This results in compliance obligations for both the Hungarian supplier issuing the invoice and the customer receiving it if it is seeking VAT recovery in respect of the transaction in question and separate listings need to be prepared. However from 1 January 2017 the threshold will be reduced to 100,000 HUF.
What this means
The significant reduction in the threshold means that many more businesses will be impacted and therefore will need to be comfortable that the additional compliance requirements are met and that the necessary systems changes required are adopted
According to the proposal, all invoices issued by a taxpayer registered in Hungary which include at least 100 000 HUF VAT will have to be included in the issuer’s summary statement (‘M sheet’). On the purchaser’s side, all taxpayers registered in Hungary accepting an invoice which include at least 100 000 HUF VAT, will have to include this invoice in their summary statement if they are to recover VAT on the basis of this invoice.
