Era of eVAT - Real-time Data Reporting is Needed!

As of January 1, 2024, the National Tax and Customs Administration launched the new eVAT service,
heralding a new era in the modernization and digitalization of VAT returns.

The key role of Real-Time Data Reporting for Companies in the eVAT proposal

The National Tax and Customs Administration publishes data available to companies in the form of a VAT return (as a draft) on the eVAT platform. The data file, i.e., the VAT return prepared by the NAV, summarizes the data from the following reports:

• online invoice data reports,
• data from online cash registers, and
• data from customs decisions related to product imports.

It is evident from this that the proposed eVAT draft heavily relies on real-time data reporting from companies. It is important to highlight that in the eVAT report, data related to sales can only be corrected by amending the Online Invoice report. In light of this, it has become increasingly important to ensure that data reporting is done in an appropriate manner and with the correct data structure.

Why is this important for Companies?

The Tax Authority's intention is not hidden: they aim to introduce a new tax inspection procedure, wherein discrepancies reported in the RTIR (Real Time Invoice Reporting) and the VAT return's M pages, as well as erroneous data submissions, will be scrutinized. If the Tax Authority detects such discrepancies or incorrect data submissions, they will prompt companies to correct these errors. Subsequently, Companies will be given a certain timeframe to review and rectify their data submissions.

If erroneous data submissions are not corrected, the Tax Authority will impose penalties for the incorrect data submissions, if the discrepancies arise from this. It is important to remember that the maximum penalty that can be imposed for incorrect or incomplete Online Invoice reports is HUF 500.000 per invoice. Although the Tax Authority has not enforced this penalty so far, citing the preparation period, we anticipate an increase in penalty amounts in the near future, as taxpayers, according to the Tax Authority, have had sufficient time to prepare.

How Can We Assist You?

• Review of invoice data submissions to ensure completeness;
• Interpretation of error messages and formulation of correction suggestions;
• Reconciliation of VAT returns and Online Invoice data submissions (outgoing, incoming, complete).

Should you have any questions as regards about it
the tax experts of VGD Hungary will be pleased to assist you.

This newsletter provides general information and does not constitute tax advice.