New Hungarian eVAT M2M system available from 1 January 2024

We are starting to get used to the fact that many terms used in the IT industry are increasingly used in the tax sphere and directly affect it.

We also face such a situation in Hungary, as the government intends to introduce additional facilities for taxpayers and tax authorities from January 1, 2024, based on a new platform, M2M eVAT. The system offers an alternative to preparing and submitting VAT returns via the ÁNYK framework and will be available to taxpayers from 1 January 2024.

The new eVAT M2M platform is expected to enable the submission of VAT returns in electronic (XML) form, using machine-to-machine communication via a dedicated API directly to the GitHub platform maintained by the tax authorities. As the xsd structure proposed by the government is expected to contain more and more detailed information about the taxpayer's business operations than the standard VAT return well known in Hungary, the eVAT M2M solution is likely to contribute to:

• Reduction of administrative burdens for taxpayers and tax authorities,
• Reducing the number of taxpayer inspections and inquiries from tax authorities,
• Increasing the effectiveness of the fight against tax fraud and reducing the VAT gap.

It is expected that eVAT will replace the existing monthly Control Statement for domestic sales and purchases in Hungary.

There’s more you should know about e-invoicing in Hungary – learn more about the new and upcoming regulations.