According to regulations that came into force on 1 January 2016, under Decree No. 23/2014 (VI. 30.) of the Minister for National Economy on the identification of invoices and receipts for tax administration purposes, and the auditing of electronically stored invoices by the tax authority, all invoicing software must have a built-in “data supply for tax auditing” function which facilitates data export. So it is important to know what the tax authority will actually examine.
During an audit, it will compare the following documents:
- Online invoice
- Invoice layout
- VAT return
- VAT ledger
- Data export
The tax authority has confirmed in a ruling that it is possible to comply with the above data reporting obligation through an application that can independently generate the required data file, in XML format, using data exported from the invoicing software.
PwC’s in-house developers and tax advisors have developed a customised application to ensure that the “data reporting for tax audit” function incorporated in your invoicing software fully complies with the statutory requirements.
The standard version of the application includes the following features:
- The application generates a data file from data exported from corporate invoicing software, in the proper XML format and with the content prescribed in Schedules Nos. 2 and 3 to the Decree.
- The application can also validate your existing XML files for statutory compliance.
- When customising the application, PwC’s developers will tailor it to your requirements, using files containing invoice data exported in a machine-readable format from your ERP system. This will allow you to extract and convert data files into the prescribed XML format at any time in the event of a tax audit.
