How to Issue a Receipt Correctly: A Step-by-Step Guide for Beginners

Issuing receipts may seem confusing at first glance, especially if you are just starting your business. When should you give a receipt instead of an invoice? What information should be included? Is a simple piece of paper sufficient, or is a machine-printed receipt mandatory?

I hear these questions every day from new entrepreneurs. The good news is that filling out a receipt is easier than you might think.

In this guide, we will show you step by step how to issue a receipt correctly. We will discuss the use of receipt books, filling out manual receipts, the advantages of electronic receipts, and we will even provide a sample receipt for you to practice filling out.

What is a receipt and when is it mandatory to issue one?

The concept of a receipt

A receipt is a document suitable for tax identification purposes, the exact content of which is determined by law. Many people confuse the concepts of an invoice and a receipt, but there is an important difference between them.

The invoice relates to the performance of the transaction, while the receipt confirms receipt of payment. So when you accept money from the buyer, the receipt proves that payment has been made. This document plays a role in checking tax returns and preventing tax fraud.

The mandatory information contained in a receipt is simpler than that in an invoice. It must contain at least four elements: the receipt number, the name, address, and tax number of the issuer, the date of issue, and the amount paid.

When to issue a receipt instead of an invoice

According to the basic provisions of the VAT Act, taxpayers are primarily required to issue invoices for all sales. However, you are exempt from the obligation to issue invoices if all three of the following conditions are met:

1. The buyer is not a taxpayer, e.g., a private individual.

2. The consideration shall be paid at the latest upon performance in cash, by card or by substitute means.

3. The consideration, including VAT, does not exceed HUF 900,000, and the buyer does not request an invoice.

If all these conditions are met, you must issue a receipt instead of an invoice. However, an invoice may only be issued if, for example, the customer transfers the amount or pays cash on delivery. Similarly, an invoice is required when the buyer pays in cash but requests a personalized invoice.

Important to know: it is mandatory to hand over the receipt to the customer. This does not mean that you have to hand it over personally; if the customer refuses to accept it, even though they could have done so, you have still complied with the regulations. However, you are in breach of the regulations if you do not issue a receipt or if you issue one but do not make it available to the buyer.

Additional rule: instead of a receipt, you can also decide to issue an invoice, which is permitted. In this case, you are also exempt from the obligation to issue a machine-printed receipt.

Exceptions to the obligation to issue receipts

There are cases where, according to legal regulations, you are not even required to issue a receipt. These exemptions are automatic and do not require a request.

The most common exceptions are: the sale of press products, the provision of gambling services, and sales via vending machines. For example, no receipt is required for purchases made from a drinks vending machine.

Furthermore, you may be exempt from the obligation to issue receipts in the case of certain tax-exempt transactions, provided that the document complies with the provisions of the Accounting Act. In addition, you do not have to issue a receipt for international air passenger transport departing from or arriving at a foreign location if the customer does not request one. In such cases, however, you must issue an appropriate accounting document in accordance with the Accounting Act.

However, tax-exempt services, such as other education, dental or dental technician services, as well as healthcare activities not performed by public service providers, are not exempt from the obligation to issue receipts due to their public interest nature.

Types of receipts in Hungary

In Hungary, there are three main types of cash registers, each with its own scope of application. The choice depends on whether you are required to use a cash register and what type of business you operate.

Electronic receipt (online cash register receipt)

A machine receipt is a document issued by an online cash register, primarily in paper form. You must use this type if your business is subject to cash register requirements.

Annex 1 of Decree 48/2013 (XI. 15.) NGM lists precisely which activities fall under this category. In addition to retail, hospitality, and rental activities, the regulation also covers accommodation providers, massage therapists, plastic surgeons, car mechanics, sports centers, and discos. However, hairdressers and beauticians are still not covered by the decree.

Machine receipts are sent to the NAV system at least once a day via the online cash register. The indication of the product or service sold on receipts issued by the online cash register depends on the functionality of the cash register. It is possible that only a sales collector will be indicated, which indicates a VAT rate and appears on the receipt as Collector01 or Collector02. In other cases, the name and identification number of the product sold may also be included, as is customary in larger retail chains.

In addition, you can be exempted from the obligation to issue a machine-printed receipt if you issue an invoice instead of a receipt. According to Section 166(2) of the VAT Act, you can fulfill your documentation obligation by issuing an invoice.

Manual receipt - use of receipt pads

A manual receipt is a paper-based, handwritten document that you issue from a numbered receipt pad. You can use this type if you are not required to use a cash register.

Using a receipt book is simple: the receipt must include the date of issue and the issuer's details, i.e. tax number, name, and address. In the case of a sole proprietorship, you must also include the registration number. In addition, you must record the gross value of the product or service sold.

Important rule: you must give the customer a paper receipt and then store it on paper. The obligation to report the contents of manually issued receipts electronically is expected to come into effect on September 1, 2026. The data must be reported on a daily basis, broken down by tax rates. The data will be reported via the electronic interface provided by the state tax and customs authority.

As a cash register operator, you can also use manual receipts, but only in certain cases and for a limited period of time. For example, you can use them during a power outage or while your cash register is being inspected. In such cases, you are exempt from the data reporting obligation for manually issued receipts that you issued due to a cash register malfunction, thus avoiding double data reporting.

A computer-generated receipt is a digitized form of a paper-based, handwritten receipt. You can issue it using software and send it to the buyer's email address. However, its use is not necessarily suitable for all situations, as these receipts must be transmitted and stored electronically.

Electronic receipt (e-receipt)

An e-receipt is an electronic receipt issued by an e-cash register. Only e-receipts can be issued by e-cash registers, not paper receipts.

The primary form of the e-receipt is electronic, but a paper copy must be printed at the customer's request. E-cash registers send the issued electronic receipts to the receipt repository. The receipt repository is the central element of the e-receipt system, a digital data repository that stores e-receipts for ten years from the date of receipt and makes them available to the buyer.

The mandatory data content of e-receipts is more extensive than that of other types of receipts. The name of the product sold, its global trade item number (if available), and its quantity must be indicated. In the case of services, the name and quantity must be indicated if they can be expressed in natural units of measurement. In addition, the percentage corresponding to the applicable tax rate must be indicated.

Customers can access and view their e-receipts via a customer app. During the sale, the seller issues an e-receipt using a suitable electronic cash register. The e-receipt is automatically sent to the receipt repository operated by the NAV, where it is stored securely.

It is important to clarify that computer-generated receipts were previously referred to by many as e-receipts, but this is a misnomer. According to the law, e-receipts can only be issued by e-cash registers.

Mandatory information on receipts

The VAT Act specifies exactly what information you must include on every receipt. These requirements ensure that the document is suitable for tax administration checks and complies with legal requirements.

Date of issue and serial number

You must always indicate the date of issue on the receipt. This is the date of payment, not the date of fulfillment of the transaction. However, if the date of fulfillment differs from the date of issue, you must indicate the date of fulfillment separately.

The serial number is a mandatory element of every receipt. This serial number must uniquely identify the receipt. In other words, no two receipts can have the same serial number. The numbering must be continuous and allow your receipt to be traced.

When using receipt pads, the printing company pre-prints the serial numbers on the pads. For machine-printed receipts, the cash register automatically generates the serial number. For electronic receipts, the e-cash register provides unique identification.

Issuer details

You must always record three basic details about the issuer of the receipt: their tax number, name, and address. These details identify the person who sold the product or provided the service.

As a sole trader, you are subject to additional requirements. You must also include your registration number. This number uniquely identifies you in the tax authority's records.

Special rules apply in the case of group VAT liability. In this case, in addition to the group identification number, you must also indicate the tax number of the member performing the transaction. Furthermore, if a financial representative is used, the representative's name, address, and tax number must also be included on the receipt.

The mandatory data content of e-receipts is more extensive than that of other types of receipts. In addition, you must provide the name of the product sold, its global trade item number (if available), and its quantity. In the case of services, you must indicate the name and quantity if it can be expressed in natural units of measurement.

Amount of consideration

The receipt must include the consideration for the sale of the product or provision of the service, including tax. This is the gross amount, which already includes VAT.

In special cases, you must also provide additional information. You must indicate the percentage corresponding to the applicable tax rate. In the case of tax-exempt transactions, you must clearly indicate that the sale of the product or the provision of the service is exempt from tax.

Special markings are required when applying certain special taxation methods. In the case of reverse taxation, you must indicate the term "reverse taxation." When applying cash accounting, you must use the term "cash accounting." When selling used movable property, works of art, or antiques, you must include the appropriate term "margin scheme."

Storage and preservation rules

The Accounting Act stipulates that taxpayers are required to retain receipts. You must retain receipts until the statute of limitations for tax assessment expires.

In general, the statute of limitations expires on the last day of the fifth year following the last day of the year in which the tax return was filed or the tax was paid. In addition, you must keep accounting documents supporting your bookkeeping records in a legible form for at least eight years.

If different rules specify different retention periods for the same document, you must always apply the longer period. You must retain financial statements for the fiscal year and supporting documents for eight years.

You must store receipts in a legible form, retrievable based on references in your accounting records. If you store the document incorrectly or not at all, the tax authority may impose a fine of between HUF 50,000 and HUF 500,000.

When storing digital documents, you must also ensure that you have a backup copy. It is not enough to store the necessary document in a single copy; you must also make one or more copies on another data storage medium.

Step by step: Filling out the receipt

Filling out a receipt correctly is a series of practical steps that every entrepreneur needs to know. The process consists of five main steps, each of which plays a role in ensuring that the document complies with legal requirements.

Step 1: Select the appropriate type of sedative

First, I need to determine which type of receipt I can or must use. This depends on whether I am engaged in activities that require the use of a cash register.

If I am engaged in retail, catering, or rental activities, I must issue a machine receipt using an online cash register. The regulation also applies to accommodation providers, massage therapists, plastic surgeons, car mechanics, sports centers, and discos. In such cases, I can only issue receipts using an online cash register.

Manual receipts are paper-based and can be produced in receipt book format or on a computer. I can use these if I am not required to use a cash register. I must give these to the customer on paper and then store them in the same way.

I can currently issue e-receipts in all cases where a manual receipt can be issued. When purchasing on electronic platforms, if the buyer pays immediately by credit card and provides their email address, this is a very practical solution.

Step 2: Fill in the issuer's details

The issuer's details must be included. I must record my tax number, name, and address. As a sole trader, I must also include my registration number.

In online billing systems, I can usually set these details in advance. In the Billingo system, for example, these details appear automatically when issuing receipts. When using receipt pads, I have to enter them manually on each receipt.

Step 3: Enter the serial number and date

When issuing a receipt, I must indicate the date. The online invoicing program automatically sets the current date, which cannot be changed. This ensures that the receipt is recorded in real time.

The serial number uniquely identifies the receipt. In the case of receipt pads, the printer pre-prints the serial numbers on the pad. For machine-generated receipts, the cash register automatically generates the serial number. Serial numbering is also automatic in online billing systems, so I don't have to do it manually.

Step 4: Record the consideration

When describing the transaction, I must specify what item or transaction the receipt is for. This can be the name of a product or a description of a service.

Next, I need to record the gross amount. This is the total amount paid for the receipt. Optionally, I can specify the VAT rate applied to the item sold. This is not mandatory, but it can be useful for determining the net amount of the sale.

I also have to indicate the payment method. I can choose between cash, credit card, SZÉP card, PayPal, health insurance card, coupon, voucher, or other payment methods. Receipts can also be paid by instant transfer, in which case I select the "other" option.

When issuing an e-receipt, the email address of the recipient of the receipt is mandatory. The e-receipt will be automatically sent to this address at the same time as the receipt is created. Providing a name is optional, but may be useful for registration in the partner list.

Step 5: Give the receipt to the customer

It is a mandatory part of issuing a receipt that I must also hand over the issued receipt to the buyer. This does not necessarily mean handing it over in person. If the buyer refuses to accept it, even though they could have done so without any difficulty, this does not affect my compliance with the regulations.

Important rule: I must issue and hand over the receipt before receiving the money, not after. When issuing a manual receipt, I cannot administer it retrospectively, i.e. I cannot fill out the receipt after the buyer has already paid and left. In such cases, I cannot claim that the buyer was in a hurry and did not wait for the receipt to be issued.

The tax authority checks the issuance of receipts on site by making test purchases. In the case of test purchases, the inspectors pay in cash and want to know whether I have recorded the revenue in the cash register and whether a receipt is issued and handed over. The inspectors not only check whether the test purchaser received a receipt, but also whether other customers received receipts in their presence.

Calculator or handwritten receipts do not meet the definition of a receipt. Only receipts that comply with legal requirements may be issued.

Filling out a manual receipt - Practical example

The receipt pad is used manually, and although it seems simple, there are a few practical things to know that will make your work easier. A standard receipt pad contains 50 receipts, each with a unique serial number. Each serial number appears on two sheets of paper in succession: one blue and one yellow.

Filling out a receipt based on a sample

At the beginning of the receipt book, there is a white sheet of paper that helps you fill it out. This sheet must always be placed behind the yellow receipt. You must write on the blue receipt, and with the help of the indigo paper, it will be filled out at the same time as the yellow copy.

First, I need to enter the current date in the "East" field. This is the date on which the sale took place. It is important not to confuse this with the date of fulfillment; always enter the date on which the money was received.

Then I have to enter the amount in the "Received" line in numbers. I have to write it accurately and legibly. Some receipt books also have space for the name of the product or service, which is worth filling in for the sake of transparency.

Finally, the signature follows. The signature must be made by the person who received the money from the buyer. This confirms that the transaction has taken place and that I have issued the receipt.

When this information has been entered on the receipt, I must carefully remove the blue copy from the receipt book at the perforated section. I must hand this copy over to the customer together with the goods. The yellow copy remains in the receipt book, which serves as my record and the basis for subsequent checks.

The obligation to report data electronically on the contents of manually issued receipts is expected to come into effect on September 1, 2026. Data reporting must be performed on a daily basis, broken down by tax rates, via the electronic interface provided by the state tax and customs authority.

Common mistakes when using the receipt pad

Incorrectly filling out cash payment invoices and receipts constitutes a violation of the law. For this reason, the NAV may impose a default penalty of up to HUF 200,000 for private individuals and up to HUF 500,000 for non-private individuals.

Many people make mistakes when determining the VAT rate on receipts. Although filling out a receipt seems like a simple task, this part can be tricky. The trick is that in certain cases, the VAT rate must be entered in two places, and these VAT rates are not always the same. This is where many people make mistakes when filling out receipts.

Another common mistake is when someone forgets to include their tax number or address. The buyer can only account for the costs if the receipt contains all the mandatory information. If it is issued incorrectly, the buyer has the right to refuse to accept it.

It is important to note that I cannot issue a receipt if the buyer pays by bank transfer or cash on delivery. Furthermore, an invoice and a receipt cannot be issued simultaneously for the same transaction. If an invoice is issued after a receipt has been issued from the online cash register because the buyer requests an invoice when the command to issue the receipt can no longer be revoked, the receipt must be canceled.

If I messed up the receipt, I have to cancel the receipt with that serial number. I draw a line with a pen from the lower left corner to the upper right corner and write "CANCELED" on the line. In this case, I have to put both the blue and yellow receipts back in the receipt book in the place corresponding to the serial number. This ensures that the numbering remains continuous and that all receipts can be retrieved.

Correcting and invalidating receipts

Mistakes can happen to anyone when issuing receipts. The important thing is to know what to do when you discover a mistake on a receipt or when a customer returns goods.

How to correct an incorrect receipt

If the receipt is incorrect, do not destroy the original document. Even if it is incorrect, you must keep the receipt because it is recorded in the cash register's log file. The data can be traced back based on the incorrect receipt and corrected if necessary.

After recording the incorrect receipt, the cash register usually allows you to issue a corrected receipt or a cancellation. Indicate on the corrected receipt that it is a corrected version of the original transaction. At the same time, make sure that the cash register log file contains both the incorrect and corrected receipts. This ensures correct accounting to the NAV.

Also, note why the incorrect receipt was issued, who issued it, and when the correction was made. This will help with future audits and reduce the risk of misunderstandings. An incorrect receipt is not considered a violation in itself, provided that you correct the error in a timely and appropriate manner and all transactions remain recorded in the system.

When to cancel a receipt

According to the cash register regulation, it is mandatory to issue a cancellation receipt on the cash register. A cancellation receipt is used to invalidate a receipt issued on the current tax day. A return receipt can be used to cancel a receipt that was not issued on the current tax day.

A cancellation receipt is typically required when a closed receipt needs to be canceled due to operator error, customer withdrawal from the purchase, or other reasons. For the cancellation receipt, you must enter the details of the original receipt to be canceled, the buyer's details, and then enter the items from the original receipt.

The cash register requests the date of the original receipt in YYYYMMDD format, the original AP number in A01412345 format, the type of original receipt (receipt or simplified invoice), and the receipt number in 1234/12345 format. You must then select the reason for the reversal:

1. customer withdrawal

2. incorrect entry

3. incorrect currency input

4. product not in stock

5. issuing an incorrect type of document

6. unsuccessful use of payment instrument

7. incorrect customer data/incorrect entry

8. test purchase

9. other

In addition, the cash register requests the buyer's company name, postal code, location, name of public area, type, house number, and tax number. The cancellation receipt must be closed with the same type of payment method that was used to pay the original receipt. According to the regulation, the cancellation receipt is a tax document, so the rules for the retention of tax documents also apply to these.

What to do if you lose your receipt

There is no legislation requiring the tax authority to be notified of the loss of receipt books, but it is still advisable to do so. It is also advisable to publish a notice in an official gazette, such as the National Economic Gazette.

The report must include the name and registered office of the entrepreneur who owns the receipt book, the serial number of the lost receipt book, and the date of invalidation. You must also prepare a disposal report on the lost documents, detailing the date and circumstances of the loss of the forms, the date of discovery of the loss, and the measures taken in this regard. You can also attach the report issued by the police to this.

In the event of failure to retain receipts produced by printing, the amount of the penalty that may be imposed is up to HUF 200,000 per receipt for private individuals and up to HUF 500,000 per receipt for other taxpayers.

Conclusion

You now have all the knowledge you need to issue receipts correctly in your business. Issuing receipts may seem complicated at first glance, but it is actually a simple matter of practice.

The key is to follow the steps consistently and always include the required information. If in doubt, always refer back to this guide and check that everything is correct.

With practice, you will become more confident in filling out receipts. Follow the rules, keep your receipts properly, and you will avoid penalties from the tax authorities. Start applying this knowledge today, and your business administration will be in order.