A properly issued invoice is essential for keeping your company compliant. Without it, you might be faced with being charged extra hours for accountancy, tax audits and even fines.
In many countries, invoices can be issued by Word or Excel. However, Hungarian companies must either use an official invoice booklet or an invoicing software licensed by the Hungarian Tax Office. Let’s look at the pros and cons of using an invoice booklet.
First and foremost, and invoicing booklet is easy to get. You can walk into any stationary shop and buy it. It is also very cheap, as it only costs a few Euros.
Thus, it might be the perfect option in the first few months of the company’s operation, when only a few invoices per month are issued.
However, since the booklets are available in Hungarian only, you have to learn how to correctly fill them out, and what to write in each little cell. Moreover, the total payable has to be written out in letters, not just with numbers, which requires the owner to perfect their Hungarian a bit sooner than they might be ready to.
Another disadvantage is always having to carry around paper copies. All invoices are issued in triplicate. The original (with the green grid) is sent to the buyer. The first carbon copy (with the red grid) must be given to the accountant. Finally, the second carbon copy (with the black grid) is to remain with the business owner. In the digital age, having to take care of more bits of paper than strictly necessary can quickly become cumbersome.
Finally, the real disadvantage will show once your business picks up and you’ll need to issue several tens or even hundreds of invoices a month. At this stage, all the work hours you’ll have to spend on this will likely come out more expensive than investing in an invoicing software.
Part of the economic relief measures in Hungary due to the coronavirus pandemic, some payroll taxes are reduced to help retain employees and heighten job security. The structure of fringe benefits and healthcare contributions also changes.Read More