Across the globe, many governments have been introducing measures to increase tax efficiency, reduce the VAT gap and prevent fraud.
The SAF-T (abbreviation for Standard Audit File for Tax) is an internationally standard file in XML format, which is used to facilitate the treatment and exchange of tax information. SAF-T reporting allows for easier communication of transactions performed to tax authorities, making it simpler to carry out tax audit procedures.
SAF-T was developed by the Organisation for Economic Cooperation and Development (“OECD”) in 2005. Over ten European countries have already adopted the S-AFT as a standard for tax authorities and taxpayers to exchange information more efficiently.
Hungary is now following in the footsteps of Portugal, Norway, and Poland by introducing the reporting of accounting data in accordance with the international SAF-T standard.
The SAF-T is expected to be mandatory in Hungary in the short term, and although the exact date is yet to be confirmed unofficial information indicates that SAF-T will be mandatory by the end of 2022, or the beginning of 2023.
Pilot Programme
A pilot programme has already been conducted by Hungary’s National Tax and Customs Administration (“NAV”) amongst some large companies and technology providers to test the functionality of the new format, following a public consultation at the start of 2021.
Hungarian SAF-T
The three sections of the Hungarian SAF-T are:
i) master data – general information about suppliers, customers, products, etc.,
ii) transactional data – detailed information about transactions, and
iii) reporting data section – information concerning reporting obligations.
Hungarian real-time reporting obligation already requires businesses to have their systems ready to send standard audit files (SAF) when required by the tax authority. This information will include (i) general accounting, customers, suppliers and VAT, (ii) accounts receivable and (iii) accounts payable data.
The idea is that Hungarian SAF-T will be submitted to NAV in XML format, however, the required information / format is yet to be confirmed.
Need assistance with your Hungarian VAT compliance?
It is important for companies to ensure that their processes and systems will be able to meet these new requirements.
The SAF-T will provide the tax authorities with access to more reliable accounting data and will help firms ensure harmonised tax transactional reporting.
Managing your business tax affairs can be challenging, and gaining greater insight into Hungarian VAT legislation is the first step towards meeting your VAT compliance needs.
Apex Group has a global range of tax and VAT solutions and can help to ensure that your business is in the most efficient position.
For more information contact us.
