Receipt reporting obligation
As of 1 July 2018, a report must be sent to the tax authority on all invoices with a VAT content of HUF 100,000 or more, in the format and manner specified in the law.
At the beginning of December 2019, the Parliament adopted T/8015 law implementing certain tax measures of the More Competitive Hungary Program. The President of Hungary proclaimed the bill as “2019. Act C on the Amendment of Acts Implementing Certain Tax Measures of the Program for a More Competitive Hungary”.
Accordingly, it extends the previously introduced online reporting obligations as follows:
- As a first step, from 1 July 2020, regardless of the amount of tax transferred to the invoice, data shall be provided for all invoices issued to a domestic taxable person in respect of a domestic transaction, except for the tax-free supply of goods within the Community.
- As a second step, from 1 January 2021, the amendment will extend the reporting obligation to invoices issued to non-taxable persons as well as to taxable persons for tax-free supplies of goods within the Community (with a few exceptions).
The amendment also determines that the extended (unlimited) reporting obligation per invoice for incoming invoices (on declaration details sheets) must be fulfilled from 1 July 2020, and in the case of invoices issued using a printed form, it must follow the 5-day reporting obligation. It reduces the deadline to 4 calendar days, if the transferred tax does not exceed HUF 500,000.
According to the change defined as the “first step” – which must be applied within six months – not only domestic companies that issue invoices with a VAT content of HUF 100,000 or more are affected, but the provision of data is mandatory after all domestic invoice issues!
With regard to invoices issued by machine, it is still true that the invoice data must be uploaded to the National Tax and Customs Authority (NAV) system at the same time as the invoices are issued, at most taking into account the delay in the technical process. In the event of a system failure, the data must be sent when the connection is re-established or within 24 hours of it. The tax authority monitors all invoices in its IT system and imposes severe fines on the invoice issuer in the event of a failure or significant delay in providing data.
In addition, the Authority has defined a new API documentation, the “Online Invoice 2.0 System Interface Specification”, which differs significantly from version 1.1 under the current regulations. The deadline for implementation must be mandatory before the entry into force of the above amendment, starting on 1 April 2020.
The current and future version 2.0 can be freely downloaded after registration from https://onlineszamla-test.nav.gov.hu.
Considering the proximity of the planned changes, the turnaround time of the changes required in the corporate governance system and invoicing module, as well as the time to be spent on establishing and testing the online connection, it is advisable to prepare for the changes as soon as possible.
Automatic data transmission: SRS OSZI
The SRS OSZI (online invoicing interface) automatically transmits the data required for data provision to the National Tax and Customs Authority (NAV) system in the prescribed format and at the appropriate time.
The complex application developed in 2016 serves two purposes:
- Convert and merge invoicing information from (virtually any) corporate data source to XML files based on the XSD schema definition defined by the tax authority,
- Establish a Web Service REST API connection with the authority’s servers and regularly send, display, verify, and track previously converted data.
We have further developed this solution to be able to
- send online invoicing information from an invoice issued to any customer with a domestic tax number,
- meet the requirements of the new API documentation, the “Online Account 2.0 System Interface Specification”,
- comply with the requirements for the reporting of invoices issued to non-taxable persons and to taxable persons for the supply of goods tax-free within the community.
The OSZI v2.0 system can be installed in your IT environment (no hardware needs to be purchased), and with the help of a simple browser you can conveniently monitor the operation or the system can be managed from there. Together with the central monitoring system, SRS Support, it conveniently provides the service you rightly expect – all embedded in your IT environment.
You can track it all in a user-friendly web interface.
The application is not directly connected to the background database of business administration or other systems, in this way it can comply with both local IT regulations and the requirements of the Hungarian legal environment.
How the system works
The customer’s IT infrastructure (ERP, invoicing system) provides OSZI with the source files created from the invoices. From these, the converter module creates a compliant NAV 3.0 XML file, which is also sent by the communication module to the tax authority (NAV) via an encrypted, secure channel. By default, a full backup is made daily on the server serving the OSZI, which is stored for 10 days. In the event of an invoice or system failure, a notification will be sent to the email addresses provided for this purpose. The SRS help desk team also receives emails with errors so we can help users in a timely and substantive manner.
In the OSZI web interface you can:
- change application settings (e.g. set amount limit), add users to application,
- view log files and error status analyses
- display events in the application in chronological order,
- filter the data you want to view,
- view the results of the formal and content control of the data files, the result of the official validation,
- query the account data sent to the NAV server,
- check the status of the upload,
- invalidate the data provision.