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eVAT Consulting Services: Implementation and Optimization

Assistance with the implementation and optimization of the Hungarian eVAT system, ensuring a seamless transition and leveraging the benefits of both the web-based and the M2M interfaces.

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Don't hesitate to contact us!

Lilla Németh

Director, Tax services

Matyas Budai

Manager, Tax services


Key elements of our eVAT consulting:

  • System Overview: Understanding the operations of the eVAT web and M2M systems, including the web and XML formatted VAT declarations and their related validation processes.
  • Data structure development: Consulting on aligning the standard tax code table issued by the tax authority with transactions in VAT analytics.
  • Training and support: Receive necessary training on system usage, interpreting response messages, and managing error correction processes.
  • M2M data optimization: Advisory on data cleaning, data structuring, and improving the efficiency of machine communication for XML formatting of VAT analytics.
  • Reducing audit risks: Help in preparing more accurate VAT declarations to reduce the number and duration of tax audits.

Benefits of implementing the new eVAT system

Our experts at RSM can help your company maximize the benefits provided by the eVAT system, which:

  • provides a more effective and precise way to prepare and review VAT returns,
  • helps mitigating VAT risks,
  • decreases the number of tax audits conducted,
  • decreases the amount of administrative tasks during a tax audit,
  • helps saving time and money by way of increasing the need for manual data processing.

In addition, trusted taxable persons using the M2M version of the eVAT system have the following benefit. They will not be audited by the Hungarian tax authority within 15 days following the submission date of the VAT return. Also, during these 15 days, they may carry out a self-revision without having to pay self-revision fee. 

Your Company can benefit from our eVAT Consulting Services in both of the following cases:

The M2M version is especially recommended for companies that:

  • the Company deals with a high volume of invoices
  • several different tax codes are used based on the business structure
  • complex VAT returns have to be prepared and filed

The web-based version is recommended for companies that:

  • the Company deals with a low volume of invoices
  • the Company engages mainly in domestic transactions, with few EU purchase of goods or EU purchase of services

How does the eVAT system work?

With the help of the eVAT system, the Hungarian tax authority will be able to access a wider range of data, which data are not only helping them in the audit processes, but also helping the taxable persons to prepare and file a more precise and well-reviewed VAT return. In addition, the eVAT system ensures a continuous interaction between the tax authority and the taxable persons; therefore, it will reveal specific issues that can be solved without a tax audit to be conducted. It is also important to note, that with the introduction of the eVAT system, the ÁNYK system will be discontinued.

Step plan for implementing the eVAT system

  1. Review of ERP and accounting software
  2. Review of tax codes, harmonization of company tax codes with the tax codes of the Hungarian tax authority
  3. VAT analytics and M2M mapping
  4. Generating and testing M2M xml
  5. Creating the data communication link between eVAT and M2M API
  6. Implementing the system for receiving messages from the Hungarian tax authority about data reporting
  7. Review of business management processes, creating new processes in line with the eVAT system
  8. Introduction and testing

You can read about the introduction of eVAT system in more detail in our blog. 

What are the challenges of the implementation of M2M system?

The M2M system of eVAT has several advantages but also brings about some challenges. First of all, companies will have to understand the way the system works and they have to ensure that the correct data is uploaded to the M2M system. All data have to be prepared in the accounting/business software beforehand in an XML format. 

One of the challenges is that the Hungarian tax authority requires specific and standard data structure including the applied tax codes. This means that all transactions in the VAT analytics have to be linked to the tax code of the Hungarian tax authority, based on which, the system automatically creates the information to be indicated in the corresponding box of the VAT return. Accordingly, taxable persons have to ensure that their tax codes are linked to the tax codes of the tax authority. 

In addition to the above, companies have to ensure that they are able to receive and process the messages sent from the tax authority regarding the data. Finally, it is essential that companies ensure that the data is clean and well-structured in XML format, as this is necessary for the M2M communication to function. 

Why choosing our eVAT Consulting Services?

  • Combined expertise of Tax and IT: Our professional team has both the required IT and the tax knowledge ensuring that all eVAT related processes are not only compliant from a technical perspective, but also from a tax perspective. 
  • Offering a complex service: Besides assisting with the implementation of the M2M system, we can help with the complete eVAT filing process, from creating the XML file until sending the information to the tax authority. In case of the web-based version, we are happy to provide guidance on how to use this type of system, as well as any further technical support, if needed.  
  • Providing an up-to date and innovative solution: RSM is working based on the most recent technology trends and security policies in order to optimize and constantly develop the eVAT processes.
  • eVAT experience: We keep our clients informed about the latest VAT trends, changes around the eVAT system, and about the developments and solutions offered by the Hungarian tax authority. Our team participates in all relevant events organized by the tax authority, including personal meetings with the representatives of the tax authority, we provide feedback to them, as well. Overall, we do guarantee that our Clients are always up-to-date and aware of the current eVAT news. 
  • Communication with the developers: We contribute in the development process by way of being in contact with the professional IT team, making sure that the final product is in line and tailor-made to our Clients’ needs. 

RSM Hungary’s eVAT Consulting Services will ensure that your Company:

  • is ready to manage any challenges that the eVAT system may pose,
  • can integrate its own ERP system and the M2M solution of the eVAT system, and this way, it can maximize the benefits provided by the M2M solution,
  • can also benefit from the web-based solution if that is the preferred way, and RSM can provide information on how to use this solution, what functions it has, and how to adjust the automated rules within the system in order to decrease the need for any manual intervention. 

EVat m2m offer

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