Hungary's tax authorities have unveiled a sweeping roadmap for implementing the EU's ViDA directive, mandating e-invoicing across domestic and cross-border transactions while introducing a dual-reporting mechanism and EN 16931 compliance standards — as the country moves to phase out paper invoices and email-based distribution by adopting a five-corner transmission model.
Hungary’s National Tax and Customs Administration (NTCA) and Ministry of National Economy (NGM) have published a roadmap for implementing the EU’s ViDA directive. The plan outlines major changes to Hungary’s e-invoicing system.
Core requirements and technical standards
Mandatory e-invoicing: The implementation will mandate e-invoicing for all domestic and cross-border transactions, covering both accounts receivable and accounts payable. The e-invoicing mandate will apply to three main transaction types: domestic business-to-business (B2B) dealings, cross-border intra-EU B2B transactions, and business-to-government (B2G) operations.
Different deadlines will govern invoice issuance depending on the transaction type. For intra-Community dealings, businesses must issue invoices within 10 days of completing the transaction. Domestic transactions will maintain the existing eight-day deadline.
Traditional paper invoices will be restricted to two scenarios: transactions with private consumers and sales to non-EU customers. Nevertheless, parties retain the option to use electronic invoices voluntarily in these situations as well.
Accounts on Receipt (AOR): A notable addition is the Accounts on Receipt (AOR) requirement, which compels buyers to report invoice-related supply data to tax authorities within five days of receipt. This dual-reporting mechanism enables the tax authority to cross-verify information from both transaction parties.
Adherence to EN 16931 EU standard: All invoices must adhere to the EN 16931 EU standard format to ensure cross-border interoperability, though Hungary will introduce certain local adaptations. Invoice transmission will require automated processing capabilities with proper encryption and security measures—effectively ending email-based distribution. Suppliers must verify buyer tax numbers before transmission to prevent invalid submissions. Businesses have traditionally preferred PDF invoices, often as electronic copies of paper versions. Under the new rules, a human-readable invoice image will generally be optional, but it will remain mandatory for invoices issued to private individuals.
PEPPOL network: Hungary will make PEPPOL network usage optional rather than mandatory, while establishing a Hungarian PEPPOL authority and providing a free public invoicing solution. Service providers offering ViDA-compliant e-invoicing must obtain official accreditation through a self-service verification process that confirms their systems can generate compliant invoices, accurately extract XML data, and prevent incorrect submissions.
5-corner model: Hungary will adopt a five-corner model where taxable sellers transmit invoices to the tax authority through invoicing software or service providers, while buyers receive them via their accounting systems or service providers. Importantly, using invoicing service providers remains optional—businesses can continue issuing and receiving invoices directly through their own software. The tax authority plans to introduce additional support services to ease the transition and reduce administrative burdens.
Earlier, the EU’s VAT in the Digital Age (ViDA) Package, introduced by Council Directive (EU) 2025/516, took effect on 14 April 2025, 20 days after its publication in the Official Journal. Originally proposed by the European Commission in December 2022, the package was approved by the European Parliament in February 2025 and formally adopted in March 2025.
