The manner of invoicing is indifferent for Tax Autority
Data must be disclosed to the Hungarian Tax Autority (HU TA) electronically in regard to both paper-based and electronic invoices. An invoice may be paper-based or electronic. A paper-based invoice may be an invoice issued by using a preprinted form or by using a software with invoicing functionality. An invoice will not be electronic by being issued from the invoicing software. In order for an invoice to qualify as electronic, it is required to comply with further criteria. Real time invoice data reporting is expected to make electronic invoicing even more popular.
What data will be required to be reported?
Real time invoice data reporting is expected by the tax authority in a defined data structure and through a properly specified and programmed communication channel which is completely independent of the 2016 data export function, currently in effect as well, both in terms of data structure and operation. This data structure is specified by the xsd schema. It is important that a different data structure was in effect in 2016 (in the course of introducing the data export function),and another one is valid in 2018. The decree specifyíng the final data structure was published the other day.
Example for the xsd schema:
This xsd schema includes much more data than the obligatory content of an invoice. An invoicing software is required to forward to the HU TA at least the compulsory invoice data content as per the VAT Act. This will be a regulatory obligation for a taxable person, but additional data may also be forwarded.
So the taxable person may decide to include a broader range of data in the data reporting than compulsory – as prescribed by legal regulation. The schema file (xsd) including invoice data enables the inclusion of data additional to the compulsory data content pursuant to the VAT Act (included as decided by the taxpayer or e.g. as prescribed by the Excise Act).
What is the difference between the date of fulfillment, the date of issue of the invoice and invoice closure?
In the invoice, the date of fulfillment indicated shall be the date when a given transaction is deemed as effected pursuant to the rules of the VAT Act. As a general rule, this means the completion of a taxable transaction. In case of partial performance, it means the date of partial performance; in case of advance payment, the date of receipt (credit) of the advance money due; and transactions subject to periodic settlement are governed by even more special rules. In most cases, the taxpayer is required to issue an invoice – or procure that an invoice is issued – with no delay, but within 15 days at the latest.
In general, the issuance of invoices is not delayed: they are issued already on the date of fulfillment. Then the date of fulfillment and the date of issue of the invoice coincide. In such cases, it is sufficient to indicate a single date in the invoice. In all other cases, the date of the invoice and the date of fulfillment must be indicated separately.
So the date of issue of the invoice must be the actual date of the accounting document concerned. In principle, the invoicing software may not allow to “date back” or to “overwrite” this date. However, in certain cases, the date of fulfillment is possible or even required to be earlier than the actual date of issue.
Similarly, in case of dates of fulfillment as per the general rule, an invoice is not allowed to be issued in advance, meaning that the invoicing software may not have a function to allow this. Nevertheless, there is no hindrance to the fact that invoices associated with transactions to be fulfilled in the future are prepared, closed, but not issued until the date of fulfillment by the taxpayer.
The obligation of real time invoice data reporting relates to invoices issued.
