Hungary Publishes ViDA Directive Implementation Information Document

On March 2, Hungarian National Tax and Customs Administration published a concept information document “ViDA Implementation in Hungary” to detail on how the VAT in the Digital Age package will be applied for invoicing and data supply in the country.

The ViDA package stipulates that electronic invoicing will be compulsory in the transactions between domestic businesses, as well as in the transactions between domestic and EU businesses. Invoices may only be forwarded through secure, authenticated and encrypted channels, not by e-mail.

In Hungary, all invoicing programmes will obtain official authorisation (accreditation) through a simplified, self-service process. Invoicing software providers must obtain this authorisation in advance, although a detailed IT audit is not obligatory for them. Data supplied with non-accredited software or by a non-accredited taxpayer will remain in “pending” status for 30 days, but the invoice can still be issued. If accreditation is not granted within 30 days, the taxpayer may be subject to a penalty.

For Community’s transactions, the deadline for issuing invoices is 10 days after performance of a transaction, for domestic transactions – 8 days. Private persons and buyers outside the EU can still receive a paper-based invoice, but they can opt for electronic invoices, compatible with the XML format (providers must also prepare and test their software for the processing of this file format). The Tax Administration suggests using OpenPEPPOL software for invoice issuing and forwarding in Hungary.

Preliminary identification of the buyer is required: it will be compulsory to identify the buyer’s tax number and the point of receipt before the invoice is issued.

Any invoice issued under the ViDA Directive must be accompanies by data supply, which must be sent to the tax authority with an electronic seal affixed. The data supply must not include the name and personal data of the seller-private person and maintain its encrypted form. Hungary will also include the buyer’s data supply for domestic and Community’s transactions.

The Tax Administration also announced the following new services to accompany the introduction of the ViDA package:

• archiving service: for both the seller and the domestic buyer, invoices will be preserved for the period required by law;

• invoicing programme of the tax authority: it will not be part of the PEPPOL network, but an independent free invoicing program, compliant with ViDA requirements;

• invoice transmission service: can be set up as a standalone service, it will work as a built-in basic function of the invoicing software;

• presentation of data supplies: data supplies are shown to both the seller and the buyer by the tax authority for transparency and audit purposes.

ViDA Implementation in Hungary