Hungarian government to launch new NAV online invoicing system on July 1st
Mihály Varga, minister of Finance, said NAV will make the system available to businesses free of charge. The system will supply companies with information on invoicing rules and help speed up the issuance of invoices
In a bid to slash tax evasion in Hungary, the government will launch the new NAV online invoicing system on July 1st.
With the testing phase now complete, Hungary’s tax authority is ready to roll out its new online invoicing system for small and medium-sized companies.
Mihály Varga, minister of Finance, said NAV will make the system available to businesses free of charge. The system will supply companies with information on invoicing rules and help speed up the issuance of invoices.
The tax authority states that in addition to reducing the black market economy, the online system will also significantly reduce administrative burdens on businesses.
Minister Varga encouraged businesses interested in the system to begin making the necessary preparations for it, given the fast-approaching launch date.
There are currently more than 210,000 businesses in Hungary that use some kind of invoicing software. NAV says it will provide SMEs with all the necessary assistance in adapting to the new system.
Minister Varga pointed out that the system will increase tax revenue. He cited a European Commission study which found that in 2015 tax evasion was half as prevalent in Hungary as in other countries in the region. The tax wedge in Hungary is 13.7 percent, compared with the regional average of 25.5 percent, he said.
“With the introduction of online invoicing, the rate of tax evasion in Hungary could fall even below 10 percent this year,” Minister Varga said.