Beginning on 1 July, the National Tax and Customs Administration (NTCA) will see the invoice data of all transactions realised between over one million enterprises.

“The NTCA will be helping enterprises with a novelty that is unique in Europe: An invoice can be issued free of charge and with just a few clicks on a smart phone using the NTCA Online Invoicing program’s mobile application. A problem-free transition will be assured by a sanction-free grace period between 1 July and 30 September”, the Ministry of Finance’s State Secretary for Tax Affairs Norbert Izer informed Hungarian news agency MTI.

“Despite the fact that the tax office’s newly debuting app makes invoicing extremely simple and easily accessible to all enterprises, in view of the difficulties caused by the coronavirus pandemic until 30 September the Tax Office will not be sanctioning enterprises that are incapable of fulfilling their new tax return obligation arising because of the abolition of the previous 100 thousand forint minimum threshold”, Mr. Izer declared. “This would also be at odds with the tax office’s client-centric approach”, he added.

“Accordingly, the National Tax and Customs Administration will not be fining transgressions until 30 September providing enterprises that bear this new obligation from 1 July register within the Online Invoicing system prior to issuing their first invoice”, the State Secretary said, summarising the regulations relating to the three-month, sanction-free grace period.

“With its self-developed application, the tax office is taking all material and bureaucratic burdens off the shoulders of entrepreneurs”, Mr. Izer underlined. “The new app developed by the NTCA is exemplary even at international level. No other tax office in the European Union has developed a free invoicing program for taxpayers that also operates on a mobile phone; the Hungarian Tax Office is the only one to provide such a unique service to its clients”, he highlighted. As he explained, the Online Invoicing mobile app can already be downloaded, and using it makes invoicing extremely quick and simple. “In addition to simplicity, the app also provides a host of useful functions, affording several search opportunities and the chance to amend or delete invoices, and also assures the opportunity to handle customers in special ways, by for instance automatically filling out customer details”, he explained.

“The NTCA’s free mobile app could also provide a good response to the challenges posed by the coronavirus pandemic, since it could put an end to the era of paper invoices”, Mr. Izer declared. “According to the WHO, the virus can stay alive on paper for several months, and accordingly instead of providing and receiving paper invoices it is also worth considering transitioning to digital solutions in view of health protection considerations. The mobile app supports electronic invoicing, and an official copy can therefore be presented to the customer contact-free”, he explained.

The State Secretary pointed out that as a result of the abolishment of the 100-thousand-forint lower threshold, from 1 July all VAT taxpayers, meaning essentially all businesses, including those that choose to be VAT-exempt, must use online invoicing. The provision of data will be complete from 1 January 2021, when the tax office will begin receiving copies of all invoices, including those issued to private individuals.

In addition to the new mobile application, the transition is being facilitated by a host of tax office services, from among which the State Secretary first highlighted the informing of those affected. “In the upcoming days, some 1.2 million enterprises will be receiving a letter from the NTCA with the most important information relating to the transition. In the period leading up to 30 September, all enterprises that issue invoices must register within the Online Invoicing system, since this is a prerequisite for sanction-free status. Registration only takes a few minutes, and the process is also being facilitated by an NTCA video, which provides a step-by-step explanation of what needs to be done”, Mr. Izer stated.

(Ministry of Finance / MTI)