Article

E-Invoicing in Hungary

8 March 2022

Electronic invoicing in Hungary is now a reality. 

Electronic invoicing in Hungary is now a reality. The Hungarian tax authorities issued a directive that all B2C and B2B transactions be done in real-time, irrespective of the transaction amount. The Real-Time Information Reporting (RTIR) requirements took effect on 1st July 2020. Hungary is leveraging the NAV system to actualize the use of electronic invoices. For starters, NAV is an easily customizable Enterprise Resource Planning (ERP) that enables businesses to automate and connect tasks such as accounting, operations, stock management, purchasing, and sales.

E-Invoicing in Hungary

Electronic invoicing in Hungary is now a reality. The Hungarian tax authorities issued a directive that all B2C and B2B transactions be done in real-time, irrespective of the transaction amount. The Real-Time Information Reporting (RTIR) requirements took effect on 1st July 2020. Hungary is leveraging the NAV system to actualize the use of electronic invoices. For starters, NAV is an easily customizable Enterprise Resource Planning (ERP) that enables businesses to automate and connect tasks such as accounting, operations, stock management, purchasing, and sales.

Who Is Affected by the e-Invoicing Requirements in Hungary?

Electronic invoicing in Hungary affects the following invoice issuers:

  • All businesses registered in Hungary
  • All domestic taxpayers
  • Foreign companies with a branch in Hungary
  • Anyone who issues an invoice to another domestic taxpayer as long as the transaction occurs in Hungary, irrespective of the VAT amount.

What Does Electronic Invoicing Mean for Businesses in Hungary

Hungary electronic invoicing requirements mean that businesses must report e-invoices through a centralized system. Most importantly, the e-invoice data must be submitted through the XML invoice 3.0 format, as stated, through the NAV system.

What are the Consequences of Non-compliance?

Failure to comply with the new regulation on e-invoicing in Hungary can generate hefty fines for your company. Your business can incur a fine of up to HUF 500,000 (about EUR 1,400). So yes, you have a reporting obligation.

Why Should Businesses in Hungary Implement e-Invoicing?

Electronic invoicing is the future of invoicing, and it’s not surprising that Hungary is joining the list of countries, making e-Invoicing mandatory.

Companies that adopt e-invoicing for B2B and B2C transactions will:

  • Save time by using an electronic invoicing solution to eliminate unnecessary steps of the invoicing process.
  • Cut costs associated with paper invoices such as postal and processing fees.
  • Reduce mistakes and typos thanks to increased automation.
  • Offer better customer service. E-invoicing is more convenient since the delivery time is shorter.
  • Get paid fast because paying e-invoices is an effortless and super streamlined process.
  • Reduce paper consumption. Why use paper when you can send documents electronically?
  • Track invoices more efficiently. In fact, with a good service provider, you can also see when a customer has viewed your invoice.
  • Have a higher degree of transparency and control of their entire invoicing process through automated analytics and reports.
  • Leverage increased data integrity, reducing the risk of fraudulent bills.

Receiving and Processing Invoices in Hungary via a Web Service

As stated, invoices in Hungary must be sent to the NAV system in XML format via a web service. You can check out a comprehensive technical description of the web service and XML schemas on Hungary’s NAV website.

Transmitting e-Invoices from the ERP System

When automatically sending the invoice data from the NAV system, the invoice data is taken from the ERP system. Essentially, this implies that you must generate an invoice artefact for the NAV system. Also, you must set up a corresponding copy for the invoice in your ERP system for this to happen.

How Can Unimaze Help Businesses in Hungary Transmit e-Invoices from the ERP System?

As the figure below shows, the invoice data will be transmitted to the Unimaze cloud solution in the ERP export format such as SAP. Unimaze will then convert the ERP export into the NAV’s desired target format, based on the official Oracle Stream Analytics (OSA) XML schema, allowing for electronic invoice transmission. The web service will return a message confirming the delivery of your e-invoice as an XML document. Unimaze can customize the e-invoicing implementation to match your ERP system, enabling feedback from Xero, Microsoft Navision, Uniconta, SAP, etc.

Registering for e-Invoicing in Hungary

You must register via the NAV system to process/file invoices as per the Hungarian legislation. A Hungarian tax authority representative in your area will help you complete the registration. He/she will also create a technical admin in your ERP system. Granted the access info of this technical admin, an e-invoicing service provider like Unimaze can start the implementation process.

Why Choose Unimaze as Your e-Invoicing Access Point Provider in Hungary?

There are several reasons you’ll want to partner with Unimaze as your electronic invoicing service provider in Hungary including.

  • We support sending and receiving for the European Norm (EN 16931). The EN 16931 is an innovative revolution that enables automation, resulting in more savings and efficiency.
  • Our e-invoicing solution has a user-friendly interface for all your team members, from accountants to division managers and the IT department.
  • Our e-Invoicing software is quick and easy to implement. Furthermore, we provide excellent customer support while ensuring that your invoicing software is always up-to-date, as required by the Hungary tax authority.
  • We offer ready-made connections with all major ERP systems, including SAP, Navision, Business Central, MS Dynamics, and Xero.
  • We offer a simple PDF invoice-to-electronic invoice format, including the XML 3.0 via a single connection to your ERP system.
  • You get to leverage a cloud-based invoicing approval system, enabling faster payments.
  • Our solution supports the entire e-procurement process from the catalog to request quotations, purchase orders, invoices, and payments.

What Next?

The EN 16931 also helps harmonize the e-invoicing process, allowing businesses to benefit from easier cross-border trade relations. If you’re looking for an e-invoicing service provider in Hungary, look no further than Unimaze. Our cloud-based electronic solution will help you streamline your invoicing process, leverage real time invoice reporting, and help you avoid penalties for non-compliance.

Book a consultation session with one of our e-invoicing experts today.

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