Hungary takes the next step towards mandatory electronic invoicing under ViDA
Hungary is moving towards mandatory electronic invoicing as part of the implementation of the European ViDA package. The measure will affect not only corss-border transactions, but also domestic ones.
A voluntary testing environment is planned from 2028 onwards before the system finally comes into force.
B2B electronic invoicing in Hungary
The Ministry of National Economy, in collaboration with the National Tax and Customs Authority (NAV), has recently published an informative document on the implementation of ViDA in Hungary. It provides a comprehensive overview of the main changes to be prepared for in the area of invoicing and information provision.
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.
One of the most significant developments in electronic invoicing is that the legislators plan to make the issuance of electronic invoices mandatory not only for cross-border transactions but also for domestic transactions. Paper invoices may only be issued in very specific cases, such as sales to individuals or export transactions, and even then, mutual agreement between the parties will be required.
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.
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.
