E-invoicing in Hungary (NAV RTIR)

Electronic invoicing is currently not required in Hungary and is subject to the recipient's acceptance through Article 174 of the Hungarian VAT Act.

Since 2018, Hungary has used a centralized system to implement RTIR reporting standards. It enables the NAV to validate the invoices in real-time in accordance with Decree 23/2014, which is applicable to all businesses registered in Hungary for VAT.

Implementation timeline

• 1 July 2018: Implementation of RTIR for domestic invoices with a minimum VAT amount of 100,000 HUF (approx. 250 EUR).

• 1 July 2020: Abolition of an RTIR threshold (all invoices now submitted in real-time).

• 1 April 2021: All B2B and B2C transactions must be reported in real-time including intra-community transactions.

Real-Time Invoice Reporting (RTIR)

Hungary started to implement fiscalization in 1999 and then later in 2014 implemented the Online Cash Register System in two sectors; retail and hospitality. It then expanded its scope as an advanced system in 2016 to encompass the whole service sector.

Through its Hungarian Tax and Customs Office - NAV certification, hardware fiscalization consists of both a fiscal device and a POS application.

Communication with the Tax Administration relies on a GPRS connection, ensuring complete automation. This connection allows for individual transaction references, enabling the seamless reporting of each transaction to the Tax Administration.

Required data for real-time reporting

• Exact time

• Seller's name, software name, version number

• Invoice type

• Invoice details

• Details about any invoice data modifications

State of e-invoicing in Hungary

While electronic invoicing is not required in Hungary, the RTIR calls for some invoicing specifics. The NAV RTIR system requires an XML file in the newest version 3.0 format. E-invoices may still be transmitted if the client agrees to the terms.

Electronic signatures are not required except for PDF invoices. This is because the NAV already validates them through real-time reports that are sent through the RTIR system.

Hungarian e-invoicing process

1. A taxpayer registers on the Online Számla platform

2. Create both a technical user and keys

3. Establish a connection between your ERP and NAV

4. Issue an invoice from your ERP

5. Report the invoice in real-time in XML format, either directly or through a service provider such as DDD Invoices

Whos affected by the new mandate?

There are 3 affected groups:

• Hungarian companies

• Foreign companies with tax residency in Hungary

• Anyone issuing an invoice to a domestic taxable person for a transaction in Hungary

Penalties

Those who do not comply have to pay a fine of up to 500,000 HUF (approx. 1,280 EUR) per invoice.

DDD Invoices: An E-Invoicing Service Provider

DDD Invoices simplifies electronic invoicing in Estonia by providing a solution that integrates into your existing software through a single API. This allows companies to automate the invoicing process and satisfy VAT e-invoicing rules. We handle e-invoice creation, distribution, and archiving, allowing you and your clients to send and receive e-invoices seamlessly within your existing software.

We stay up to date with local tax regulations, so you don’t have to. Mandatory e-invoicing compliance and business expansion into Estonia will become a breeze. If we do not currently serve a territory where you require e-invoicing, let us know, and we can develop it in 2-3 weeks. This way, we can ensure VAT compliance at all times, wherever you do business.

FAQs about electronic invoicing in Hungary