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All Companies Accounts Can Be Seen by Tax Office From Now On

MTI-Hungary Today 2020.07.01.

The government has expanded its online tax accounting system, heralding a new era in tax returns and efforts to whiten the economy, a Finance Ministry official said.

From 1st July, online invoicing will provide the basis for VAT refunds made by the tax office and will help in the fight against the black economy, the State Secretary for Taxation, Norbert Izer noted.

The extension of the real-time Online Invoice System is of “huge significance” since the possibility of tax evasion, even by the smallest businesses, can be reduced to a minimum, he said.

Estimates indicate that online data reporting has added 200-250 billion forints (EUR 560m-700m) in revenue in a single year, he said, adding that the system’s expansion could add a further tens of billions of forints.

Gov’t: Tax Changes in Force from July 1 to Save Taxpayers HUF 350 Billion

The tax authority NAV will not penalise non-compliance until 30th September if businesses joining the system in the meantime register with NAV before issuing their first invoice. The number of people registering has increased by around 30 percent, he said. By 29th June, more than 711,000 people had already registered.

Izer said even by international comparison, Hungary’s online tax system was “exemplary”, helping to curb VAT fraud and encourage businesses to go digital. Also, NAV will prepare a draft VAT return for domestic businesses after receiving the data online, he added.

Featured photo illustration by pixabay.com