The rules and regulations on issuing an invoice set by the Hungarian Tax Office are stricter than in many European countries. Keeping the following points in mind, you’ll be able to easily conform to the regulations and avoid Tax Office fines.
First, you need the basic data of the buyer: their official company name, their registered company address (which might be different from their office or postal address) and their tax number or EU VAT number. The invoice has to contain the basic data of both the seller (your company) and the buyer.
Hungarian companies receive an EU VAT number automatically, and if your buyer also has a valid, non-Hungarian VAT number, you can issue an invoice without charging VAT. As a seller, it is your responsibility to check the validity of your buyer’s EU VAT number, which you can easily do here: http://ec.europa.eu/taxation_customs/vies/ .
Next, provide a description and price of the items you are selling. These can be goods (e. g., mobile phones, clothes, household items) or services (e. g., financial consulting, graphic design or software development). Always indicate the unit by which you measure the product (e. g., an hour of graphic design or 1 kg of tea), the net price per unit, as well as the number of units sold. Don’t forget to show the currency in which the invoice is issued (e. g., EUR, USD or HUF). Finally, your invoice should have the net total, the amount of VAT (if any), and the gross total.
A properly issued invoice should contain three dates. First, the issue or billing date is quite simply the date on which the invoice was issued. Second, the due date is the date by which payment for the invoice should be received by the seller. Finally, the delivery date is the date by which the goods are delivered or the provided services are completed. According to Hungarian regulations, the invoice must be issued within 2 weeks of the delivery date.
Last, your invoice should also contain the bank account number to which the payment should be sent. When sending the invoice to your buyer, you might want to attach some supporting documents, such as shipping documents for goods or proof of completion for services. In some cases, you’ll also need to have a written contract to accompany your invoice – make sure to check with your accountant regarding your particular situation.
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