Hungary moves towards mandatory electronic invoicing under ViDA

B2B electronic invoicing in Hungary

Hungary continues to strengthen its digital tax control model and is positioning itself as one of the most advanced countries in the European Union in terms of VAT reporting. The latest regulatory initiatives by the government and the tax authority (NAV – National Tax and Customs Administration) point to a profound transformation of the invoicing and receipt ecosystem, in line with the European VAT in the Digital Age (ViDA) package.

In 2026, the Ministry of Economy and the Hungarian tax authority published a concept paper to implement the ViDA  package in Hungary. It provides a comprehensive overview of the main changes to be prepared for in the area of invoicing and information provision.

The main points of the plan include:

• Mandatory electronic invoicing for:
  • domestic B2B transactions between Hungarian companies
  • intra-Community B2B transactions
  • B2G transactions (companies with public administrations)
• Electronic submission of invoice data to the tax authority based on the content of the invoice itself.
• Use of structured, machine-readable formats (XML) to enable automation and tax control.

According to current plans, the electronic invoicing systems will initially be opened for testing in 2028, allowing obligated parties to use it on a voluntary basis and test it before the final system is launched.

Electronic invoice model in Hungary: Peppol 5 corners

Hungary plans to adopt a five-corner model consisting of: the taxpayer seller, the seller's invoicing program or service provider, the taxpayer buyer, the buyer's accounting system or service provider, and the tax authority.

Hungary will join the Peppol network to enable secure transmission channels, although the use of Peppol will remain optional for businesses. The NAV's own invoicing program will operate independently of Peppol.

Invoices issued for each transaction must be generated in a standardized, machine-readable XML format, both in B2C and B2B relationships, with the aim of automatising administrative processes. It will still be possible to view the graphic representation of the invoice, but this must necessarily be generated from the XML file, as this will be the only format considered valid in the event of an inspection by the tax authority.

Currently, in certain regulated sectors, such as the energy and utilities sector, there are already specific mandates requiring the use of structured electronic invoicing, typically in standardized XML formats and through electronic channels defined by the administration or by the regulatory bodies themselves.

B2C e-Invoicing: New reporting obligation for digital receipts from 2026

Hungary will introduce a general obligation for all businesses to report digital receipt data.

The key dates for the new system are:

• September 1, 2026: All businesses must report their receipt data to the tax authority.
• Businesses that already use cash registers connected to NAV or e-cash registers will automatically comply with this obligation.
• Companies that do not use connected systems will have to send their receipt data to NAV within a maximum of three days, which will require new processes and technological solutions.

The aim of this measure is to close the information gap in retail transactions by aligning receipt reporting with the existing system for invoices.

Transition to e-cash registers

This obligation is part of a broader reform of the tax system. Hungary is gradually replacing traditional cash registers with e-cash registers, devices or digital solutions capable of transmitting information directly to the tax authorities.

The planned timetable includes:

• 2025: entry into force of the regulatory framework for e-cash registers and e-receipts.
• 2026: mandatory reporting of digital receipts.
• July 1, 2028: definitive elimination of traditional cash registers and complete transition to the new digital system.

This model will reduce administrative costs, eliminate paper files, and improve real-time tax control.

B2G electronic invoicing in Hungary

Since 2018, companies that supply goods or services to government entities and public bodies are required to issue their invoices in structured electronic format, complying with the technical requirements defined by the administration.

Electronic invoices addressed to public bodies must be transmitted through the official channels established by the National Tax and Customs Authority (NAV), which guarantees the complete traceability of the information, the authenticity of the document, and compliance with current tax regulations.

B2G invoices must be generated in a standardized XML format, which allows for automatic processing by public administration systems and facilitates control, validation, and archiving processes. This approach ensures greater transparency, reduces errors, and speeds up payment cycles in the public sector.

RTIR e-Reporting System in Hungary

RTIR (Real-Time Invoice Reporting) is the real-time invoice reporting system required by the Hungarian National Tax and Customs Administration (NAV). Under this system, all VAT-registered companies must electronically transmit invoice data to the tax authorities in real time, immediately after issuing each invoice.

VAT returns for invoices issued must be submitted electronically, without human intervention, to the NAV (National Tax and Customs Administration). This model requires all VAT-registered companies, whether resident or not, to send their invoice data in real time to the tax authority via the Online Számla platform.

The system was introduced in 2018, initially limited to certain B2B transactions exceeding a minimum VAT threshold, with the aim of improving tax control in transactions with a greater economic impact.

A turning point came in July 2020, when tresholds were eliminated and the reporting obligation was extended to all invoices, regardless of their amount or the type of customer. From that moment on, both B2B and B2C transactions became subject to real-time reporting to the tax authority.

Subsequently, from 2021 onwards, the scope of the system was further expanded to cover virtually all transactions relevant for VAT purposes, consolidating Hungary's position as one of the most advanced countries in Europe in terms of digital tax control and electronic reporting.