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Webshops and Hungarian real-time invoice reporting in 2021

From 4 January 2021, the online invoice reporting will extend to almost all invoices issued by domestic companies, including the sales of webshops. According to the latest announcement of the Hungarian Tax Authority, foreign webshops exempted from providing real-time invoice data in case of their sales in Hungary.

For webshop sales within the EU where the private individual customer Hungarian and the online store is a taxpayer is registered in an other EU country, the online store exempted from real-time invoice reporting obligation on one condition. The EU-registered webshop should register to the EU OSS (one-stop-shop) system until the 1st of July 221.  

International webshops can be relieved, their invoice data reporting suspended

As a reform of e-commerce at EU level, from 1 July 2021, online stores will be able to fulfill VAT obligations arising from their distance sales to foreign customers through the ‘one stop shop’ (OSS) system. This option brings significant relief. On the one hand, the online store is exempt from tax registration in the customer's country.  Moreover, they do not have to supply online invoice data on their sales to the Hungarian tax authority.

The relief in real-time invoice report has been extended from 31st March 2021, to 30 June 2021 as the Hungarian Tax Authority made an announcement recently. In exchange for the extra 3-month extention of the grace period, international webshops has to register to the OSS no later than 1st July 2021.

Should Hungarian webshop sales be reported to NAV online invoice system?

Let's not forget that Hungarian webshops selling to Hungarian private individuals are not subject to the rules of the one stop shop, so these companies must fulfil the online invoice reporting obligation in the same way as for offline (i.e., without a web shop) sales!

The online invoice report obligation applies to the following cases from the sales of online stores and webshops in the period between 1 April and 30 June 2021: 

  • The sales of Hungarian online stores that sell goods to private individuals in the other Member States. 
  • Online stores in the other EU member states that sell products to Hungarian private individuals, (regardless of whether they have a Hungarian tax number),if they do not register to OSS until 1 July 2021.  

In our experience, online data supply and the changing technical conditions in this regard pose serious challenges, in particular to foreign taxpayers. Mainly because, in many cases, webshops do not even have an invoicing program that complies with the Hungarian requirements. It is therefore worth assessing as soon as possible whether, if applicable, the online invoice reporting can be fulfilled by using an external invoicing service provider and whether the risks of fines can be reduced for this short transitional period. 

automated invoice data reporting

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