In order to minimise the administrative burden for businesses when preparing and completing VAT returns and EC sales and purchases lists, PwC’s tax experts and SmartTax developers have jointly created an IT solution called Tax Return Unified Support Tool.
Background
As of 1 January 2013, taxpayers must prepare as part of their VAT return a domestic recapitulative statement for domestic purchases with a VAT amount of HUF 100,000 or more. Preparing and checking this statement significantly increases the time required to prepare VAT returns, which is in itself time-consuming.
However, from 1 July 2020, the rules for taxpayers to provide data for the domestic recapitulative statement and for outgoing online invoices also changed significantly, as the previous output tax threshold of HUF 100,000 was abolished for both the recapitulative statement and for online invoice data reporting.
These changes impose a significant administrative burden on some taxpayers, as the number of “M” sheets and invoices previously submitted has increased substantially.
At the same time, all invoices received can now be downloaded thanks to a new feature in NAV’s Online Invoicing System, which makes it possible to automate the checking of domestic supplier invoices, the reconciliation of “M” sheets, and the accounting of supplier invoices. Our services below are based on these legislative changes and the capabilities of the IT systems concerned.
Tax Return Unified Support Tool
Automating VAT returns
In order to minimise the administrative burden for businesses when preparing and completing VAT returns and EC sales and purchases lists, PwC’s tax experts and SmartTax developers have jointly created an IT solution called Tax Return Unified Support Tool.
The Tax Return Unified Support Tool comprises a complete analytical processing module and various sub-modules (for completing sheets “A” and “M” and EC sales and purchases lists), which are available either as a package or separately. PwC’s application can receive data from any ERP system, process it, identify any logical or formal errors and, once these have been rectified, automatically load the relevant data into the relevant sheets of Form 65 or Form A60. The application makes it quick and easy to prepare AbevJava forms for VAT returns. It is important to note that the form-filling sub-module(s) is/are suitable for preparing tax returns for a given year, so the application will be updated annually, or more frequently as the rules change.
Available modules
- Main analytical processing module
- PwC Tax Return Unified Support Tool form-filling modules
- PwC Tax Return Unified Support Tool Intra module
Main analytical processing module
The main analytical processing module automatically processes the data retrieved from the ERP system, which significantly reduces the time needed to prepare VAT analytics and complete the relevant forms, especially when this is done from multiple systems.
PwC Tax Return Unified Support Tool form-filling modules
- Domestic recapitulative statement (“M” sheet) completion sub-module
- EC sales and purchases list completion sub-module
- “A” sheet (main sheets) completion sub-module
PwC Tax Return Unified Support Tool Intra module
As part of our service, our in-house developers and tax advisors will deliver a software application that will allow you to fully comply with the KSH-ELEKTRA data reporting obligations. The application can automatically generate the XML file, with the content and structure prescribed by the Hungarian Central Statistical Office, based on data exported from your ERP system.
