Legal rules for the upcoming e-receipts and e-cash registers published in Hungary

The draft decree of the Minister of Finances on the distribution and operation of e-cash registers and the requirements concerning e-cash registers and the issuance of e-receipts was published in Hungary. The Draft Decree is a proposal to introduce a new system of electronic cash registers (e-cash registers) in Hungary, which will enable taxpayers to issue and receive electronic receipts for their transactions. It is published by the European Commission after the approval of the Minister of Finance of Hungary inside the TRIS section of the European Commission's official documentation.

The e-cash registers are being introduced in order to replace the current online cash registers in the future since the current cash registers have been in use for 10 years and are deemed mostly outdated.

The e-cash registers will have two possible types: cloud-based and hardware-based. The cloud-based e-cash registers will use certified software and a digital signature to generate and transmit the electronic receipts. The hardware-based e-cash registers will also have a tax unit that will ensure the security and integrity of the electronic receipts.

The Draft Decree also introduces a customer application, which will allow buyers to access their electronic receipts through their mobile phones or other devices. The customer application will also enable them to download, display, and analyze their data from the electronic receipts and, optionally, any related documents and information. The customer application will be provided by the distributor of the e-cash register, who must also have a distribution license from the tax authority.

The same decree also introduces a so-called receipt store, which will be operated by the receipt provider. The receipt store will collect and store the data from the electronic receipts, as well as from the customs documentation and the cash register details. The receipt store will also retain the data for 10 years and make it available to the tax authority upon request. The receipt store will also allow taxpayers to access their pre-filled VAT returns based on the data reported by the e-cash registers.

The Draft Decree aims to modernize the cash register system in Hungary by using cloud-based services and integrated software solutions. It also aims to reduce administrative burdens, tax frauds, and VAT audits, and to support fair businesses and market purity.

The process is planned to occur gradually over the course of the year 2024, for the most part, with the first important deadline being the 1st of July 2024, as the point in time when the new e-cash register solutions can be put into operation in Hungary, and, after that, in the second half of 2024, when the general obligation for issuing these receipts will commence based on the current timeline.