Hungarian online invoice reporting explained



From January 2021 a new era is starting in the Hungarian online invoicing system. During our webinar on 3rd December we tried to help businesses working in the CEE region to understand the basic principles of online reporting and showcased two possible workarounds from low-entry solutions to high-end ERP integration.


The RTIR (Real Time Invoice Reporting) system affects all businesses registered in Hungary for VAT purposes. The system proposed by the NAV for submitting the online invoice reportings has been in operation since 1 July 2018. The scope of Hungary’s real-time reporting has been extended. From 1 January 2021, reporting obligations will also include invoices issued for domestic B2C transactions in addition to invoices relating to intra-community supplies and exports.


Main RTIR developments for 2021:

  • All resident taxpayers must use XML version 3.0 in their online invoicing reports.
  • Businesses registered in Hungary for VAT purposes will have to report the invoices they issue to individuals (B2C) as well.
  • Businesses must declare export invoices, both intra- and extra-EU.


The Ministry of Finance has granted a sanction-free three months grace period from 1 January to 31 March 2021 allowing businesses more time to comply with these new reporting obligations. This will also help with the transition from the current v2.0 XSD real-time reporting to the latest v3.0 XSD, which will be mandatory from 1 April 2021. For now, it is uncertain if there will be a requirement to retroactively report the transactions not declared during the grace period.


This obligation will affect all businesses registered in Hungary for VAT purposes. Connection with the Hungarian tax authority (HU TA) will take place via the web service. Each user will have to register at the HU TA system and create a technical user in order to send data to the online platform. The HU TA will return a status of each report for invoices sent. The VAT data report will take place immediately and electronically, without human intervention.


There will be another important change from 2021: the European Commission amended VAT regulations allowing Member States to prepare themselves for the introduction of the One Stop Shop (OSS); set to launch on 1 July 2021. The OSS aims to simplify submitting VAT returns (also by not being obliged to register in every EU country) and paying the correct country specific VAT for online retailers in the various Member States where they trade.


During our webinar two experts helped us understand the details and provided useful solutions. László Szabó, co-founder of Growww Digital, Google CZ/SK Certified Trainer for Export invited Lilla Németh, Director of tax services, RSM, one of the dominant market players of the Hungarian consulting community offering accounting and digital tax solutions, and also Balázs Ángyán, CEO of the  the market leading accounting software, Számlá to showcase possible workarounds.


Balázs Ángyán spoke about Third-party invoicing and self-invoicing.  This service is recommended for those who have too many vendors, and the invoices issued to the company are filled in incorrectly too often, or who employ agents and pay them commissions on a monthly basis. He also spoke about another e-commerce solutions: the Invoice Agent. It is a non-browser-based interface of the Számlá system, and it receives XML messages and depending on the received information. It can create invoices, reverse invoices, register credit entries, query invoice pdf files, query invoice xml files, etc. With API documentation easy to connect with your webshop, it results in significant cost savings, plus there are no errors, therefore you do not need to make corrections subsequently. Through API you only need to provide the billing data and with that information Számlá will create an invoice for you that complies with the regulations, send it to NAV and forward the data in XML and PDF to the webshop. 


Lilla Németh, Director of tax services at RSM introduced their company’s online invoice reporting solution. Their cloud-based platform, Connectax solutions and software modules are easily and quickly connectable to partners’ current ERP, accounting and invoicing systems.


In case you maintain your current invoicing program, RSM advise you how to adjust your currently available XML file of your sales invoices, thus you will be able to fulfil the HU TA requirements. RSM has also an IT software solution: you send us the proper XML file and their software will communicate directly with HU TA, save the feedback and let you know the status of the online reporting.


If you are interested in more details, you may watch the entire recording of the webinar below.


YouTube video