Hungary is gearing up for notable changes in its e-Invoicing regulations. The Hungarian Tax Authority has released draft legislation aimed at enhancing the accuracy and reliability of invoice data reporting. If approved, the changes will come into effect on 1 July 2025.
From warnings to errors: a tougher stance
A major proposed shift is the reclassification of 21 existing “warning” messages in the Online Invoice System into “error” messages. While a “warning” allows invoice data to be accepted despite minor issues, an “error” results in the outright rejection of the submission. This change is meant to improve data quality and support the upcoming e-VAT system rollout.
Increased penalties for non-compliance
To reinforce compliance, the tax authority plans to double the maximum penalty for non-compliance, from HUF 500,000 to HUF 1 million. This increase highlights the urgency for businesses to ensure accuracy and timeliness in their reporting.
New data matching procedures
Another key change is the introduction of a data matching proceeding. If discrepancies arise between the reported invoice data and the actual VAT returns, the Tax Authority can initiate a correction process. Taxpayers would then have 15 days to amend either the invoice report or their VAT return.
Public consultation still ongoing
The draft legislation is currently open for feedback from taxpayers and software providers. While the Tax Authority will review all comments, the expectation is that the proposed changes will be implemented largely as drafted.
What businesses should do now
Businesses operating in Hungary should:
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Review their current e-Invoicing setup
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Identify potential risks or inconsistencies in their invoice reporting
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Prepare for stricter validation and tighter deadlines
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Ensure software solutions are updated and compliant
Additional resources
You can view the draft law here: Draft Law PDF
It’s a must-read for accounting teams, tax advisors, and ERP/software providers working with Hungarian VAT reporting.
