VAT declaration (Hungary)

This article describes how to set up the value-added tax (VAT) declaration 65A with Summary report 65M for Hungary in XML format, and how to preview the VAT declaration 65A in Microsoft Excel.

To automatically generate the reports, first create enough sales tax codes to keep a separate VAT accounting for each box on the VAT declaration. Additionally, in the application-specific parameters of the Electronic reporting (ER) format for the VAT declaration, associate sales tax codes with the lookup result of the lookups for the boxes on the VAT declaration.

For Hungary, you must configure the following elements:

• Report field lookup
• Details lookup
• Annex I lookup
• Assets lookup
• In-kind operations lookup

For more information about how to set up application-specific parameters, see the Set up application-specific parameters for VAT declaration fields section later in this topic.

In the following table, the "Lookup result" column shows the lookup result that is preconfigured for a specific VAT declaration row in the VAT declaration format. Use this information to correctly associate sales tax codes with the lookup result and then with the row of the VAT declaration.

VAT declaration overview

The VAT declaration 65A in Hungary contains the following sections:

• 65A-01-01
• 65A-01-02
• 65A-01-03
• 65A-01-05

Section 65A-01-01

Use the following tables to determine how a lookup result that is preconfigured in the format is associated with a VAT declaration box.

VAT payable

 

Description	Line	Lookup	Lookup result
Supply of goods outside the territory of the Community, supply of services covered by it and supply of goods and services in connection with international transport	01	Report field lookup	01-Export
Intra-Community tax-free supplies of goods with the right to deduct (excluding sales of new means of transport)	02	Report field lookup	02-EUSales
Amount of intra-community sales of a new means of transport	03	Report field lookup	03-EUSalesNewMeansOfTransport
Supply of goods, the provision of services pursuant to § 142 and tax-free domestic sales	04	Report field lookup	04-TaxFreeDomesticSales
Sales at a rate of 5% - reduced rate	05	Report field lookup	05-DomesticSalesLowerReducedRate
Sales at a rate of 18% - reduced rate	06	Report field lookup	06-DomesticSalesHigherReducedRate
Sales at a rate of 27% - standard rate	07	Report field lookup	07-DomesticSalesStandardRate
Tax-free sales due to their public interest or other special nature	08	Report field lookup	08-TaxFreeSpecialSales
Tax established by a special procedure	09	Report field lookup	09-TaxSpecialProcedure
Tax on investment within one's own business	10	Report field lookup	10-InvestmentOwnBusinessTaxPayable
Tax-free Intra - Community acquisitions of goods	11	Report field lookup	11-EUPurchasesTaxFree

 

Description	Line	Lookup	Lookup result
Intra - Community acquisitions of products subject to a 5% rate	12	Report field lookup	12-EUPurchasesLowerReducedRateTaxPayable 1269-EUPurchasesLowerReducedRateUseTax
Intra - Community acquisitions of products subject to a 18% rate	13	Report field lookup	13-EUPurchasesHigherReducedRateTaxPayable 1369-EUPurchasesHigherReducedRateUseTax
Intra - Community acquisitions of products subject to a 27% rate	14	Report field lookup	14-EUPurchasesStandardRateTaxPayable 1469-EUPurchasesStandardRateUseTax
Acquisition of a new means of transport within the Community (27% tax rate)	15	Report field lookup	15-EUPurchasesNewMeansOfTransportTaxPayable 1569-EUPurchasesNewMeansOfTransportUseTax
Intra - Community acquisitions of excise goods (27% tax rate)	16	Report field lookup	16-EUPurchasesExciseGoodsTaxPayable 1669-EUPurchasesExciseGoodsUseTax
Use of a tax-free service (from a Community taxable person and another country/region taxable person)	17	Report field lookup	17-PurchaseServicesTaxFree
The obligation to pay tax on a service used from a Community taxable person is subject to VAT Act. Pursuant to Section 37 (1) (tax rate of 27%)	18	Report field lookup	18-EUPurchaseServicesTaxPayable 1867-EUPurchaseServicesUseTax
Other tax liability on services received from a Community taxable person	19	Report field lookup	19-EUPurchaseServicesOtherTaxPayable 1967-EUPurchaseServicesOtherUseTax
5% tax payable by the purchaser on the supply of goods in the case of a transaction within the community under VAT Act. Section 91 (2)	20	Report field lookup	20-EUPurchasesTriangularLowerReducedRateTaxPayable 2069-EUPurchasesTriangularLowerReducedRateUseTax
18% tax payable by the purchaser on the supply of goods in the case of a transaction within the community under VAT Act. Section 91 (2)	21	Report field lookup	21-EUPurchasesTriangularHigherReducedRateTaxPayable 2169-EUPurchasesTriangularHigherReducedRateUseTax
27% tax payable by the purchaser on the supply of goods in the case of a transaction within the community under VAT Act. Section 91 (2)	22	Report field lookup	22-EUPurchasesTriangularStandardRateTaxPayable 2269-EUPurchasesTriangularStandardRateUseTax

 

Description	Line	Lookup	Lookup result
Tax - free import of goods	23	Report field lookup	23-ImportGoodsTaxFree
Import of goods taxed at 5%	24	Report field lookup	24-ImportGoodsLowerReducedRateTaxPayable 2471-ImportGoodsLowerReducedRateUseTax
Import of goods taxed at 18%	25	Report field lookup	25-ImportGoodsHigherReducedRateTaxPayable 2571-ImportGoodsHigherReducedRateUseTax
Import of goods taxed at 27%	26	Report field lookup	26-ImportGoodsStandardRateTaxPayable 2671-ImportGoodsStandardRateUseTax
Obligation to pay tax on a service provided by a taxable person in a non - Community country/region	27	Report field lookup	27-PurchasesServiceThirdCountryTaxPayable 2767-PurchasesServiceThirdCountryUseTax
Purchase of goods pursuant to VAT Act § 32, § 34 (27% tax rate)	28	Report field lookup	28-DomesticAssemblyElectricityTaxPayable 2867-DomesticAssemblyElectricityUseTax
Tax payable under the rules of reverse charge pursuant to VAT Act § 142	29	Report field lookup	29-PurchaseReverseChargeTaxPayable 2966-PurchaseReverseChargeUseTax
Item reducing the tax payable pursuant to VAT Act Section 99 (9)	30	Report field lookup	30-TaxReimbursedForeignPassenger
Total tax increase item pursuant to VAT Act 153 / C. §	31	Report field lookup	31-TaxIncrease
Other	35	Report field lookup	35-OtherTaxPayable
Total (lines 01 - 35)	36	Not applicable	Total of lines 01 through 35

Section 65A-01-02

Use the following tables to determine how a lookup result that is preconfigured in the format is associated with a VAT declaration box.

Details of VAT payable

Description	Line	Lookup	Lookup result
The value of the export of goods from line 01 according to VAT Act § 98	37	Details	37-Export98
The value of goods placed in a tax warehouse and resold there or unloaded there	38	Details	38-TaxWarehouseTaxableSales
Value of goods from tax-free Community acquisitions placed in a tax warehouse from the amount of line 11	39	Details	39-TaxWarehouseTaxFreeSales
The amount of supplies of goods which are the subject of domestic assembly or assembly on the basis of a Community mandate from rows 05-07	40	Details	40-SalesDomesticAssembly
The amount of distance selling from rows 05-07	41	Details	41-DistanceSelling
Amount of purchases of goods to be assembled or assembled domestically on the basis of a Community mandate from line 28	42	Details	42-PurchasesDomesticAssembly
Sales of property, plant and equipment from line 36 (excluding in-kind sales)	43	Assets	43-SalesPropertyPlantEquipment
In-kind sales from line 36	44	InKind	44-InKindSales
The amount received as an advance payment from the sum of the rows 05-07	45	Details	45-AdvancesDomesticTaxableSales
Amount received as an advance from the sum of lines 01 and 04	46	Details	46-AdvancesTaxFreeSalesExport
Intra-Community sales of new means of transport to non-taxable persons from line 03	47	Details	47-EUSalesNewMeansOfTransportNonTaxablePerson
Excise tax content in the tax base of lines 11, 16	48	Details	48-EUPurchasesExcise
Tax payable on the provision of travel services from line 09	49	Details	49-SpecialProcedureTravelServices
Tax from the amount of line 09 under VAT Act Chapter XVI	50	Details	50-SpecialProcedureXVI
The tax payable on the property under the rules of reverse charge in the amount of line 29	51	Details	51-ReverseChargePropertyTaxPayable
The tax payable on waste under the rules of reverse in the amount of line 29	52	Details	52-ReverseChargeWasteTaxPayable
The tax payable in case of transfer of a property right entitling to emit a greenhouse gas under the rules of reverse charge taxation from the amount of line 29	53	Details	53-ReverseChargeGreenhouseGasTaxPayable
The tax payable in case of using the service according to the rules of reverse charge taxation specified in § 142 of VAT Act from the amount of line 29	54	Details	54-ReverseChargeService142TaxPayable
The tax payable in case of using the service according to the rules of reverse charge taxation specified in § 142 of VAT Act from the amount of line 29	55	Details	55-TaxGuaranteeTaxWarehousing
Sales subject to tax guarantees on intra-Community sales made by the importer in connection with tax-free imports of products from line 02	56	Details	56-EUSalesTaxGuarantees
Amount of tax-free intra-Community sales made by the importer / taxable person but declared by the indirect customs representative / tax warehouse operator from line 02	57	Details	57-EUSalesDeclaredByRepresentative
Amount of tax-free sales of a new means of transport within the Community made by the importer / taxable person but declared by the indirect customs representative / tax warehouse operator from line 03	58	Details	58-EUSalesNewMeansOfTransportDeclaredByRepresentative
Amount of tax-free imports from line 23 made by the importer but declared by the indirect customs representative in the framework of self-taxation	59	Details	59-ImportGoodsTaxFreeDeclaredByRepresentative
Amount of imports of the goods taxed at 5% made by the importer but declared by the indirect customs representative in the framework of self-taxation from line 24	60	Details	60-ImportGoodsLowerReducedRateDeclaredByRepresentative
Amount of imports of the goods taxed at 18% made by the importer but declared by the indirect customs representative in the framework of self-taxation from line 25	61	Details	61-ImportGoodsHigherReducedRateDeclaredByRepresentative
Amount of imports of the goods taxed at 27% made by the importer but declared by the indirect customs representative in the framework of self-taxation from line 26	62	Details	62-ImportGoodsStandardRateDeclaredByRepresentative

Deductible input tax on purchases

Description	Line	Lookup	Lookup result
Domestic purchase of tax - free goods	63	Report field lookup	63-TaxFreeDomesticPurchases
Purchase of goods and services under the 5% rate	64	Report field lookup	64-PurchasesLowerReducedRate
Purchase of goods and services under the 18% rate	65	Report field lookup	65-PurchasesHigherReducedRate
Purchase of goods and services under the 27% rate	66	Report field lookup	66-PurchasesStandardRate 2966-PurchaseReverseChargeUseTax
Amount tax deductible from tax paid on a service provided by a taxable person in a non-member country/region or in the Community or as a purchaser of a product in their own name	67	Report field lookup	67-PurchasesServicesTaxDeductible 1867-EUPurchaseServicesUseTax 1967-EUPurchaseServicesOtherUseTax 2767-PurchasesServiceThirdCountryUseTax 2867-DomesticAssemblyElectricityUseTax
Taxable amount deductible (Original tax base, proportional tax)	68	Report field lookup	68-PurchasesProrataTaxDeductible
Amount of tax deductible on intra - Community acquisitions of goods	69	Report field lookup	69-EUPurchasesTaxDeductible 1269-EUPurchasesLowerReducedRateUseTax 1369-EUPurchasesHigherReducedRateUseTax 1469-EUPurchasesStandardRateUseTax 1569-EUPurchasesNewMeansOfTransportUseTax 1669-EUPurchasesExciseGoodsUseTax 2069-EUPurchasesTriangularLowerReducedRateUseTax 2169-EUPurchasesTriangularHigherReducedRateUseTax 2269-EUPurchasesTriangularStandardRateUseTax
Deductible part of the tax paid on an imported product (by imposition)	70	Report field lookup	70-ImportGoodsTaxDeductible 70-ImportGoodsProRataTaxDeductible
Deductible part of tax paid on imported product (with self - taxation)	71	Report field lookup	71-ImportGoodsSelfTaxationTaxDeductible 71-ImportGoodsProRataSelfTaxationTaxDeductible 2471-ImportGoodsLowerReducedRateUseTax 2571-ImportGoodsHigherReducedRateUseTax 2671-ImportGoodsStandardRateUseTax

Section 65A-01-03

Use the following tables to determine how a lookup result that is preconfigured in the format is associated with a VAT declaration box.

Deductible input tax on purchases

Description	Line	Lookup	Lookup result
7% agricultural compensation surcharge	72	Report field lookup	72-AgriculturalCompensationSurchargeLowerRate
12% agricultural compensation surcharge	73	Report field lookup	73-AgriculturalCompensationSurchargeHigherRate
After investing within your own business	74	Report field lookup	74-InvestmentsOwnBusiness
Other	75	Report field lookup	75-OtherTaxDeductible
Total (sum of lines 63-75)	76	Not applicable	Total of lines 63 through 75
Amount of tax deductible on the acquisition of a tangible asset from the amount of line 76 (excluding in-kind purchases)	77	Assets	77-PurchasesTangibleAssets
The amount of tax deductible on in-kind purchases from line 76	78	In-Kind	78-InKindPurchases
The amount of the unrealized investment in one's own enterprise from the amount of line 76	79	Details	79-UnrelizedInvestmentsOwnBusiness

 

Value added tax accounting

Description	Line	Data source type	Data source
Amount of deductible item moved from previous period (from the line "Amount of receivable carried forward" of the previous period's declaration)	82	User input parameter	Tax base - Deductible amount moved from previous period Tax amount - Deductible amount moved from previous period
The difference between the total amount of tax payable during the reference period and the deductible input tax (line 36 - line 76 - line 82)	83	Not applicable	The result of the following formula: Line 36 – line 76 – line 82
Amount of tax to be paid (if amount in line 83 is positive)	84	Not applicable	The result of the following formula: Line 83, if line 83 > 0; otherwise, 0
Amount of recoverable tax (if amount in line 83 is negative and you are entitled to a refund)	85	Not applicable	The result of the following formula: 0 – line 83, if 83 < 0; otherwise, 0
Amount of receivable carried forward	86	User input parameter	Tax base – Receivable amount carried forward Tax amount – Receivable amount carried forward

 

Details of the return

Description	Line	Lookup	Lookup result
The value, exclusive of tax, of goods acquired for resale in the form of an intermediate customer in a "triangular transaction" (Intra-Community )	88	Details	88-PurchasesGoodsTriangularB
The value, exclusive tax, of goods resold as an intermediate customer in a "triangular transaction" (Intra-Community)	89	Details	89-SalesGoodsTriangularB
Tax-free value of supplies of goods effected outside its territorial scope	90	Details	90-TaxFreeSalesGoodsOutsideTerritorialScope 9094-TaxFreeSalesGoodsAssembledOutsideTerritorialScope 9095-EUDistanceSales
Tax-free value of the supply of services outside its territorial scope	91	Details	91-TaxFreeSalesServicesOutsideTerritorialScope 9192-TaxFreeSalesServicesOutsideTerritorialScope 9193-TaxFreeSalesServicesOutsideTerritorialScope
Tax-free value for the supply of services falling under Section 37 (1) from the amount of line 91	92	Details	9192-TaxFreeSalesServicesOutsideTerritorialScope
Tax-free value for the supply of services other than Section 37 (1) from the amount of line 91	93	Details	9193-TaxFreeSalesServicesOutsideTerritorialScope
The tax-free value of goods which are considered to have been assembled or assembled in another Member State of the Community from line 90	94	Details	9094-TaxFreeSalesGoodsAssembledOutsideTerritorialScope
Remuneration, net of tax, of distance sales effected in another Member State of the Community from line 90	95	Details	9095-EUDistanceSales

 

Section 65A-01-05

Use the following tables to determine how a lookup result that is preconfigured in the format is associated with a VAT declaration box.

Sale / purchase of products listed in Annex I to Regulation (EC)

Description	Line	Lookup	Lookup result
Agricultural products - The tax base of products sold under reverse charge from the amount of line 04	100B	AnnexI	100B-DomesticSalesRCAgriculturalProducts
Agricultural products - Tax base and tax for goods acquired under reverse charge from the amount of line 29	100D	AnnexI	101B-PurchaseReverseChargeAgriculturalProductsTaxDue
Iron and steel products - The tax base of products sold under reverse charge from the amount of line 04	101B	AnnexI	100D-DomesticSalesRCIronSteel
Iron and steel products - Tax base and tax for goods acquired under reverse charge from the amount of line 29	101D	AnnexI	101D-PurchaseReverseChargeIronSteelTaxDue

 

Purchase reverse charge VAT

If you configure sales tax codes to post incoming reverse charge VAT by using use tax, associate your sales tax codes with the lookup result of Report field lookup that contains "UseTax" in the name.

Alternatively, you can configure two separate sales tax codes: one for VAT due and one for VAT deduction. Then associate each code with the corresponding lookup results of Report field lookup.

For example, for taxable intra-community acquisitions, you configure sales tax code UT_S_EU with use tax and associate it with the 1469-EUPurchasesStandardRateUseTax lookup result of Report field lookup. In this case, transactions that use the UT_S_EU sales tax code are reflected on lines 14 ("Intra - Community acquisitions of products subject to a 27% rate") and 69 ("Amount of tax deductible on intra - Community acquisitions of goods").

Alternatively, you configure two sales tax codes:

• VAT_S_EU, which has a tax rate value of -27 percent

• InVAT_S_EU, which has a tax rate value of 27 percent

You then associate the codes with lookup results of Report field lookup in the following way:

• Associate VAT_S_EU with the 14-EUPurchasesStandardRateTaxPayable lookup result.

• Associate InVAT_S_EU with the 69-EUPurchasesTaxDeductible lookup result.

In this case, amounts that use the VAT_S_EU sales tax code are reflected on line 14 ("Intra - Community acquisitions of products subject to a 27% rate"). Amounts that use the InVAT_S_EU sales tax code are reflected on line 69 ("Amount of tax deductible on intra - Community acquisitions of goods").

For more information about how to configure reverse charge VAT, see Reverse charges.

Summary report overview

In Hungary, you can generate a report 65M that contains the following information for each vendor:

• The number of purchase invoices, and their total tax base and tax amount
• The number of corrective invoices, and their total tax base and tax amount
• The list of all purchase invoices in section 65M-02, regardless of the threshold
• The list of corrective invoices in section 65M-02-K, regardless of the threshold

A list of purchase invoices 65M-02 lists all the purchase invoices for the period. For each invoice, it contains the following information:

• The invoice number.
• The fulfillment date. The fulfillment date is the date when the goods are sold or the services are performed. If an invoice doesn't have a fulfillment date, the invoice date is used.
• The tax base in 1,000 Hungarian forints (HUF).
• The tax amount in 1,000 HUF.
• The marking of the final invoice that is received after receipt of the advance invoice.

A list of corrective invoices 65M-02-K lists all the corrective invoices. For each corrective invoice and its original invoice, it contains the following information:

• The invoice or corrective invoice number
• The line type "E" for original invoice or "KT" for corrective invoice
• The original invoice number for the line for a corrective invoice
• The original invoice fulfillment date for the line for a corrective invoice
• The invoice or corrective invoice fulfillment date
• The tax base in 1,000 HUF
• The tax amount in 1,000 HUF

The following are examples show how report 65M is filled in.

Example 1: Corrective invoice

• August 1, 2022 (01.08.2022): Purchase invoice Inv1 for a 1,000,000 HUF tax base and a 270,000 HUF tax amount.
• August 20, 2022 (20.08.2022): Corrective invoice CN1 for a -100,000 HUF tax base and a -27,000 HUF tax amount.

Report for August 2022

65M-02

Invoice number (a)	Fulfillment date (b)	Tax base (c)	Tax amount (d)	Difference due to advance invoice marking (e)
Inv1	01.08.2022	1000	270

 

65M-02-K

Invoice number (a)	Type (b)	Original invoice number (c)	Original fulfillment date (d)	Fulfillment date (e)	Tax base (f)	Tax amount (g)
Inv1	E			01.08.2022	1000	270
CN1	KT	Inv1	01.08.2022	20.08.2022	-100	-27

 

Example 2: Corrective invoice to multiple original invoices

• August 2, 2022 (02.08.2022): Purchase invoice Inv2 for a 1,000,000 HUF tax base and a 270,000 HUF tax amount.
• August 3, 2022 (03.08.2022): Purchase invoice Inv3 for a 1,000,000 HUF tax base and a 270,000 HUF tax amount.
• August 22, 2022 (22.08.2022): Corrective invoice CN2 for a -200,000 HUF tax base and a -54,000 HUF tax amount, where -100,000 HUF are correcting Inv2, and -100,000 HUF are correcting Inv3.

Report for August 2022

65M-02

Invoice number (a)	Fulfillment date (b)	Tax base (c)	Tax amount (d)	Difference due to advance invoice marking (e)
Inv1	02.08.2022	1000	270
Inv2	03.08.2022	1000	270

 

65M-02-K

Invoice number (a)	Type (b)	Original invoice number (c)	Original fulfillment date (d)	Fulfillment date (e)	Tax base (f)	Tax amount (g)
Inv2	E			02.08.2022	1000	270
CN2	KT	Inv2	02.08.2022	22.08.2022	-100	-27
Inv3	E			03.08.2022	1000	270
CN2	KT	Inv3	03.08.2022	22.08.2022	-100	-27

 

Example 3: Advance invoice for partial amount

• August 3, 2022 (03.08.2022): Invoice for prepayment Inv4 for a 1,000,000 HUF tax base and a 270,000 HUF tax amount.
• August 23, 2022 (23.08.2022): Final invoice (minus the invoice for the prepayment) Inv 5 for a 2,000,000 HUF tax base (= 3,000,000 – 1,000,000) and a 54 000 HUF tax amount (= 81,000 – 27,000).

65M-02

Invoice number (a)	Fulfillment date (b)	Tax base (c)	Tax amount (d)	Difference due to advance invoice marking (e)
Inv4	03.08.2022	1000	270
Inv5	23.08.2022	2000	540
Inv5	23.08.2022	3000	810	V

 

Example 4: Advance invoice for full amount

• August 4, 2022 (04.08.2022): Invoice for 100-percent prepayment Inv6 for a 1,000,000 HUF tax base and a 270,000 HUF tax amount.
• August 24, 2022 (24.08.2022): Goods are shipped.

65M-02

Invoice number (a)	Fulfillment date (b)	Tax base (c)	Tax amount (d)	Difference due to advance invoice marking (e)
Inv6	04.08.2022	1000	270

 

Configure system parameters

To generate a VAT declaration, you must configure the VAT number.

1. Go to Organization administration > Organizations > Legal entities.
2. Select the legal entity, and then select Registration IDs.
3. Select or create the address in Hungary, and then, on the Registration ID FastTab, select Add.
4. In the Registration type field, select the registration type that is dedicated to Hungary, and that uses the VAT Id registration category.
5. In the Registration number field, enter the tax number.
6. On the General tab, in the Effective field, enter the date when the number becomes effective.

For more information about how to set up registration categories and registration types, see Registration IDs.

Set up a VAT declaration for Hungary

Import ER configurations

• Open the Electronic reporting workspace, and import the following ER formats:

  • VAT declaration XML (HU)
  • VAT declaration Excel (HU)

For more information, see Download ER configurations from the Global repository of Configuration service.

Set up application-specific parameters for VAT declaration fields

Note

We recommend that you enable the Use application specific parameters from previous versions of ER formats feature in the Feature management workspace. When this feature is enabled, parameters that are configured for earlier versions of an ER format automatically become applicable for later versions of the same format. If this feature isn't enabled, you must explicitly configure application-specific parameters for each format version. The Use application specific parameters from previous versions of ER formats feature is available in the Feature management workspace as of Dynamics 365 Finance version 10.0.23. For more information about how to set up the parameters of an ER format for each legal entity, see Set up the parameters of an ER format per legal entity.

To automatically generate a VAT declaration, associate sales tax codes in the application and lookup results in the ER configuration.

Set up application-specific parameters for Report field lookup

Follow these steps to define which sales tax codes generate which lines on the VAT declaration (for lines 01–35 and 63–75).

1. Go to Workspaces > Electronic reporting, and select Reporting configurations.
2. Select the VAT declaration XML (HU) configuration, and then select Configurations > Application specific parameters setup.
3. On the Application specific parameters page, on the Lookups FastTab, select Report field lookup.
4. On the Conditions FastTab, set the following fields to associate the sales tax codes and report fields.

Field	Description
Lookup result	Select the value of the report field. For more information about the values and their assignment to VAT declaration lines, see the [VAT declaration overview](#VAT-declaration-overview) section earlier in this topic.
Tax code	Select the sales tax code to associate with the report field. Posted tax transactions that use the selected sales tax code will be collected in the appropriate declaration box. We recommend that you separate sales tax codes in such a way that one sales tax code generates amounts in only one declaration line.
Transaction classifier	If you created enough sales tax codes so that one sales tax code generates an amount on only one VAT declaration line, you can select *Not blank*. Otherwise, select a transaction classifier. The following transaction classifiers are available: ·        Purchase – Tax receivable from a purchase or a purchase reverse charge. ·        PurchaseExempt –Tax-exempt purchase. ·        Sales – Tax payable. ·        SalesExempt – Tax-exempt sale. ·        SalesReverseCharge – Tax payable from a purchase reverse charge. ·        Use tax – Use tax. For each transaction classifier, a classifier for the credit note is also available. For example, one of these classifiers is PurchaseCreditNote. Be sure to create two lines for each sales tax code: one that has the transaction classifier value and one that has the transaction classifier for the credit note value.

 

Note

Associate all sales tax codes with lookup results. If any sales tax codes should not generate values on the VAT declaration, associate them with the Other lookup result.

Set up application-specific parameters for Details

1. On the Application specific parameters page, on the Lookups FastTab, select Details lookup.
2. On the Conditions FastTab, define which sales tax codes generate which lines on the VAT declaration (for lines 37–42, 45–62, 79, and 88–95, which are details of lines 01–35 and 63–75 that are defined in Report field lookup).
3. Create the last line, and associate all other sales tax codes with the Other lookup result.

Lookup result	Tax code	Transaction classifier
Other	*Not blank*	*Not blank*

 

Set up application-specific parameters for In-kind contributions, Assets, and Annex I

1. On the Application specific parameters page, on the Lookups FastTab, select In-kind lookup.
2. On the Conditions FastTab, define which sales tax codes are for in-kind contributions and generate values on lines 44 and 78.
3. Create the last line, and associate all other sales tax codes with the Other lookup result as shown in the last step of the previous procedure.
4. On the Lookups FastTab, select Assets lookup.
5. On the Conditions FastTab, define which sales tax codes are for assets (property, plant, and equipment), sales, and purchases, and generate values on lines 43 and 77.
6. Create the last line, and associate all other sales tax codes with the Other lookup result as before.
7. On the Lookups FastTab, select AnnexI lookup.
8. On the Conditions FastTab, define which sales tax codes generate values in section 65A-01-05 (lines 100 and 101) of the VAT declaration.
9. Create the last line, and associate all other sales tax codes to the Other lookup result, as before.
10. On the Lookups FastTab, select Summary report lookup.
11. On the Conditions FastTab, define which invoice sales tax groups and sales tax codes should be included in the 65M summary report when they are used in vendor invoices. If all vendor invoices should be included on the Summary report, regardless of sales tax groups and sales tax codes, create the following lines.

Lookup result	Tax code	Tax group
Included	*Not blank*	*Not blank*
Included	*Not blank*	*Blank*

 

Set up application-specific parameter for the XML file format version

1. On the Application specific parameters page, on the Lookups FastTab, select XML values lookup.
2. On the Conditions FastTab, define values for some constant XML elements:

• In the Element column, select FormatVersion.
• In the Lookup result column, enter the value of the format version. For example, for the XML file 2265 applicable for the year 2022, enter 2.0.

3. On the Action Pane, select Export to export the settings in an XML file. Then close the page.
4. Select the VAT declaration Excel (HU) configuration, and then select Configurations > Application specific parameters setup.
5. Select Import, and select the file that you exported earlier.

Set up the VAT reporting format for preview amounts in Excel

1. In the Feature management workspace, find and select the VAT statement format reports feature in the list, and then select Enable now.
2. Go to General ledger > Setup > General ledger parameters.
3. On the Sales tax tab, on the Tax options FastTab, in the VAT statement format mapping field, select the VAT declaration Excel (HU) ER format.

This format is printed when you run the Report sales tax for settlement period report. It's also printed when you select Print on the Sales tax payments page.

4. On the Tax authorities page, select the tax authority, and then, in the Report layout field, select Default.

If you're configuring the VAT declaration in a legal entity that has multiple VAT registrations, follow these steps.

1. Go to General ledger > Setup > General ledger parameters.
2. On the Sales tax tab, on the Electronic reporting for countries/regions FastTab, on the line for HUN, select the VAT Declaration Excel (HU) ER format.

Set up electronic messages

Download and import the data package that has example settings for electronic messages

The data package contains electronic message settings that are used to preview the VAT declaration in Excel. You can extend these settings or create your own. For more information about how to work with electronic messaging and create your own settings, see Electronic messaging.

1. In Microsoft Dynamics Lifecycle Services (LCS), in the Shared asset library, select Data package as the asset type, and then download HU VAT declaration package. The downloaded file is named HU VAT declaration package.zip.
2. In Finance, in the Data management workspace, select Import.
3. On the Import FastTab, in the Group name field, enter a name for the job.
4. On the Selected entities FastTab, select Add file.
5. In the Add file dialog box, verify that the Source data format field is set to Package, select Upload and add, and then select the zip file that you downloaded earlier.
6. Select Close.
7. After the data entities are uploaded, on the Action Pane, select Import.
8. Go to Tax > Inquiries and reports > Electronic messages > Electronic messages, and validate the electronic message processing that you imported (HU VAT declaration).

Configure electronic messages

1. Go to Tax > Setup > Electronic messages > Populate records actions.
2. Select the line for HU Populate VAT return records, and then select Edit query.
3. Use the filter to specify the settlement periods to include on the report.
4. If you must report tax transactions from other settlement periods in a different declaration, create a new Populate records action, and select the appropriate settlement periods.

Preview the VAT declaration, incoming transactions, and outgoing transactions in Excel

Preview the VAT declaration in Excel from the Report sales tax for settlement period periodic task

1. Go to Tax > Periodic tasks > Declarations > Sales tax > Report sales tax for settlement period.
2. Set the following fields.

Field	Description
Settlement period	Select the settlement period.
Sales tax payment version	Select one of the following values: ·        Original – Generate a report for the sales tax transactions of the original sales tax payment or before the sales tax payment is generated. ·        Corrections – Generate a report for the sales tax transactions of all the subsequent sales tax payments for the period. ·        Total list – Generate a report for all the sales tax transactions for the period, including the original and all corrections.
From date	Select the start date of the reporting period.

3. Select OK, and then, in the Electronic report parameters dialog box, set the following fields.

Field	Description
Tax base - Deductible amount moved from previous period Tax amount - Deductible amount moved from previous period	Enter the amounts that have been moved from the previous period. These amounts are shown on line 82.
Tax base - Receivable amount carried forward Tax amount - Receivable amount carried forward	Enter the amounts to move to the next period. These amounts are shown on line 86.

 

4. Select OK, and review the Excel report.

Settle and post sales tax

1. Go to Tax > Periodic tasks > Declarations > Sales tax > Settle and post sales tax.
2. Set the following fields.

Field	Description
Settlement period	Select the settlement period.
Sales tax payment version	Select one of the following values: ·        Original – Generate the original sales tax payment for the settlement period. ·        Latest corrections – Generate a correction sales tax payment after the original sales tax payment for the settlement period was created.
From date	Select the start date of the reporting period.

 

3. Select OK.

Preview the VAT declaration in Excel from a sales tax payment

1. Go to Tax > Inquiries and reports > Sales tax inquiries > Sales tax payments, and select a sales tax payment line.
2. Select Print report, and then select OK.
3. Review the Excel file that is generated for the selected sales tax payment line.

Note

The report is generated only for the selected line of the sales tax payment. If you must generate, for example, a corrective declaration that contains all corrections for the period, or a replacement declaration that contains original data and all corrections, use the Report sales tax for settlement period periodic task.

Generate a VAT declaration from electronic messages

When you use electronic messages to generate the report, you can collect tax data from multiple legal entities. For more information, see the Run a VAT declaration for multiple legal entities section later in this topic.

The following procedure applies to the electronic message processing example that you imported earlier from the LCS Shared asset library.

1. Go to Tax > Inquiries and reports >** Electronic messages** > Electronic messages.
2. In the left pane, select HU VAT declaration.
3. On the Messages FastTab, select New, and then, in the Run processing dialog box, select OK.
4. Select the message line that is created, enter a description, and then specify the start date and end date for the declaration.

Note

Steps 5 through 7 are optional.

5. Optional: On the Messages FastTab, select Collect data, and then select OK. The sales tax payments that were generated earlier are added to the message. For more information, see the Settle and post sales tax section earlier in this topic. If you skip this step, you can still generate a VAT declaration by using the Tax declaration version field in the Declaration dialog box.
6. Optional: On the Message items FastTab, review the sales tax payments that are transferred for processing. By default, all sales tax payments of the selected period that weren't included in any other message of the same processing are included.
7. Optional: Select Original document to review the sales tax payments, or select Delete to exclude sales tax payments from processing. If you skip this step, you can still generate a VAT declaration by using the Tax declaration version field in the Declaration dialog box.
8. On the Messages FastTab, select Update status. In the Update status dialog box, select Ready to generate, and then select OK. Verify that the message status is changed to Ready to generate.
9. Select Generate report. To preview the VAT declaration amounts, in the Run processing dialog box, select Preview report, and then select OK.
10. In the Electronic reporting parameters dialog box, set the fields as described in the Preview the VAT declaration in Excel from the Report sales tax for settlement period periodic task section earlier in this topic, and then select OK.
11. Select the Attachments button in the upper-right corner of the page, and then select Open to open the file. Review the amounts in the Excel documents.
12. Select Generate report.
13. To generate a report in XML format, in the Run processing dialog box, select Generate report, and then select OK.
14. Set the following fields.

Field	Description
Report periodicity	Select Monthly, Quarterly, or Yearly.
Tax representative	Select a tax representative, if applicable.
Contact person	Select the employee who is a contact for the declaration.
Signatory person	Select the employee who signs the declaration.
Power of attorney	If you selected a tax representative, select the type of power of attorney: Add-hoc or Permanent.
Threshold exceeded	Select Yes if you exceeded the threshold.
Tax base - Deductible amount moved from previous period Tax amount - Deductible amount moved from previous period	Enter the amounts that have been moved from the previous period. These amounts are shown on line 82.
Tax base - Receivable amount carried forward Tax amount - Receivable amount carried forward	Enter the amounts to move to the next period. These amounts are shown on line 86.

 

15. Select the Attachments button in the upper-right corner of the page, and download the electronic file that was generated. You should then manually upload this file to the tax authority tool or portal.

Run a VAT declaration for multiple legal entities

To use the formats to report the VAT declaration for a group of legal entities, you must first set up the application-specific parameters of the ER formats for sales tax codes from all required legal entities.

Set up electronic messages to collect tax data from several legal entities

Follow these steps to set up electronic messages to collect data from multiple legal entities.

1. Go to Workspaces > Feature management.

2. Find and select the Cross-company queries for the populate records actions feature in the list, and then select Enable now.

3. Go to Tax > Setup > Electronic messages > Populate records actions.

4. On the Populate records action page, select the line for HU Populate VAT return records.

   In the Datasources setup grid, a new Company field is available. For existing records, this field shows the identifier of the current legal entity.

5. In the Datasources setup grid, add a line for each additional legal entity that must be included in reporting. For each new line, set the following fields.

Field	Description
Name	Enter a value that will help you understand where this record comes from. For example, enter VAT payment of Subsidiary 1.
Message item type	Select VAT return. This value is the only value that is available for all the records.
Account type	Select All.
Master table name	Specify TaxReportVoucher for all the records.
Document number field	Specify Voucher for all the records.
Document date field	Specify TransDate for all the records.
Document account field	Specify TaxPeriod for all the records.
Company	Select the ID of the legal entity.
User query	This checkbox is automatically selected when you define criteria by selecting Edit query.

 

6. For each new line, select Edit query, and specify a related settlement period for the legal entity that is specified in the Company field on the line.

When the setup is completed, the Collect data function on the Electronic messages page collects sales tax payments from all the legal entities that you defined.