e-Tax Compliance

Frequently asked questions: What you need to know about RTIR, online invoice report in Hungary

17.04.2018
RTIR Hungary FAQs

Hungary is getting ready for its RTIR real time invoicing data reporting from 1 July 2018, when its “Online Számla” will entry into force. This new system will affect internal procedures in companies when they register and prepare the information to be sent.

We have prepared a series of FAQs to answer the most common doubts that might arise in the affected companies.

    From 1 July 2018, who has to comply with real-time invoice data reporting to the NAV Online Invoice System (RTIR)?

  • The binding nature of real-time invoice data reporting within a maximum term of 24 hours by electronic means affects invoices that include VAT in excess of 100,000 HUF (approximately EUR 320). This new legislation will affect all companies registered in Hungary for VAT purposes, even if they do not have a physical presence in the country.

    What invoices must be reported?

  • Invoices issued in Hungarian territory with VAT exceeding 100,000 HUF must be reported. Invoices issued to private individuals should not be reported.

    How do I adapt the invoice data exported from my ERP to the required XML schema?

  • Using a technology provider such as EDICOM, the exported data from the ERP will be treated and transformed to the format required by the NAV, in accordance with the requirements specified by the HU TA. EDICOM can integrate with the main ERPs on the market (SAP, Oracle, Microsoft Dynamics, Infosys, BaaN, Visual Apollo, GriffSoft, abas, Cobra, JD Edwards).

    What do I need to connect to the NAV?

  • The taxpayer must register in the NAV and create a Technical User that is then given to its technology provider so that a connection with the Hungarian tax office can be established.
  • For the technology provider, the connection with the NAV will be via webservice and without any human intervention. Invoice reports will be sent online and without manual intervention. It is necessary to have a technology provider that can establish an automatic, safe and reliable connection for immediate transmission of the invoice data.

    Is a digital signature required to sign the XML file?

  • No, an XML digital signature is not required.

    How will the NAV report on the status of the invoices transmitted in XML format?

  • The NAV will perform a validation of each document and, if it meets the established requirements, will return a message to the sender with the status of each invoice sent. This message will be electronic and in XML format, it is possible to integrate these replies into the ERP application of the issuer for greater ease and speed in processing the information.
  • The NAV will report three notifications: a technical error which prevents the NAV from accepting the invoice; warning of a semantic error, but one that does not prevent the invoice from being accepted; and confirmation of acceptance of the invoice.

    What fines may my company be faced with?

  • Fines for late submission of VAT data may amount to HUF 500,000 (EUR 1700) per invoice.

    What difference is there with the “Data Export” requirement (SAF)?

  • The main difference is that the SAF electronic accounting document in Hungary responds to requirement of the tax authority. Companies must be ready to be able to generate it, but they will only send it when required by the HU TA.
  • However, a taxpayer may choose to voluntarily send the data of all its invoices without taking into account the filter of the 100,000 HUF in VAT. This reporting of all invoices would exempt the taxpayer from sending the SAF file.

    What information do the XML messages contain?

  • The message contains practically all the data on the invoices. There are some mandatory minimum data fields established by the NAV, but the messages may also contain conditional fields to include additional information selected by the taxpayer.

    How can I ensure archiving of invoices and notifications?

  • Both the reports sent to the NAV and the replies received are stored safely in a solution that guarantees the integrity of the documents thanks to the safekeeping of eIDAS certified electronic seals service awarded to EDICOM. This qualified trust service ensures the documents stored will have a legal value for third parties.
  • EDICOM, as a Qualified Trust Service Provider under the eIDAS Regulation, provides its users with a solution that guarantees permanent access and 100% recovery of the documents uploaded to the platform, as well as management of evidence that allows demonstrating the integrity of the documents stored and giving them probative value before the law.

    What happens if the NAV platform is unavailable due to breakdown, maintenance or to failure of the internet service?

  • If the Hungarian platform crashes when a report is being sent, the technology provider must send at least the mandatory fields in the 24 hours following the recovery from the system crash.
  • In the event of a crash of the NAV, EDICOM will launch a permanent monitoring process to reestablish the connection as soon as possible.

    Can I reconcile the EDICOM solution with mandatory local legislations in other countries?

  • Yes, the EDICOM electronic invoicing and electronic VAT reporting solution is global. You can manage the different binding natures within each country from a single platform, thus complying with the technical and legal requirements of the tax authorities.
  • The EDICOM International e-Invoicing Observatory performs active knowledge management to ensure its solution is permanently up-to-date with regulatory changes that frequently take place in the different countries it covers (formats, tax control processes, communications, signatures, etc.).

Comply with electronic VAT returns globally from a single platform

Tax agencies from all over the world are moving toward electronic tax compliance. However, in a global market like the current one, each country continues to dictate its own rules. This hinders the adaptation of companies, which find technology both a challenge and an opportunity in equal proportion.

EDICOM provides taxpayers with a global solution for B2B2G electronic communications that meets the different tax compliance systems developed in different countries. The system enables companies to perform EDI, electronic invoicing and file electronic VAT returns for any region in the world. This means all operations can be centralized on a single platform, streamlining the tasks and reducing the economic costs.

Learn more about the potential benefits for your company

Get in touch with an EDICOM representative