A turn regarding the M sheet: the new completion rules do not have to be applied after all

In our newsletter published a few weeks ago, we presented in detail the stricter completion rules for the domestic recapitulative statement - commonly known as the M sheet - entering into force as of 1 July 2026. Since then, however, a significant turn has taken place: the legislator has initiated the withdrawal of these amendments, therefore the previous rules will evidently remain applicable.

The stricter data reporting requirements were introduced by Act LXXXIII of 2025 on the amendment of certain tax acts for the purposes of administrative reduction and legal harmonisation, with effect from 1 July 2026. Owing to the legislative deadlines, the entry into force of the amendments could no longer be prevented following the elections, and they therefore formally entered into force on 1 July 2026.

According to the information published by the Ministry of Finance on 25 June 2026, however, the government's objective is that the invoice-level data reporting of the domestic recapitulative statement (M sheet) may continue to be fulfilled with unchanged content after 1 July 2026 as well. This intention has in the meantime taken exact legislative form: on 17 July 2026, the Government submitted Bill No. T/387, which regulates at the statutory level the withdrawal of the previously adopted stricter rules.

The bill currently before the Parliament aims to abolish the stricter rules applicable to received invoices in the M sheet data reporting. To this end, by re-regulating the "Receipt of invoice" subheading of Annex 10 to the VAT Act, it restores the previous, simpler data content. Accordingly, the breakdown of deductible tax by tax rate would not be mandatory to indicate in the future either.

In addition, the bill repeals the transitional provision related to the stricter rules and introduces a new transitional rule ensuring that the relief may also be applied retroactively to the return period that includes 1 July 2026. As a result, the previous, more favourable data reporting rules may also be applied in the July VAT return to be submitted by 20 August 2026. In the case of taxable persons who have opted for cash accounting, no change occurs either.

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Should you have any questions regarding the above, our advisors remain at your disposal.