Hungary: Tax Authority Proposes Delaying Mandatory VAT Reporting through the eVAT System Until 2028 for Most Businesses

On October 15, 2026, Hungary's Tax Authority proposed postponing mandatory eVAT VAT reporting until January 1, 2028, for most businesses. Large companies would transition during 2027. The proposal gives retailers and software providers additional time to prepare their accounting systems and VAT reconciliation processes.

Hungary's Tax Authority (NAV) announced on October 15, 2026, a proposal to postpone the mandatory transition to the electronic VAT reporting system, known as eVAT (eÁFA), until January 1, 2028, for most businesses.

Under the proposed timetable, the largest companies would begin mandatory use of eVAT during 2027, while small and medium-sized businesses would receive another year to prepare.

The proposal changes the previously planned discontinuation of the ÁNYK, Hungary's traditional electronic tax return filing application, which was scheduled for December 31, 2026.

The postponement is not yet an adopted legislative change. The Tax Authority has proposed a phased transition, but the revised deadlines and detailed implementation arrangements still require formal confirmation.

The announcement is particularly relevant to retailers, retail chains, accounting software providers and ERP system operators preparing to integrate their VAT reporting processes with the Tax Authority’s electronic systems.

Hungary introduced eVAT in 2024 as an alternative method for preparing and submitting VAT returns.

Unlike traditional reporting, where businesses primarily prepare VAT declarations using information from their accounting systems, eVAT allows taxpayers to work with transaction-level information already available to the Tax Authority.

The system combines information from several sources, including:

• Online Számla, Hungary's real-time invoice reporting system,
• Online cash registers, which transmit retail transaction information to the Tax Authority,
• Customs records concerning imports and import VAT.

However, the Tax Authority does not automatically possess all information required to prepare a complete VAT return.

Transactions such as intra-Community acquisitions, services purchased from foreign suppliers and other transactions not covered by existing reporting systems must still be identified and recorded by taxpayers.

Consequently, businesses remain responsible for verifying the information used in their VAT declarations.

The eVAT system currently supports two principal reporting methods: The Tax Authority’s web interface and machine-to-machine communication (M2M).

1. Tax Authority web interface

The web interface is available to taxpayers processing fewer than 100,000 invoices during a reporting period.

The Tax Authority uses available transaction information to prepare a draft VAT return, including preliminary VAT classifications.

Businesses can review the draft, correct applicable tax classifications, add missing transactions and verify the information against their accounting records before submission.

This method may be suitable for smaller retailers and businesses with relatively straightforward VAT reporting requirements.

2. Machine-to-machine (M2M) communication

The M2M method allows businesses to connect their accounting or ERP systems directly to the Tax Authority through an application programming interface (API).

Businesses prepare VAT analytical records using their own transaction information and submit these records in the required structured format.

The Tax Authority validates the submitted information and identifies potential inconsistencies, allowing taxpayers to review and correct their records before completing the VAT declaration.

M2M communication is available regardless of transaction volume and is the required eVAT method for businesses handling 100,000 invoices or more during a reporting period.

On August 3, 2026, the Tax Authority introduced the eVAT M2M 2.0 XML schema, replacing the previous version in its production environment.

The technical update remains relevant for software providers developing or testing M2M integrations, independently of the proposed postponement.

The transition to eVAT changes how businesses prepare and verify VAT returns.

In traditional VAT reporting, businesses generally calculate their VAT obligations using internal accounting information before submitting the required declaration.

Under eVAT, the Tax Authority already possesses information about many underlying transactions before the return is prepared.

Businesses must therefore compare their accounting records against the information held by the Tax Authority and investigate differences.

These differences may arise from incorrect VAT classifications, missing invoices, inconsistent reporting periods or transactions recorded differently in accounting and tax authority systems.

For retailers, this is particularly relevant because information may originate from several systems, including POS applications, online cash registers, e-Invoicing solutions and ERP platforms.

The more closely these systems are integrated, the easier it becomes to identify discrepancies before submitting VAT returns.

Impact on affected businesses

The proposed postponement would give retailers and software providers additional preparation time, but it would not remove the need to adapt VAT reporting processes.

Large retail chains may need automated reconciliation capabilities because of their transaction volumes and the complexity of their accounting systems.

For POS and ERP providers, the practical focus is ensuring that transaction information transferred between systems is complete, correctly classified and suitable for VAT reporting.

Businesses should pay particular attention to VAT determination, tax codes, invoice data, reporting periods and the treatment of transactions not already recorded by the Tax Authority.

The eVAT transition does not itself introduce new fiscal receipt issuance requirements or change the existing obligation to report transactions through Hungary's online cash register and Online Számla systems.

The principal change concerns how reported transaction information is subsequently used, validated and reconciled when preparing VAT returns.

What should retailers and software providers do?

Businesses should continue preparing for eVAT while monitoring official confirmation of the revised implementation timetable.

Retailers should review whether their accounting and ERP systems can reconcile VAT information with data received from POS systems, online cash registers and invoice reporting platforms.

Software providers developing M2M connections should ensure compatibility with the current eVAT M2M 2.0 schema and continue testing data submission, validation and error-handling procedures.

From a retail compliance perspective, the proposed postponement should be treated as additional preparation time rather than a cancellation of the transition.

The broader implication is that VAT compliance increasingly depends on the accuracy of individual transactions before the VAT return is prepared.

For businesses operating multiple stores or processing substantial transaction volumes, reliable data transfer and reconciliation between retail and accounting systems will become increasingly relevant.

The Tax Authority’s October 15 announcement remains a proposal. Businesses should therefore distinguish the planned 2027–2028 timetable from legally confirmed implementation deadlines until the necessary changes are formally adopted.

The main source for this article is the Tax Authority’s proposal from October 15, 2026 - Source

Ivana Picajkić, Medior Legal Consultant at Fiscal Solutions

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