[ad_1]
However, the situation in the media market is constantly changing: if you want to support quality business journalism and want to be part of the Portfolio community, subscribe to Portfolio Signature articles. Know more
Below is the writing from Lilla Németh, RSM’s tax business director.
Invoicers in Hungary are facing another significant change, and farmers and service providers will also have to adapt to a new set of rules. The deadline for the application of the NAV 3.0 online invoice scheme, which has been published in the last days, is January 1, 2021. However, the 3.0 online invoice will start from that moment. – presumably based on the preparation experience of previous periods – the Ministry of Finance has already announced that until April 1, 2021, it will provide additional time for farmers to prepare and change their systems within a sanction-free period.
IT, tax and accounting specialists will also have another task, as the version change will put farmers and developers of billing programs and data reporting systems at the forefront of new tasks.
The online invoice report is modified on two fronts:
- On the one hand, the range of accounts that are reported is expanding (covering almost all sales accounts),
- on the other hand, a new schema (3.0) should be applied to the report.
Why do we need another online account change?
It has been two fleeting months since the introduction of the 2.0 scheme on July 1, why do we have to deal with data provision again in companies and taxpayers? Well, several reasons for this are clear in NAV.
As of January 1, 2021, invoices issued to individuals, as well as community and export transactions, must also be notified. With that, actually
achieves the integrity of the online billing system, as all invoices issued by farmers will be reviewed by the tax office.
To mark the appropriate data content, significant improvements to 2.0 were required.
There will also be a significant change in the field of electronic invoicing, as the XML 3.0 according to the schema will also be considered as an electronic invoice. If the taxpayer declares it in his data supply, an electronic invoice will also be sent via XML. In such a case, it will be necessary to provide the full data content of the invoice, the content of mandatory data according to the VAT Law will not be sufficient, so we can expect a change in legislation. At the same time, since the name and address data are mandatory on the invoice, their inclusion and presentation in XML is expressly prohibited for individuals due to data protection considerations: NAV is differential, the XML of an invoice issued to a particular customer cannot be considered an electronic invoice.
XML as an electronic invoice is another step towards an electronic VAT return
The Fair Accounts XML Database provides a wealth of opportunities and tasks for both companies and consultants. In the field of financial management, digitization has already appeared in many forms, more and more processes can be automated – due to regulatory pressure, more flexible work, multiple and remote accesses – and therefore faster. Now, in addition to routine tasks, it will also be possible to create, refine statements or compile XML-based parsing with software support. Besides saving time, errors can also be minimized by relying on logic and machine learning.
With the modifications specified in the provision of invoice data online, NAV, such as HRM, takes another important step towards preparing VAT return projects for farmers (electronic VAT return). Therefore, in scheme 3.0, the tax authority again requests a little more data from the farmers. The exact details are not yet known, but new types of expectations will be included in the 3.0 scheme, while the rules of online invoice reporting and VAT law do not completely overlap, what and how should be included in the invoice, invoice report. In turn, the two laws must be met at the same time for the data reporting validated by NAV, so again a combination of technological skills and tax advice is required for the implementation of 3.0.
The digitization of taxation advances in the direction of the electronic production, sending and processing of data. This is a savings, especially if we are thinking of a new world without contact due to the epidemic, or if we are looking for a paperless and environmentally friendly office. But it is also worth considering now what farmers and service providers can do, how they can be winners in a transformation of this magnitude.
Lilla Németh, Business Tax Director, RSM
Cover image source: MTI Photo / Balázs Mohai
[ad_2]
