With the testing phase complete, tax authority NAV is ready to launch its online invoicing system for small and medium-sized companies on July 1, Finance Minister Mihály Varga told MTI on Thursday.
NAV will make the system available to businesses free of charge, Varga said. The system will supply companies with information on invoicing rules and help speed up the issuance of invoices, he said. In addition to contributing to the whitening of the economy, the online system will also significantly reduce administrative burdens on businesses, the minister said.
He encouraged entrepreneurs looking to avail of the system to begin making the necessary preparations for it, given the fast-approaching launch date. Currently, more than 210,000 businesses in Hungary use some kind of invoicing software, the minister said. NAV will provide SMEs with all the necessary assistance in adapting to the new system, he added.
Varga pointed out that the system will increase tax revenue. He cited a European Commission study which found that in 2015 tax evasion was half as prevalent in Hungary as in other countries in the region. The tax wedge in Hungary is 13.7 percent, compared with the regional average of 25.5 percent, the minister said, adding that
“With the introduction of online invoicing, the rate of tax evasion in Hungary could fall even below 10 percent this year.”
featured image via NGM