Grace period for those taxpayers, who do not have Hungarian VAT ID

Tax & Legal Alert | PwC Hungary | 7 April 2021

Grace period is introduced until 30 June 2021 regarding the online reporting obligation for those taxpayers, who do not have Hungarian VAT ID and apply self-billing as customers.

As we mentioned in our previous newsflash many questions occurred regarding the changes in online invoice data reporting due as of 1 April in relation with companies who are applying self-billing. Questions arouse especially regarding those cases where the customer, based in an EU member state or in a third country, issues the invoices via self-billing.

According to the newly issued statement of the Ministry of Finance a grace period is introduced by the Hungarian Tax Authority until 30 June 2021. The statement includes that the Hungarian Tax Authority is not going to impose penalties, if the foreign taxpayer does not fulfil or does not fully comply with the invoice data reporting obligation given that the following requirements are met:

• the customer issues the invoice via self-billing based on the written agreement of the parties, and
• the customer has not settled in Hungary for economic purposes and it does not have a Hungarian VAT ID and it is also not obliged to have one.

Considering the above conditions, numerous companies are excluded from the above grace period. Several further questions arise, too, specifically, what will be the final regulation for the foreign companies performing self-billing post to the grace period.

For more information, please contact your regular contact person, or: