Real-time invoice reporting for Hungary

As of 4 January 2021, the types of invoices to be reported on the real-time invoice reporting for Hungary has been further expanded. The obligation now includes the following transaction invoices:

• invoices issued to non-taxable persons (B2C transactions);
• exports from Hungary to non-EU countries; • intra-Community deliveries from Hungary to EU countries. A special sanction applies to the non-compliance with the above rules, however, due to the COVID-19 pandemic, the NAV announced a 3-month sanction-free transitional period. Hungary implements new tax measures in order to comply with the EU Anti-Tax Avoidance Directive.

Among other measures, the following ones were implemented in the Hungarian VAT System:

a) the inclusion of the new EU e-commerce package, which will be effective from 1 July 2021. The concept of e-commerce comprises distance selling of goods, both from the European Union and from third countries, depending on the country of departure of the goods.

b) The possibility to recover VAT on B2C bad debts as from 1 January 2021.