There are less than 4 months left until the start of the real-time data supply obligation! Mazars has launched a series of newsletters to inform its clients concerning the latest developments and the most important rules of the real-time data supply. We hope that you will find this information helpful in your preparation for online invoicing.
In the second part of our series, we will answer the question who need to provide information and for what transactions in the framework of the real-time data supply. The data supply obligation applies to taxable persons registered in the domestic territory. This means that the obligation also subjects to only VAT registered taxpayers in Hungary and they must also supply data, despite the fact they typically issue their invoices from abroad, with the use of foreign invoicing software.
To decide whether an invoice issued is in fact subject to the data supply obligation, the following two conditions should be examined:
- does the invoice issued include VAT in the amount of 100,000 or more?
- is the buyer a taxable person registered in the domestic territory (in Hungary)?
If the answer to the above two questions is yes, there is data supply obligation on the given transaction.
Consequently, the system is essentially aimed at B2B transactions; in other words, in case of invoices issued to private individuals who are not tax subjects there is no data supply obligation. In addition, there is no mandatory data supply for transactions that are exempt of VAT, subject to the reverse charge mechanism, or invoices issued to subjects of the simplified entrepreneurial tax (EVA) either. The legislator, however, did not exclude the possibility of optional data supply for these cases, also including invoices below the limit threshold. This means that a development of the invoicing software that would, for example, automatically supply online data on domestic, reverse charged VAT transactions to the servers of the National Tax and Customs Administration would be acceptable.
It would appear, however, that data cannot be supplied even optionally when issuing an invoice with more than HUF 100,000 of VAT to a tax subject that only has a foreign tax number, since the systems of the tax authority are not currently prepared for interpreting such information.
If you have questions any questions concerning the rules of online invoicing, or need technical assistance in the course of the development efforts, your Mazars contact will be pleased to help.