Hungary’s VAT reporting system is facing a significant transformation. According to plans announced by the Hungarian Tax Authority (NAV), the General Form Filling Framework Program (ÁNYK) will be phased out by the end of 2026, and VAT returns will gradually be submitted through the eVAT (eÁfa) system.

The transition is driven not only by Hungary’s digitalization efforts but also by the European Union’s VAT in the Digital Age (ViDA) initiative, which aims to create a tax system increasingly based on transaction-level digital data.

The objective is clear: faster, more transparent, and more automated tax administration processes. The real question, however, is how smoothly this transition will work in practice.

The End of an Era

Many people tend to forget that ÁNYK has been a cornerstone of the Hungarian tax administration system for well over a decade. It was not perfect, nor was it particularly modern, but it was reliable and predictable. Accountants knew it well, software providers adapted to it, and business processes were built around it.

For this reason, not everyone in the profession welcomes the rise of eVAT with complete enthusiasm. This is not because accountants oppose digitalization. Rather, many practical questions remain unanswered. Most professionals simply want to see whether the new system will genuinely simplify their work instead of introducing additional administrative burdens.

The Transition Affects More Than Just Accountants

The implementation of eVAT is not merely changing the way VAT returns are submitted. It impacts the entire process, from accounting software and internal controls to tax data reporting mechanisms.

The new eVAT 2.0 data structure published by NAV, along with machine-to-machine (M2M) developments, clearly demonstrates that the tax authority is investing substantial resources into modernizing the system and is moving forward at an impressive pace.

However, market participants must keep up with the same speed. Accounting software developers need to redesign their systems, accounting firms must establish new workflows, and employees need training to adapt to the new environment. According to several industry experts, the available testing period is relatively short, especially considering the scale of the transformation.

A Sole Practitioner and an Accounting Firm Face Different Challenges

Although the eVAT system offers multiple submission options, the practical difficulties may vary significantly depending on the user.

For a small business or an independent accountant, NAV’s web-based interface may be a workable solution. Here, tax authority-prepared data can be reviewed and supplemented where necessary.

For an accounting firm handling hundreds or even thousands of tax returns, however, the challenge is much broader than simply submitting declarations. In such environments, process management, data verification, authorization control, and coordinating various client systems become critical tasks.

Many professionals feel that while NAV understandably approaches the issue from the perspective of taxpayers and technological advancement, the unique operational realities of accounting firms have received relatively limited attention so far. In day-to-day practice, accountants are not working with a single company’s data but often managing information for hundreds of clients simultaneously.

What Does eVAT Promise?

One of the most significant advantages of the new system is that NAV can prepare draft returns using the data already available to the tax authority while also performing automatic validations on submitted information. This may help identify errors, discrepancies, and certain tax risks at an earlier stage.

In the longer term, machine-to-machine communication could enable direct interaction between corporate accounting systems and NAV, substantially reducing the need for manual data handling.

The Coming Months Will Be Critical

One thing is already clear: the digitalization of taxation is an irreversible process. eVAT is coming, and ÁNYK will soon become history.

The key question is no longer whether the transition will happen but whether NAV, software developers, businesses, and accounting professionals will be able to move forward at the same pace.

The current sentiment within the profession may best be summarized as cautious optimism. Most stakeholders recognize the opportunities offered by the new system, but many questions remain unanswered. Will the necessary developments be completed on time? Will every accounting software solution be able to communicate effectively with the new system? Will business processes genuinely become simpler?

The answers will likely emerge only after the first live reporting periods. Until then, one thing is certain: for the accounting profession, the months ahead will be defined by preparation, adaptation, and readiness for change.

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