Hungary’s comprehensive online invoicing system has been operating seamlessly since its introduction in July 2018 and has contributed to a HUF 403bn jump (€1.3bn) in VAT revenue year on year, said the Finance Minister Mihaly Varga.
Varga noted that millions of electronic invoices contained a huge amount of data, an analysis of which enabled law-abiding taxpayers to be distinguished from non-compliant businesses.
Online invoicing helps targeted and swift action against fraud, he said. It provides the tax authority NAV a large amount of data in real time, which helps to uncover fraudulent activity and is a deterrent in itself, he said. Its implementation alone prompted certain companies to invoice according to their actual income, he said.
