Real Time Invoice Reporting (RTIR)

Dear Clients! Dear Readers!

We summarize the regulations regarding the real time online invoice reporting, which comes to force as of 1 July 2018.

1. System of data reporting

The introduction of the new RTIR obligation aims to reduce black economy and the current volume of fake invoicing. As of 1 July 2018, the system of detailed invoice reporting as part of VAT-returns are going to change as well. The VAT threshold of invoices to report is going to be reduced to HUF 100’000.

Invoices to report

All taxable persons issuing outgoing invoices with Hungarian VAT may be subject of the new reporting obligation. The RTIR is obligatory in case of invoices when:

• the VAT charged is more than HUF 100’000 and
• the customer is a Hungarian taxable person with HU VAT number.

In the following cases there is no reporting obligation:

• invoices for private customers (or for non-taxable companies),
• invoices with domestic Reverse Charge,
• VAT exempt domestic sales,
• VAT exempt Intra-Community sales.

In case of incorrect or missing report the tax authority is entitled to levy a penalty up to HUF 500’000 for each invoice.

2. Method of reporting

Manual invoices

In case of invoices issued manually on registered invoice books, the deadlines of reporting are as follows:

• invoices incl. more than HUF 100’000 VAT - within 5 days following the date of issue
• invoices incl. more than HUF 500’000 VAT - within 1 day following the date of issue

The data reporting must be fulfilled electronically via the webpage of the tax authority by manual data entry.

Invoices issued with software

As of 1 July, the invoicing software must be able to provide data of each invoice to the tax authority. The data report must be fulfilled in the given format

• electronically,
• automatically ( immediately after issue of the invoice),
• without human intervention.

Prior to the data reporting, taxpayers are obliged to register online in the system of the tax authority. The registration can be done either by a representative person of the company, or by an external service provider authorised by the company.

3. What should we do, if we do not have a proper system, and the software development would be expensive?

It is allowed for companies to fulfil their data reporting obligation through an external service provider. In case of such authorized service, the company and the service provider have joint and several liabilities, therefore it is recommended to find a trustworthy partner, which complies the regulation.

Invoicing by proxy

Companies may use even two or more invoicing software simultaneously. The invoice reporting obligation can be fulfilled:

• in case of invoices, which are not subject to the new rules by using the current invoicing software without having online data reporting function, and
• in case of invoices, which are subject to the new rules by authorizing an external service provider to issue invoices and to do the reporting on behalf of the company.

ABT’s solution for invoicing after 1 July 2018

Our specialists have been developing the invoicing system of ABT which is currently used by our clients. Our system is able to issue invoices and fulfil the data reporting obligation on behalf of our clients.

Following July 1, we will be continuously providing our clients with invoicing and data reporting service. Our system is also recommended for companies which are not able to meet the new requirements.

In order to improve the efficiency of the service, our system is able to issue a large number of invoices based on excel data import.

Setting up the system, compliance

Our colleagues have the appropriate tax and IT knowledge to give you assistance in compliance works of the new regulations.

We are ready to help you in any issues of developing your own ERP system, using the invoicing system of ABT, or registration of your company in the system of the tax authority.

Should you have any questions relating to the above mentioned regulations or services, our colleagues would be pleased to be of your help.

Kind regards,

ABT Treuhand Group