Hungary – Public Consultation on New Mandatory e-Invoicing System
The Hungarian National Tax and Customs Administration (NAV) has initiated a public consultation on implementation of a new mandatory Business-to-Business (B2B) and Business-to-Government (B2G) e-invoicing and e-reporting system. This proposed system represents a significant shift from the current real-time invoice reporting (RTIR) model to a full e-invoicing mandate, aligning Hungary’s digital tax landscape with the European Union’s broader “VAT in the Digital Age” (ViDA) initiatives.
The consultation invites feedback from businesses, taxpayers, and software providers regarding the proposed changes until 20th January 2026.
Key Proposed Changes and Features
The new system aims to streamline the current process where businesses report invoice data in real-time, but still issue invoices in various formats (including paper or PDF). The key features of the proposed mandatory e-invoicing system include:
– Mandatory B2B and B2G E-Invoicing: All domestic B2B and B2G transactions will require the issuance of structured electronic invoices.
– Adoption of Peppol: The Peppol Network is planned to be the primary method for e-invoice exchange, moving towards a standardised and secure channel.
– Structured Format: The new mandate will require a specific, structured electronic format, contrasting with the current flexibility in format for the RTIR system.
– Exclusion of B2C: Business-to-Consumer (B2C) transactions are currently excluded from the proposed mandate.
Timeline
Hungary has been a leader in digital tax administration since 2018 with its robust RTIR system (Online Számla platform), which requires all VAT-registered businesses to report invoice data to the NAV in real-time. This system has been effective in reducing the VAT gap, and the new mandate is the next step in the country’s digital transformation.
The current public consultation is ongoing, and the tax authority will review all comments from stakeholders. The specific go-live date for the full mandate is still to be determined based on this feedback, but the government is moving forward with phased implementations in specific sectors:
– 1st July 2025: Mandatory e-invoicing came into effect for transactions within the electricity and natural gas sectors for non-private individuals.
– 1st January 2026: Mandatory e-invoicing will be introduced for water utility services to businesses.
Impact on Businesses
Businesses operating in Hungary should take following key steps to prepare for these changes:
– System Upgrades: Companies must adapt their ERP and accounting software to handle the new structured e-invoicing format and exchange methods (likely Peppol).
– Compliance: Ensuring compliance with the new rules is crucial to avoid potential penalties. Businesses should monitor NAV’s official announcements and technical documentation available on the NAV website.
– Efficiency: The transition, while requiring initial investment, is expected to streamline invoicing processes and provide greater efficiency in the long run.
The public consultation offers a vital opportunity for businesses to provide input and help shape the final implementation of Hungary’s advanced e-invoicing system.