Hungary
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Regulated by the Hungarian National Tax and Customs Administration (NAV). Real-time invoice reporting requirements aim to reduce VAT fraud and improve transparency.
Hungary’s e-invoicing system focuses on real-time invoice reporting rather than structured Peppol-style exchange:
Implementation of mandatory e-invoicing in Hungary
Hungary’s e-invoicing system focuses on real-time invoice reporting rather than structured Peppol-style exchange:
- Since July 2018, all domestic B2B invoices with VAT must be reported to the NAV Online Invoice System. Invoices are issued through any invoicing software, then submitted digitally to the tax authority.
- By 2021, Hungary extended the requirement to all transactions, including B2C, exports, and cross-border deals.
Who needs e-invoices in Hungary?
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.
- Includes simplified invoices at the point of sale, reported in real time.
- Enhances transparency and reduces underreporting risks.
- 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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