The introduction of eVAT: The change starts now!

On 1 January 2024, the National Tax and Customs Administration launched the electronic VAT system to support the electronic compilation and submission of VAT returns. The introduction of eVAT will modernise and digitalise the VAT return process, allowing for faster and more accurate reporting, while reducing the administrative burden on businesses.

Fulfilling the VAT declaration obligation

The new system is initially only an option for businesses, the current declaration process will not be phased out. Taxpayers will be able to choose which option to use to fulfil their VAT return obligations.

Thus, from 1 January 2024, the VAT return can be submitted in one of the following ways:

• by submitting the well-known form '65' VAT return;
• the e VAT interface provided by the tax authority;
• via machine-to-machine (M2M) communication.

How does the eVAT system work?

The system is based on standard tax codes defined by the tax authorities and the VAT analytics on which the returns are based.

Declaration via machine-to-machine (M2M) connection

Larger taxpayers will have the possibility to download the tax code available to the tax authorities

• from the online invoice data service,
• data from online cash registers, and
• data from customs rulings on imports of goods.

In this case, the taxable person will automatically transmit the document-level data required to establish the tax liability to the eVAT system via an existing API connection and the eVAT system will prepare the draft return from these tax records, which must be approved by the taxable person. The uploaded data is compared with the online invoice data, so it is very important that taxable persons report their invoices correctly.

Declaration on the eVAT web interface

Smaller taxpayers can use the web portal to access the data listed for the M2M connection, which are or may be included in the relevant tax assessment period. The system automatically performs the tax coding based on the data available in the data returns and customs rulings. The interface allows you to add and modify transaction data (e.g. the automatically defined tax code), but not to modify the data of invoices issued (in case of a data error, the online invoice data service is used, in case of an invoicing error, the invoice must be corrected).

The benefits of the eVAT system

The introduction of the eVAT system will make it easier for taxable persons to detect errors and will make the tax administration's work more efficient. It will reduce the risk and the number of tax audits at the Company. 

• In the eVAT system, the validation process of returns performs checks that previously only took place after the return was submitted, so these errors can be dealt with before the returns are submitted.
• If taxpayers fulfills their VAT declaration obligation in the eVAT system, they are exempted from providing M-form data.
• Tax authorities may not check the tax return submitted by a reliable taxpayer via machine-to-machine connection for fifteen days from the date the return is due. At the same time, a taxpayer who fulfills his declaration obligation through a machine-to-machine connection is exempt from the self-revision supplement if he submits the self-revision within 15 days of the submission of the return, but no later than the due date.

Self-revision of the VAT return submitted in the eVAT system (via the web interface or machine-to-machine connection) will be possible on the electronic interface from 1 July 2024, before that date, until 30 June 2024, the return can only be corrected on the “ÁNYK” form. It is recommended that taxpayers take the necessary steps to implement the eVAT M2M before 1 July 2024.

How can we help you?

• Pre-deployment advice;
• Advice on setting up a new system;
• Audit of existing system to assess compliance with legal requirements;
• Reviewing the NAV online invoice service, checking its completeness, interpreting the error messages received and suggesting improvements;
• Review of existing XML file to determine legal compliance.