Hungary

Provinces

General

Provinces

General

About

General

About

General

Regulated by the Hungarian National Tax and Customs Administration (NAV). Real-time invoice reporting requirements aim to reduce VAT fraud and improve transparency.

Implementation Timeline

Date	Requirement	Details
July 1, 2018	Real-Time Invoice Reporting (RTIR) Introduction	Businesses required to report invoices with a VAT amount exceeding HUF 100,000 (approximately €250) to the NAV in real time
July 1, 2020	Extension to All B2B Transactions	All B2B invoices, regardless of VAT amount, must be reported to the NAV in real time
January 1, 2021	Inclusion of B2C Transactions	Businesses must report invoices for B2C transactions and crossborder supplies of goods and services in real time.

Who Needs E-Invoices?

E-invoicing in Hungary is required for:

All VAT-Registered Businesses: Mandatory for domestic and cross-border transactions.
Public Sector Suppliers: Must issue e-invoices for transactions with public entities.
Non-Resident Businesses: Required if registered for VAT in Hungary.

E-Invoicing vs. E-Billing

Aspect	E-Invoicing	E-Billing
Purpose	Tax compliance with NAV requirements	Internal or customerfocused processes
Format	XML via NAV Online Invoice System	Flexible, non-regulated formats
Usage	Mandatory for all taxable transactions	Optional for customer relationships

Key Features of Hungary’s E-Invoicing System

Hungary’s e-invoicing system involves:

Submission Platform: Businesses must report invoice data via the NAV Online Invoice System in XML format.
Validation: Ensures compliance with VAT regulations and mandatory fields.
Archiving: E-invoices must be stored for 8 years under Hungarian tax laws.

E-Invoicing Dataset

E-invoices in Hungary include the following critical data:

Buyer/Seller IDs: VAT identification numbers.
Invoice Details: Number, date, and payment terms.
Goods and Services: Descriptions, quantities, unit prices, and VAT details.
Taxes: Applicable VAT rates and amounts.
Transaction Info: Total amount payable, currency, and payment method.

E-Invoicing Across Transaction Types

B2B Transactions:

Mandatory real-time reporting streamlines VAT compliance and cross-border transactions.
Improves accuracy and speeds up VAT refunds.

B2C Transactions

Includes simplified invoices at the point of sale, reported in real time.
Enhances transparency and reduces underreporting risks.

B2G Transactions:

Compliant with EU Directive 2014/55/EU for public sector suppliers.
Ensures accurate reporting and alignment with EU standards

Penalties for Non-Compliance

Non-compliance with Hungary’s e-invoicing regulations may result in:

Fines: Up to HUF 500,000 (€1,250) per invoice for nonreporting.
Operational Risks: Rejected invoices may delay payments and harm client relationships.
Legal Risks: Repeated violations can lead to increased audits and reputational damage.

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