CONSEQUENCES OF DIFFERENCES BETWEEN
ONLINE INVOICE REPORTING AND VAT RETURNS
Have you experienced a difference between online invoice reporting and VAT returns? Warnings for now, harsh penalties later can be expected!
The Hungarian Tax Authority’s risk analysis system monitors and compares the data reported in VAT returns with that in the Real-Time Invoice reporting system. As a result of this examination, over 3,000 businesses were notified in October due to detected discrepancies.
The Hungarian Tax Authority's attention is primarily focused on the discrepancies between the data content reported in the RTIR (Real-Time Invoice Reporting) and the data content reported in the VAT returns' “M” forms. In the recent autumn tax package, the legislator introduced a new audit type specifically allowing the Tax Authority to examine these data reports.
For the time being, the Tax Authority has notified the companies with a supportive intention, which gives the companies the opportunity to correct the mistakes and prevent similar issues in the future.
Since the Tax Authority's system compares the data of the issued invoices (real-time invoice reporting of the invoice) with the data reported on the receiving side (“M” sheets forming part of the VAT return), necessitating a review of data submissions on both the issuing and receiving ends.
After discovering the errors, we recommend prompt correction of any detected errors, because ignoring the notification may result in official proceedings.
As of 1 August 2024, the general rate of default fines for non-compliance or incorrect compliance with invoice data services has increased to HUF 1.000.000 per invoice. (For our previous article on this topic, see: https://vgd.hu/en/news/professional-publications-newsletters/stricter-real-time-invoice-reporting-and-transfer-price-fines-from-august-1)
For the future, the Tax Authority envisions the eVAT system as the solution, offering beneficial features for businesses that promote a faster and more accurate VAT return filing process.
If your company has received such a notification, or if you would like us to carry out a full internal audit to highlight any errors or omissions in invoice data submissions, please feel free to contact us confidently.
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If you have any questions about this newsletter, please do not hesitate to contact our tax advisory colleagues!
This newsletter provides general information and does not constitute advice.