In order to exploit the value in its data assets, as well as to increase the synergy between scientific methodologies and experience in the field of taxation, the National Tax and Customs Administration (NAV) will create an Artificial Intelligence Working Group, according to a recent issue of the Official Gazette (Magyar Közlöny).

The function of the Artificial Intelligence Working Group will be to make recommendations, as well as to provide opinions and advice. The working group will be composed of the ministers responsible for tax policy, IT and e-government, the leaders of NAV, the Hungarian Central Statistics Office, the National Data Assets Agency, the National Laboratory for Artificial Intelligence, the National Data Economy Knowledge Centre, and the Digital Wellbeing Programme as permanent members, as well as external experts, the communication writes.

The goals of the new working group are fairly general, but they clearly aim to make the most of the data assets accumulated through the strong digitisation of the tax administration in recent years.

One of the most significant sources of this data, in addition to online cash registers, tax returns and NAV’s own operations, is the Online Invoice system. Although no major changes affecting taxpayers have been made to the Online Invoice System for a year, and current communication from NAV suggests that no such changes are expected in the next 6 to 12 months either, developments in the background have not slowed down.

While the legislation has been repealed, the eVAT system is not thrown out

With the eVAT system, Hungary would have been among the first countries in the EU to offer a service whereby the tax administration prepares draft VAT returns for tax subjects, but after several delays the legislation that would have authorised this was suddenly repealed at the end of last year. However, the developments made by then were not necessarily thrown out, and the results created can be aligned well with the decision support systems that are now also being enhanced with artificial intelligence and machine learning.

It is not enough to be good, you must also look good

The Online Invoice system will be four years old this year, and its scope has been extended to all Hungarian taxpayers for a year. The tens of millions of invoices submitted each month can paint a pretty comprehensive picture of economic transactions and actors. Every mistake made when submitting invoices online can distort the picture that the tax administration has on our company and our customers. With the developments by NAV, the importance of transmitting accurate data about our company to the tax authorities’ systems is constantly increasing.

In the framework of our tax IT services, we are pleased to offer our assistance in checking and reviewing online invoice data, and in supplementing missing or incorrect data.