Hungary: NAV issues statements on amended VAT Act, announces transition period
The Hungarian National Tax and Customs Administration ('NAV') issued, on 6 July 2020, a Statement on the amendments of Act CXXVII of 2007 on Value Added Tax ('the VAT Act') that entered into force on 1 July 2020 ('the Amendments Statement'). In particular, NAV announced that under the amended VAT Act, the monetary condition for the obligation to provide information is abolished and that all invoices issued by a taxable person to another domestic taxable person for a domestic transaction (excluding intra-community supplies of goods), regardless of the VAT content of the invoice, must be reported to NAV. Moreover, NAV announced that because the COVID-19 ('Coronavirus') emergency situation prevented taxpayers to adequately prepare for the new legal obligation, it will grant a transition period at least until 30 September 2020, during which it will not impose a penalty if the taxpayer fails to fulfil their obligation to provide the required account data.
The NAV issued, on 8 July 2020, an additional Statement ('the Additional Statement') highlighting that the amendments of the VAT Act require that the first eight digits of the tax number of the person purchasing a product or using a service must be indicated on the invoice issued for a domestic transaction. However, NAV stressed that this is only necessary if a person subject to VAT acquires a product or uses a service, and held that an invoice can therefore continue to be issued without a customer tax number if the person acquiring the product and using the service is not a VAT payer. Furthermore, the NAV provided examples for situations in which the requirements do not apply such as a national or foreign private person or an international organisation.
Finally, NAV held that if a customer who purchases the product and uses a service declares, orally or in writing, that they do not have a tax number or are not subject to VAT in a specific transaction, the invoice does not have to include a customer tax number.