Invoicing rules in Hungary

Invoicing rules

Invoicing rules

Issuing invoices in Hungary is strictly regulated by ChapterX of the VAT Act CXVII of 2007.

If you sell any products or services, you will obliged to issue an invoice. This cannot be done in simply in Word or Excel, but strict complience is required to the rules set out in the law.

Information that is requested to be printed on the invoice

General Information

  • Invoice Number (a sequential number, which uniquely identifies the invoice)
  • Date of issue of the invoice
  • Description/nature of the goods or services
  • Quantity of the goods supplied or the extent and nature of the services rendered
  • (If applicable) the Amount of Cash Discount
  • Taxable amount per VAT rate or exemption
  • VAT rate(s) applied
  • Individual VAT charge at each VAT rate
  • Total VAT amount
  • Total Invoice amount
  • Invoice Currency
  • Reference to the appropriate provision of the EC VAT Directive
  • Reference to the corresponding national provision
  • Check the original or copy invoice
  • In case of foreign currency, check the foreign exchange rate/Vat amount in local currency
  • Check if the vendor is EU/NonEU member

Supplier Information

  • Full name of the supplier
  • Full address of the supplier
  • The VAT identification number of the supplier

Customer Information

  • Full name of the customer
  • Full address of the customer
  • The VAT identification number of the customer (in some special cases, when the customer is liable for the VAT declaration and payment)

 

Invoicing can be done in two methods

  • You may buy an “invoice booklet” in Hungarian office supply stores with your VAT number. This will be stricltly registered at the shop. Invoices are sequentially numbered. You can be make out the invoice in handwriting, and the booklet will automatically carbon copy that into two more.  You shall give the original to your client, the first copy to your accountant, and keep the second copy in the booklet. Don’t forget that you are liable for all your invoices, and also for keeping the third copies.
  • You may also use Hungarian invoicing software. The software must be compliant to special Finance Ministry decree for the compliance of which the vendor of the software must issue a declaration. Therefore foreign software are not acceptable.

 

Contact us if you are interested in setting up a company in Hungary.

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