Key takeaways
- Digital transition: From July 2024, Hungary will introduce electronic registers (e-registers) to issue digital receipts through a NAV-linked system.
- Greater efficiency & transparency: The e-register system will improve real-time tax data visibility, reduce paper use, and enhance compliance.
- Privacy protection: Strict data safeguards will prevent customer profiling, ensuring receipt data remains confidential and consent-based.
This year, Hungary will be significantly overhauling its cash register system. Starting in July 2024, the implementation of electronic registers (e-registers) will enable the issuance of digital receipts, accessible to consumers via a specialized app. This digital shift aims to streamline transactions and enhance consumer convenience.
The e-register (ePG) system signifies a departure from traditional, physical cash registers, and a move towards a software or cloud-based solution directly linked with the National Tax and Customs Administration (NAV). This system will automatically issue electronic receipts, with paper receipts provided only upon customer request, marking a significant shift towards minimizing paper usage.
The process for obtaining e-receipts involves the consumer displaying a QR code in the app, which is scanned at checkout. Subsequently, the receipt is stored in NAV's receipt repository, from where it can be downloaded. By 2028, it is expected that all merchants will have the capability to issue e-receipts.
The new system will expand the mandatory information required on receipts and will align the issuance of adjustment vouchers with that of invoices. This digital approach is particularly advantageous for businesses seeking to integrate their receipting processes with their business management systems or develop bespoke applications.
With the advent of the e-register and e-receipt systems, the visibility of transactions to the tax authority will significantly improve, bridging the current data gap and bringing previously unmonitored sectors into compliance. This real-time data accessibility aims to enhance tax compliance and transparency.
Data protection will be a priority, with safeguards in place to prevent customer profiling based on transaction data, ensuring that customer information remains confidential and accessible only with explicit consent.
The procedural regulations are set to take effect from July 1, 2024, and those specific to e-receipts from January 1, 2025. The scope of mandatory adoption and the conditions for transitioning from the current system are yet to be clarified.
Businesses are encouraged to familiarize themselves with the new system and prepare for its implementation, despite the current uncertainties surrounding its application and requirements.
Frequently asked questions
What is Hungary’s e-register (ePG) system?
The e-register is a new digital cash register system linked to the National Tax and Customs Administration (NAV). It replaces traditional registers and issues electronic receipts stored in NAV’s central repository.
When will e-registers and e-receipts be introduced?
Procedural regulations take effect on July 1, 2024, while e-receipt rules will apply from January 1, 2025. Full merchant capability is expected by 2028.
How will consumers receive e-receipts?
Customers will use a mobile app to generate a QR code, scanned at checkout. The digital receipt is then stored securely in NAV’s repository and can be downloaded by the consumer.
