Hungary - VAT control reports and invoice changes

03 October 2012

Two new Hungarian VAT reporting demands are being introduced; a domestic recapitulative report in the agricultural commodities sector along with a generally applicable high-value summary.

To stem the fraud upsurge, brought on by Hungary’s high VAT rate scale , a reverse charge cure has been targeted on the most affected area of farm food basics such as bulk grain and seed cargo. Hungary’s reverse-charge derogation application was fully authorised by the EC in September for a two year permit commencing July 2012, conditional that suitable control reporting be implemented. A recapitulative report will operate in the same way as the EC Sales List, permitting tax inspection and control of the reverse charge chain. The report will require completion of invoice dates, net values and recipient tax numbers.

Commencing January 2013, high-value VAT reporting will also commence for both sales and purchase invoices with VAT of 2 Million Hungarian Forints (HUF) (€7k equivalent) or greater. Invoice listings will correspond with each periodic VAT return filing. The VAT number of the transaction party (supplier or customer), the invoice number and date, the net amount and the VAT payable/deductible will require to be entered. Non-deductible purchase invoices do not have to be logged, except in the case of intra-community acquisitions. Multiple invoices, within any VAT return period, where the cumulative VAT value exceeds the threshold, are to be registered as a total in a single entry VAT amount against the particular transactor’s VAT number.

To facilitate the process in 2013, all invoices must not only show the issuer’s VAT number, but also the customer’s VAT number. In addition, reports will be submitted electronically. Further, from July 2013, it is intended that the tax authority will permit relevant access to reported sales and purchase invoice records.

Please contact TMF VAT Services for further information on these Hungary VAT compliance changes.