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The National Tax and Customs Administration of Hungary (NAV) has launched the electronic VAT system (eÁFA) on the first day of the year, the office told MTI on Monday.
VAT returns can be submitted for the first time from February 1, but certain functions of the system can already be tested now, the office said, adding that the electronic VAT system supports the electronic and accurate fulfillment of tax obligations, reduces administration, and serves the data needs of taxpayers’ management systems.
Users will be able to access eÁFA via a web interface or machine-to-machine connection from January 1.
According to the announcement, eÁFA will offer query services in January: taxpayers can now query the data available to NAV (online invoice data, online cash register receipts, and customs procedures data) and tax codes. After logging in, the system will show the source data received in December 2023, which will later be supplemented by the source data that will be continuously received in January 2024. Taxpayer details will also be displayed, and as a result of automatic tax coding, the VAT position can be tracked in the system.
From February 1, all functions will be available, in addition to those mentioned above, such as changing the tax code, closing the period, preparing a draft return, pre-auditing, and submitting a return.
Therefore, the first time that the obligation to file a return can be fulfilled in the eÁFA system is for the tax assessment period including January 1, 2024. In practice, this means that starting from February 1, 2024, source data can be edited, returns prepared and filed.
Taxpayers with a monthly frequency of VAT returns can file those for the first time in the system until February 20, 2024, taxpayers with a quarterly frequency until April 20, 2024, and taxpayers with an annual frequency for the first time in 2025.
The new system offers a number of advantages, such as the possibility to query the relevant NAV data, data on invoices received and issued, and data on customs procedures. Tax records can also be created in eÁFA, making it easy to comply with tax return obligations. The new approach to VAT return preparation is expected to simplify the legal compliance of businesses and accountants, and the reduced administration should encourage a higher level of digitization.
Via MTI, Featured image: Pixabay