XML invoicing – the future of e-invoicing
As of 1 April 2021, taxpayers are obliged to perform their real-time invoice reporting obligation via the Online Számla system version 3.0 (3.0 XML schema). The new 3.0 schema introduces the XML e-invoicing method, which enables taxpayers to include all the invoice data of an invoice image in the XML and report all of them to the Tax Authority as a so-called “XML e-invoice”. By introducing the new reporting schema a number of possibilities became available (including the XML e-invoice) in terms of administrative simplification and cost reduction of the invoice processing and bookkeeping processes of the companies.
1 July 2021
Applying the XML e-invoicing provides a cost-efficient and simple solution for taxpayers, as it does not require significant development or implementation of a 3rd party solution. Besides, the invoice issuance is managed within the certified and trusted official system of the Tax Authority in real-time and the customer can download such electronic invoices directly via the Tax Authority’s system, therefore taxpayers can avoid sending the e-invoice by other electronic channels by applying expensive e-signature solutions. This results that significant time and cost can be saved in connection with the invoice issuance.
The XML e-invoicing is also efficient from incoming invoice perspective, since the issued invoice will be made available to the recipient in real-time and creates certain opportunities in the field of invoice processing (e.g. pre-booking) and cross-checking, which could make the accounting procedures more sufficient. However, the Tax Authority’s system is currently unable to notify the recipient regarding the issuance of an XML e-invoice, therefore the taxpayers are recommended to develop or purchase a software, which can monitor the Online Számla system for this purpose.
The XML e-invoicing is currently applicable solely in case of B2B transactions concluded between taxpayers with Hungarian VAT ID, therefore B2C transactions and transactions concluded with foreign entities – which does not have a Hungarian VAT ID – cannot be covered with it.
For the application of the XML e-invoice, the customers have to be able to access the Tax Authority’s portal to download the XML invoices, since during the application of this method these invoices should be considered as the only valid VAT invoice regarding the given transaction. Considering this, the invoice should be kept and archived in the XML format as well.
In summary, the XML e-invoicing method creates a technically feasible and cost-efficient solution for both the issuer and the recipient of the invoice and therefore this method should be taken into consideration when implementing an e-invoicing method at the company.
Deloitte Hungary has a dedicated tax technology team who can help in the introduction of the XML e-invoicing or other tax technology developments, should you need further information please reach out to us.