tax package of 2019 significantly expanded reporting obligations and introduced real-time digital submissions. Since January 2021, the requirement extended to all invoices involving Hungarian VAT—even those with private individuals or foreign entities—excluding only transactions under the MOSSscheme or with non-taxable EU persons.
To support businesses, NAV developed free invoicing software and a mobile app, especially for smaller entities not using integrated accounting systems.
Since the start of 2025, all companies must update their systems to fully comply with the exact data reporting requirements. Though M-sheets remain relevant for older returns, real-time digital reporting and automated reconciliation are rapidly becoming the norm in Hungary’s VAT compliance landscape.
