Any business entity that issues invoices with a VAT amount above HUF 100,000 (approx. EUR 320) to another entity VAT registered in Hungary will be required to report these invoices immediately to the Hungarian Tax Authority. Foreign businesses (registered for VAT in Hungary) are also subject to RITR. However, RITR is not applicable to B2C supplies.
Failure to report the invoices in real time mode may attract an administrative penalty of up to HUF 500,000 (EUR 1700) / invoice. This means that affected businesses must make complying with the RTIR legislation its highest priority.
What does this mean potentially to business entities?
Companies need to ensure the proper technical solution for the automated invoice data reporting by 1st of July 2018 at the latest.
If the company uses a billing software(s) or ERP the obligation to send data without delay is set when the invoice is closed (invoice data entered and no longer modifiable, but before sending it to the Client). Reporting of the invoice must be done automatically over the Internet, without human intervention at the point of the closure of the invoice from 1st of July 2018.
RTIR is extended to the hand-written paper-based invoices issued from the pre-printed invoice paper forms as well. Hand-written paper-based invoices need to be reported electronically within 1 calendar day from the issue of invoice, where the VAT on the invoice exceeds HUF 500,000 and within 5 calendar days, where VAT falls within the range of HUF 100,000 and HUF 500,000 (EUR 320- 1,600).
How will RSM Hungary help your real-time invoice reporting?
In order to fulfil your real-time invoice reporting obligation and avoid any negative consequences and penalties upon your request we can provide wide range of services as follows:
- Audit of the corporate invoicing process and invoices issued, checking compliance with the regulatory requirements, and specifying the necessary corrections.
- Execution of NAV registration and data sending testing required for online invoicing.
- Customizing the invoice data process by implementing the RSM ConnecTAX solution integrated with the billing software/ERP.
- Continuous monitoring of invoicing data reporting, monitoring legal changes and implementation of the necessary changes.
If you have a requirement in this area, please get in touch with Angéla Szőke directly or with the IR Global head office for an introduction.