Hungary: update for the NAV Online Invoicing System – RTDS2

Communication changes with the National Tax and Customs Administration

From 1st July 2020, companies located in Hungary will have to comply with the new online invoicing system – RTDS2. The principle is that taxpayers residing in Hungary must send all sales invoices to the “Online Számla” of the NAV (national administration portal), electronically, online, and immediately, without human intervention, in agreement with the technical prerequisite described in the law.

The two main points to remember for this evolution are:

  1. The use of version 2.0 of the online invoice reporting XML will be mandatory for all taxpayers.
  2. All companies must declare their invoices to NAV. The current limit requiring the declaration to only be done for invoices over 100,000 HUF VAT will no longer apply.

So, for Hungarian companies, the stakes are colossal.

  • They involve total changes in communication with the tax administration for sales invoices,
  • They involve XML technology (eXtensible Markup Language),
  • They put the web service at the heart of the process, a computer interface protocol for the family of web technologies allowing communication and data exchange between heterogeneous applications and systems in distributed environments.
Hungary modifications of the RITR system

Challenges for Hungarian companies, but not only …

Significant developments for companies but also major investments for DEVEHO. Find below the full story of our team. Return of Tomas B., finance consultant at DEVEHO and Laurent S., technical consultant/developer at DEVEHO.

What were the most important challenges? How was it complicated to set up?

TB:Hungarian online invoicing is a big challenge because VAT and fiscal laws in Hungary are very complex.

With the new e-invoicing feature, a lot of companies in Hungary have had to adjust some internal procedures in favour of accountants. This brought up a lot of questions and a solution managed by DEVEHO Consulting Group. As development leader and Hungarian law specialist, I had to find the balance between the nice-to-have and mandatory elements to be done throughout international cooperation with the proper understating of the technical workload impact.

LS:From my point of view, two things were particularly complicated to manage. The first concerns communication with the servers of the Hungarian central administration. I turned to external developments to develop a Python program. The second point concerns the lack of information. I had at my disposal an XML file indicating the mandatory fields, the optional fields but without any rules. Therefore, we developed this evolution in agile mode. Many tests had to be carried out. In total, this work took almost 3 weeks.

For Hungarians, this implies many changes. The law imposes under penalty of fine the declaration of the invoices the same day, as when they are created. In X3, when you create your invoice, you can then modify and stabilize it when it is validated in accounting. For our part, we decided to send it only when it is validated in accounting. Thus, it is advisable to create and send the invoice the same day.”

How did you organize yourself?

TB:ERP is my passion. Managing such a complex feature made me motivated.

LS:In terms of organisation, I worked in a pair with our functional consultant: him for the functional part, myself for the development part. I had at my disposal the specifications and Hungarian documentation translated into English. With that, I was able to be independent. Eventually, I asked a few questions and then passsed the baton to Tomas, who was able to give me his feedback.”

Today, it is official! DEVEHO Hungarian localisation pack is compliant with RTDS-2. Available in Sage X3 V12, we are ready to support you in these major developments. In DEVEHO “Addon”, an interface linked to the NAV portal has been created to communicate with the Hungarian state.

Do you need more information?

Contact us.