Hungary: use of fiscal cash register
Hungary
use of fiscal cash register with remote audit is mandatory
In Hungary, as from September 1st all taxpayers must use fiscal cash register with remote audit capability. According to the Tax Office information 170.000 fiscal cash register has been already installed, and users can choose now between 146 licensed models to upgrade. In Hungary taxpayers are asked to install cash registers that are directly connected to the tax office. Hungary has observed first effects and some taxpayers are now declaring much higher amounts of value added tax (VAT ).
Hungary is introducing remote audit cash register after two-year preparation. Taxpayer, who from this day will not use the appropriate cash register and software, can expect up to one million forints (3.180 Euros) penalties, the tax office can also order the closure of their shops up to 12 working days. According to the Minister of Economy Mihaly Varga VAT in the retail sector in the first half of this year is increased by 106 billion forints (337 million Euros)…
In Hungary, the traditional (off line) cash registers with fiscal memory have been in use for a long time. Nevertheless, the government decided to replace these cash registers with the second generation system, which is directly linked to the Tax office servers and data of each transaction are immediately transferred (on line).
How these cash registers operate in Hungary? The basis of the system is the control unit, which is connected with the cash register and receives all transactions from it. This control unit contains SIM card that has mobile internet connection to the Tax Office server. It uses a dedicated data channel that can not be used for other purposes. Each cash register receives from the tax office a unique code that is entered into the control unit, before cash register is put into operation. From this point cash register sends in real-time all the transactional data to the Tax office. Every transaction data is digitally signed. Control unit can store data for up to a million transactions; it also records all changes as unit disconnection or power failure. Data are transmitted automatically; taxpayers do not need to address this at all. When the unit fails to send data, it tries it again and again until it is accomplished. Tax office may disconnect any taxpayer when he is suspected of doing something illegal. Obligation to have a new certified on line cash register applies to all companies and all individuals who are VAT registered. Exempt are only those companies who trade in the places where there is no internet connection and where it would be too costly to implement. But even without internet such companies have to buy cash register and once per month they must send data to the Tax office on CD media, or after the end of the trading day make copy and take it to the place where internet coverage is available, and then send the data. Permission for exception is allowed only for a year after which conditions for renewal must be revised.
