Recent changes in the field of digital reporting – significant changes are expected in the online invoice data reporting

According to the draft Autumn 2020 Tax Package announced on November 12, 2019, companies' online invoice reporting obligations will be subject to significant changes over the coming years. Thus, the expansion of the scope of online data provision will not stop with the changes of Online Invoice 2.0, which will come into force on April 1, 2020.

As the next step based on the draft regulation, the threshold of HUF 100,000 for the invoice data reporting will be ceased as of July 1, 2020. Thus, it will be required to provide data on all invoices issued to resident taxable persons for completed transactions within the country. Accordingly, the current HUF 100,000 threshold for the Domestic recapitulative statements to be submitted as part of the VAT return for incoming invoices will be abolished likewise. In addition, the scope of mandatory invoice issuance is expanding: companies will have to issue invoices for certain VAT exempt transactions.

As of 1 January 2021, the range of invoices to be reported will be further expanded, as the invoices issued to taxable persons on intra-Community and extra-Community transactions will have to be reported and - with a few exceptions – invoices issued to non-taxable persons as well.

In order to prepare for the reporting requirements set out by the new draft Regulation, it is recommended that - if adopted -the necessary steps are taken to ensure compliance in a timely manner. It is worthwhile for Companies to review how they will be able to meet the new requirements in the coming years, bearing in mind that in the future, many changes and new requirements will likely be introduced in data reporting beyond what is already known.

The experience of the past years in data reporting and tax digitalisation shows that during the preparation it is worth emphasizing the flexibility and quick adaptability of the implemented solutions in addition to the adequacy and cost efficiency, since this will significantly facilitate the preparation in case of future obligations and changes.

If you have any questions regarding the above, please contact Gábor Farkas (e-mail: gabor.farkas@pwc.com), Barbara Palkovits (e-mail: barbara.palkovits@pwc.com), Dénes Molnár (e-mail: denes.molnar@pwc.com).