Tracking Income and Expenses in Hungary – Accountancy quick guide
Last updated on 3 July 2020.
When you own a Hungarian company, it is crucial that you keep good track of your income and expenses. The regulations are quite strict, and if you fail to comply, you may expect extensive fines. However, you do not have to worry: your accountant or bookkeeper will help you with this. You only have to follow a few simple rules.
Income
Invoices to buyers/clients can only be issued through a licensed invoicing software (recommended) or an official “invoice booklet” (not very convenient). Invoices issued in Excel, foreign invoicing programs or other means are not acceptable in Hungary. We strongly recommend that you purchase a license for the invoicing software (license fee: approx. EUR 140/year) and learn to use this program with our assistance. This way, you’ll be able to issue invoices in Hungarian and English, in full compliance with the local regulations, and even in PDF format if you wish.
UPDATE: As of 1 July 2020, all Hungarian B2B invoices must be immediately reported to the Tax Authority, for which using an invoicing software is an ideal solution. Learn more about the changes here.
Expenses
Regarding your expenses: when you buy a product or service, you always have to ask for an invoice which contains the full name and address, together with the tax number of both the seller’s and your company, otherwise the purchase will not be deductible from your taxes. We understand that in many countries simple receipts that you get at the shop are deductible as business expenses but this is not the case in Hungary. You must ask for such an invoice when buying computers, flight tickets, hotel rooms, services from providers, goods from your suppliers, or anything else that is a business cost.
Transactions (any income and expenses)
Cash transactions are severely limited in Hungary, and while the precise regulations change periodically, the basic principle is that there are limitations on the permissible ceiling for single cash transactions, HUF 1,500,000. If your business deals a lot in cash, please discuss this with us and/or your accountant in advance.
You may find more information in our brochure here. Should you need assistance in English language accountancy or bookkeeping, you may always visit our accountancy service page. Also, please do not hesitate to contact us through the form below, or call our office on +36.1.317.8570. We will be happy to help!
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