Data Reconciliation Instead of Auditing?

As of January 1, 2025, the tax authority has introduced a new type of tax administration procedure that is practically fully automated.

The newly introduced data reconciliation procedure represents another step by the National Tax and Customs Administration (NAV) towards increasing transparency for economic operators and ensuring compliance with legal regulations. The aim of the new procedure is to identify and correct data discrepancies, thereby promoting the whitening of the economy.

The background to the introduction of the data reconciliation procedure includes the legislative intent to leverage the NAV’s expanding data assets and digitalization efforts to enable low-resource, continuous taxpayer monitoring. Additionally, the data reconciliation procedure can simultaneously reach out to taxpayers en masse, urging them to clarify and correct identified discrepancies.

Taxpayers have 15 days to respond to the authority’s inquiries by completing a form available on the NAV’s Client Portal.
If taxpayers fail to comply with the request and do not provide a statement regarding the identified discrepancies, they may face a penalty of up to HUF 300,000 and may even find a mandate letter in their electronic mailbox.

Until now, only a narrow group of taxpayers has encountered this procedure, but the NAV has declared its intention to launch mass examinations within a few weeks.

Therefore, it is particularly important for taxpayers to regularly review the data reported to the Tax Authority and compare it with the information at their disposal. If necessary, they should make corrections and provide additional data. By taking these steps, they may even avoid a tax audit.

If you have any questions regarding the new procedure or need professional assistance, feel free to contact the experts at BDO Hungary.

Sára Csoma,  Brigitta Dr. Mucsi-Szabó