Magazine: Online invoices on NAV’s desk

From 1 January 2016 invoicing software need to have a ‘tax inspection data providing’ function. With this feature data can be exported to the National Tax and Customs Administration’s (NAV) system. The data transmitted this way doesn’t exceed the data indicated on invoices issued by the given company. NAV stated that such data export is only allowed to be done as part of a tax inspection. With invoices issued before 1 January 2016 there is no obligation to make electronic data export possible to NAV. László Zara, president of the National Association of Tax Advisors and Bokkeeping Service Providers (MAKSZOE) opines that if data export is only implemented upon the request of tax authorities and there is no real-time data transfer (like in the case of online cash registers), the new function isn’t able to prevent any fraud or analyse risks, it can only speed up NAV inspections which are in progress. However, Mr Zara thinks that from this point real-time, continuous data providing to NAV is just one step away. The big question is what will happen to those enterprises, which only issue paper invoices? At the moment the situation is that all enterprises need to update their invoicing software to have a ‘tax inspection data providing’ function from the first day of next year. If they fail to do so and because of this a tax inspection is hindered, sole traders can be fined up to HUF 200,000 and enterprises may have to pay a fine up to HUF 500,000.