As of July 1, 2018, a VAT Reporting System RTIR for invoices issued comes into force in Hungary, which will be mandatory for bills with over 100,000 HUF (approx. EUR 320) in VAT. The ruling will also affect foreign companies registered in Hungary for VAT purposes.
The VAT data of the invoices issued must be declared in real time electronically to the NTCA (National TAX and CUSTOMS Administration). Meanwhile, the government has set up a website called Online Invoice System for users, where they can access all the information and get ready for this new system (RTIR).
This new system will affect the internal procedures in companies when registering and preparing the information to be sent. Carrying out these tasks for each invoice received can mean spending a large amount of human resources and time on these tasks. But there are technological solutions that can guarantee compliance with the immediacy demanded by the regulation.
The main features of the system will be as follows:
Each user must register in the NAV system and create a technical username.
VAT data reporting takes place immediately electronically, with no human intervention.
The XML format is established for submitting the invoice data.
Connection with the Hungarian Tax Authority (NAV) will be via web service. The NAV returns a status report on each invoice sent.
Fines imposed may amount to HUF 500,000 (EUR 1700) per invoice.
The EDICOM solution fully automates communication with the NAV, both for sending the invoice reports and integrating the NAV responses in the ERP. Our solution can transform the data from any management system: SAP, Microsoft Dynamics, Sage, etc. Implementing the solution takes place in the cloud, so there is no need for any local installation by the client, with security and confidentiality of the transmitted data guaranteed, thanks to the different Information Security certificates held.
EDICOM, as a specialized technological partner, is able to perform the entire process automatically to avoid major changes in the in-house procedures of companies. The flow would take the following steps:
Data capture: Edicom’s solution automatically takes the invoice data required by the administration from the client’s ERP.
Generating the structured XML file.
Connection with the Hungarian Tax Authority: Automates forwarding of the previously validated file for registration and authorization by the administration.
Reception and archiving of acknowledgments and integration in the ERP.
The entire process is automatic, performed in a matter of seconds and totally transparent to the user. This means that accounting and admin departments can continue to work from their usual management systems.
In addition, the EDICOM Platform is not only ready for e-VAT returns, but also for e-Invoicing and any other business or tax communications.
e-VAT spreading throughout EU
Hungary will implement a system with a background in the European Union. Spain developed the SII Immediate Information Sharing system for the declaration of VAT books electronically, which came into force on July 1, 2017.
In this case, the difference is that the Hungarian system will only affect invoices issued and the deadline for sending the information must be the same as the time that the invoice is generated in the ERP, so that communication is immediate and without any manual intervention.
Lithuania has rolled out a smart tax administration system designated i.MAS. This modernization initiative is based on three areas: the e-waybill (i.VAZ), e-invoicing and VAT returns (i.SAF), and the electronic tax audit (i.SAF-T) file.
In Poland, the Ministry of Finance requires taxpayers to declare their VAT records electronically through the JPK_VAT file. The JPK_VAT file, which includes the company’s purchases and sales VAT records, must be submitted by day 25 of each month.
Our Global VAT Compliance Expert Analysis (available in English and Spanish) is a resource for companies operating in several countries or intending to do so. Through it, you can find out how the indirect tax VAT works, how it is regulated and what its implications are both for companies and tax authorities.