Under Subsection (1), Section 169 of the VAT Act, from January 1, 2017 the customer’s tax number must also be indicated on the invoice, if the VAT content equals or exceeds HUF 100,000. (This limit was EUR 1 million in 2016.)
What exactly does this mean and who are concerned?
This legislative change is preparing a new rule applicable from July 1, 2017 that from the second half of the year, in case of acquisition of goods and use of services, a domestic detailed summary report shall be prepared of invoices, the output VAT of which equals or exceeds HUF 100,000.
Of invoices that individually do not reach the limit, but the aggregate amount of VAT of the incoming invoices received from the same supplier in the same reporting period reaches that, a consolidated report shall be prepared.
For sale of goods and provision of services, the rule is slightly different: a detailed report shall be provided on form 1765M in case of invoices issued in certified form (e.g. invoice pad) the output VAT content of which equals or exceeds the HUF 100,000 limit.
For invoices prepared and issued with an invoicing program the law will require electronic reporting provided that the conditions are met.
In cases where the law provides for a domestic detailed summary report, the taxpayer must indicate the following information:
– the first eight digits of the tax number or group identification number of the partner (customer or supplier),
– the sequential number of the invoice,
– the date of completion,
– the VAT base,
– the amount of VAT.
It is obvious that this change imposes significant additional administrative work on the accountants and those preparing tax returns.
Therefore, we recommend our clients to contact the developer of the program they use in the first half of the year in order that the data required for the reporting mentioned above could be extracted as quickly as possible and exported to the tax return.