From the 1st January 2024, Hungary’s National Tax and Customs Administration (‘NAV’) intends to launch a new platform, eVAT, that enables taxpayers to have access to pre-filled VAT returns.

This new platform is based on transactions level data that are reported by taxpayers on the RTIP regime, which requires near live submissions of B2B and B2C sales invoices since 2018 and 2021 respectively, and it will likely replace the existing monthly Control Statement for domestic sales and purchases in Hungary.

The eVAT platform will collect the above mentioned transactions data, together with customs documentation and cash register details and will provide taxpayers with two different routes to be utilised, depending on the size of the involved businesses.

Small taxpayers will have access to an online portal where they can add missing transactions, make changes, run basic analytics and have access to their pre-filled VAT returns.

Larger taxpayers will be able to map their own ledgers / tax codes to the platform standard tax code map, in order to be able to submit their transactions details in electronic (XML) form, using machine-to-machine ('M2M') communication via a dedicated API. The platform will validate the file structure and format and cross-check data and then the taxpayer will be able to check their pre-filled draft VAT return. This process will help identifying discrepancies between taxpayers' data and NAV's RTIP records that can be immediately resolved, avoiding VAT audits.

eVAT will be open to resident Hungarian businesses, as well as foreign business with Hungarian VAT registration number, performing taxable supplies in Hungary.

This new eVAT platform will help reducing administrative burdens for taxpayers and VAT authorities, reduce the number of tax audits, tax frauds and the VAT gap and provide taxpayers with useful analytic tools to further review their VAT data.

If you have any questions on the impact of the above changes on your business, please contact us here