The 2018 changes meant that invoices with a VAT equal to or above 100.000 HUF between two Hungarian tax payers had to be sent to the NAV online system. This remained in effect until July 1st, 2020.
For this reason, companies already had to register on the NAV website (https://onlineszamla.nav.gov.hu) and create a technical user. Its purpose is to connect the user's invoicing system with the NAV system.
The 100.000 HUF limit was suspended in July 2020. This means that every invoice issued to domestic tax payers needs to be submitted to NAV regardless of its VAT value. This does not include private persons or non-domestic partners.
We had to implement the changes made necessary in July, which is why you may have come across new fields and messages during your invoicing processes. The following description of the changes will help you understand why certain changes were essential and what their function is.
You will see two new checkboxes when creating a new customer:
Foreign customer with Hungarian tax number: This lets the program know whether to submit the foreign customer's invoice to the NAV system. Since there are foreign companies with Hungarian tax numbers, it is not enough to just select the country. The NAV system requires every invoice bearing a Hungarian tax number to be submitted.
Private person: This is pretty straight forward. If the customer is a private person and therefore does not have a tax number, their invoice does not have to be submitted.
This can be entered either in the customer master data (default setting for all invoices) or directly when issuing an invoice. In the latter case, select the Customer data tab and choose the appropriate checkbox.
The invoice recipient's country is essential information. The program checks the customer's country during invoicing which determines which subsequent data is necessary.
If the country is “HU - Hungary”, then the program will check the tax number field and whether the “Private person” checkbox has been activated. Now the program knows whether the invoice needs to be submitted to NAV or not.
In case of foreign customers the program checks the aforementioned “Foreign customer with Hungarian tax number” field and knows what to do.
If the customer country field is empty
The program needs to know which country the customer is from. If it cannot be retrieved from the customer master data then it will ask you during the invoicing process to provide this information. In this case, you will see the message below:
Missing tax number
The program needs to know whether the invoice you are creating needs to be submitted to NAV. Therefore, the distinction between private person and tax paying customer needs to be clear. If the program cannot determine this based on the provided data, you will receive the following message:
Foreign customer
As mentioned earlier, if a foreign customer has a Hungarian tax number which they want on the invoice, then the invoice needs to be submitted to NAV. This is why the program will ask you the following:
Only for companies with headquarters outside of Hungary
If you are a company based outside of Hungary but you use a Hungarian tax number to issue invoices, then your invoices need to be submitted to NAV.
Check the following checkbox to ensure proper invoice registration.