e-VAT reloaded!
The Hungarian National Tax and Customs Administration held a consultation with businesses this week as the next milestone in a series of public consultations on e-VAT, in which VGD Hungary’s tax experts actively participated. The aim of the development is to create a machine-to-machine (M2M) connection that will allow businesses using accounting software to become part of the e-VAT system.
What options will be available for VAT return submission?
In the future, three options will be available to submit a VAT return:
1. in the usual way via the ÁNYK client program;
2. via the e-VAT interface;
3. via the machine-to-machine (M2M) connection.
The taxpayers can choose which option to use to submit their VAT return. This means that for the time being, neither the e-VAT interface, nor the M2M connection will be mandatory. Companies will therefore not have to notify their choice of submission method. However, for the returns submitted, the tax authority will be able to query the method of submission.
When does e-VAT start?
According to the tax authority, the e-VAT system will be fully operational when it is available to all economic operators. This requires the possibility of M2M connectivity. The introduction of the e-VAT system is not only in the interest of the tax administration; it will also benefit businesses.
The Hungarian National Tax and Customs Administration has not yet announced the exact deadline, but the specification is expected to be finalised in 2022. Development and implementation will take place in 2023.
What are the expected developments in the M2M connectivity?
The National Tax and Customs Administration will develop a fixed standard code list for all types of transactions, which will contain the necessary codes for each transaction. This code list must be integrated into the accounting software together with the eÁfa M2M XML. In contrast to the Online Invoice Data Supply System, the M2M link can be flexibly integrated into the accounting software, there is no mandatory place to insert the functionality and the frequency of data delivery can be set by the user.
The sample XML specifies the standard form and data content of VAT analysis. It is recommended to use this standard VAT analysis, as defined by the NAV, because it will contain all the information that the tax authority may request from the taxpayer during a tax audit. This will reduce the taxpayers’ administrative burden.
Why should you use M2M connectivity?
The most important new feature is that the VAT returns submitted via M2M and the e-VAT interface will undergo a preliminary validation by the National Tax and Customs Administration, which will facilitate compliance. The validation process will include checks that currently only take place after the VAT return has been submitted, and in the case of any errors found results in a subsequent request for correction by the tax authorities. Due to M2M connectivity, any administrative errors will be corrected before the VAT return is submitted.
The aim of the system is to establish a link between machine and human knowledge in the most efficient way possible.
6 Oct, 2022
* * *
Should you have any questions regarding this newsletter,
the tax experts of VGD Hungary will be pleased to assist you.
This newsletter provides general information and does not constitute tax advice.
