Invoicing basics for Hungarian small businesses, with official sources
Hungarian invoicing rests on four basics: VAT, the small-business exemption, NAV Online Számla, and the difference between the documents (proforma, advance invoice, storno). This article explains each, names the official source for every rule, and is not tax advice: check your case with your accountant.
Published: · Updated: · By the HelloCRM team
What is the VAT rate, and when is it different?
Under section 82 of the VAT Act the standard rate is 27 percent; goods and services listed in the Act's annexes carry 18 or 5 percent. Some transactions are exempt.
Which rate applies to a given item is always a question for your accountant. In invoicing software the rate is set per line, so one invoice can carry several rates. In HelloCRM the VAT rate is your company's own default, it can be changed per line, and a 0 percent line asks for an exemption reason.
What is the small-business VAT exemption?
The small-business exemption is an optional VAT exemption for small businesses whose revenue stays below a legal limit. According to NAV, the revenue limit for choosing the exemption is HUF 20 million from 2026, 22 million from 2027 and 24 million from 2028.
An exempt business charges no VAT and cannot deduct the VAT on its purchases either. NAV's site describes the conditions and how to elect it; work the numbers with an accountant before deciding.
What does NAV Online Számla mean in practice?
Details
Since 1 January 2021, as a rule, the data of every invoice issued in Hungary must be reported to NAV's Online Számla system, including invoices to private individuals (without the buyer's personal data). The invoicing software does the reporting when the invoice is issued.
The practical consequence is simple: use invoicing software that does the reporting, rather than sending invoices written by hand or edited in a spreadsheet. Exceptions, deadlines and penalties are set out on the NAV Online Számla site and in the VAT Act.
What is the difference between a proforma, an advance invoice and a storno?
Details
- A proforma is a request for payment, not an invoice; it is not reported.
- If an advance arrives, the VAT Act requires VAT and an invoice (an advance invoice) for the advance too. The final invoice covers the full amount and deducts the advance already invoiced.
- An issued invoice cannot be rewritten: it is cancelled (storno) or corrected. A storno is also reported to NAV.
- A delivery note records what you handed over and to whom; it is not an invoice and carries no VAT due.
Suppose a carpenter in Kecskemét builds a fitted kitchen and asks for an advance. First they send a proforma, which only asks for payment. When the advance arrives, they issue an advance invoice for it. On handover they issue a final invoice for the full amount, deducting the advance already invoiced. They check the exact handling with their accountant.
How does a CRM help with invoicing?
Details
A CRM works with the same lines from quote to invoice and leaves issuing to invoicing software that reports to NAV. HelloCRM uses Számlázz.hu and Billingo, from your own account; they set their own fees. HelloCRM does not report to NAV itself.
- A draft is not issued as is, and the same invoice cannot be issued twice.
- An issued invoice cannot be edited, only reversed or corrected.
- Proformas are never sent for reporting.
- Without access details the system runs as a dry run, and says so.
- The issued invoice's PDF is kept in HelloCRM too.
Because the quote and the invoice use the same calculation, rounded per line, the buyer sees the same total on both. This is general information; check the rules for your business with your accountant.
Where to read on
Questions
Is a proforma an invoice?
No: a proforma is a request for payment, so it is not reported to NAV. If an advance is paid on it, an advance invoice is needed.
Does HelloCRM report to NAV itself?
No: Számlázz.hu or Billingo reports from your own account, and the invoice is kept there too.
Sources
This is general information, not legal or tax advice. The rules come from: 2007. évi CXXVII. törvény az általános forgalmi adóról (Áfa tv.), Nemzeti Jogszabálytár (checked ); NAV: Emelkedik az alanyi adómentesség értékhatára (checked ); NAV Online Számla (checked )