The business events in the wholesales are recorded from the accounting and taxation viewpoints. The records comprise the purchase and sales of the goods and calculation of the price difference, if the goods in the warehouse are recorded per sales prices. Upon imports of goods the calculation of the purchase is made, whereby a special attention is paid to the VAT calculation and supervision records. Accounting does not deal with the sales of goods in transit.
Autor: Mr. sc. Đurđica JURIĆ, dipl. oec. i ovl. rev.
Leasing represents one of the most significant financial instruments, being mostly used upon the purchase of automobiles, vessels and premises. Leasing is a specific business which can, depending on the contract provisions, have the characteristics of a common leasing (operating leasing) or the purchase and sales (financial leasing). The article explains the term of the operating leasing, its characteristics and the procedures of its recording in book-keeping, as well as its tax position in the records of the lessor and lessee.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
In view of the accounting the vegetable production represents one type of the investments into the short-term biological assets with the aim to obtain agricultural products (picked-up vegetables). The specifics of such a type of investment and all other investments connected with the biological transformations are mostly reflected in the distribution of costs, especially the costs which can be included in the value of the produced vegetables. The author of the article analyzes the accounting of the vegetable production according to the requirements of the CFRS 17 – Agriculture i.e. IAS 41 – Agriculture and presents the example of the calculation and recording of the costs of production of such assets.
A bankruptcy procedure is initiated by the creditors or a debtor if one of the conditions for starting up the bankruptcy procedures has been fulfilled, such as insolvency and over-indebtedness. The bankruptcy procedure is carried out in order to settle the receivables of the creditors from the property of the bankruptcy debtor. The same provisions of the tax and accounting regulations applied on the companies which are not in bankruptcy are applied on the companies in bankruptcy. The bankruptcy procedure can result in the company’s recovery through the realization of the bankruptcy plan, which should be accepted by the creditors of the bankruptcy owner.
The term of the common mandatory maintenance fee appears in the field of real estate management and refers to such a real estate which is owned by a number of persons. The author of the article explains the issue of real estate management and the possible way of accounting of the assets of the common mandatory maintenance fee, which addresses the building maintenance managers and co-owners.
This workshop of budgetary accounting presents the recording and records the investments into the long-term non-financial assets of the lessor, who is a budget beneficiary, by the lessee, who is a beneficiary of another budget, including the correction of the invalid recordings of the expenditure in the current accounting period, which were incorrectly recorded in one of the previous accounting periods. There are various situations regarding the investments made by the lessee. A special attention should be paid to the position of the lessor in the value added taxation system and the advance payment of the lease fee. Due to the fact that the correction of the errors is not regulated by the budgetary accounting regulations, this article presents the example of their recordings.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
Small inventory represents short-term assets which are not used up immediately upon their putting in use. The provisions of the Directive on Accounting of Non-profit Organizations do not determine the lowest value of the objects to be recorded as small inventory. They do not define the way of writing off small inventory either. The article presents the ways of recording small inventory in non-profit organizations and the methods of writing off small inventory.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
In the managerial contract, which has the characteristics of the contract on employment, it is possible to negotiate the payment of the salary as a special reward for the achieved good business results. The salary is paid after the completion of the annual financial reports for the tax period/year. It is not included in the expenses of business operations but it is recorded on the account of the profit of the period in which it was made. Due to the fact that it is paid to the person who does not have a share in the company’s capital, it is regarded as a taxable income from the non-independent work. Accordingly, such an employee has the rights from the social insurance for the period in which the profit was made and the salary paid on this basis subjects to the payment of the contributions for pension insurance, health insurance and employment.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
The provision of the Labour Act, according to which the employer is obliged to pay the compensation for the non-used annual holiday in its total duration to the employee in case of termination of employment, became effective on 1 January 2010. The author of the article explains the way according to which such a compensation is determined and the tax position of such a payment according to the regulations on the income tax and profit tax.
Tax payers may make a claim to the authorized tax office of the Tax Administration for determination of the new sum of the monthly advance payment or determination of another period of making advance payment, due to the fact that the monthly sum of the prepaid profit tax on the PD Form for 2011 can be changed only according to the decision of the Tax Administration. The article presents the elements of the claim made by the tax payer asking for reduction of the prepaid profit tax and states the financial reports which should be enclosed in order to prove the justifiability of their claim.
Autor: Mr. sc. Mirjana MAHOVIĆ KOMLJENOVIĆ, dipl. oec.
From 1 March 2012 the tax on income from capital is to be paid on the paid dividends i.e. the payments of the share in profit based on the share in capital of companies. The above stated tax is not paid if the dividend i.e. the share in profit is invested in the share capital or if such receipts are obtained within the ESOP Programme. The article presents a brief overview of the calculation and payment of the income tax on the paid dividends i.e. the shares in profit to the physical persons, both residents and non-residents.
The system of excise duties on tobacco products which are consumed on the territory of the Republic of Croatia is determined by the Act on Excise Duties. Tobacco products (processed tobacco) comprise cigarettes, cigars and cigarillos, smoking tobacco (fine-cut tobacco and other smoking tobacco) and the products which entirely or partially contain the substances which are not tobacco, if they are appropriate for smoking without further industrial processing. The article deals with the labelling of tobacco products, the conditions and ways of ordering and handling the labels from the date of the claim for label printing until the date of label issuing from the general and extra treasuries, reporting (daily calculation of excise duties and monthly reporting), exemption from payment of excise duties on tobacco products, extension of the deadline for import of tobacco products, the return of excise duties and the securities of payment which guarantee the settlement of the liabilities for excise duties, which may emerge for the delivered tobacco labels.
Through the introduction of the concept of misuse of the EU law, the European Court of Justice has made the VAT system more equal. It has become less exposed to various procedures of deliberate evasions of tax liabilities made by the tax payers who do not have the right to the complete exemption of the input tax or the persons who are not tax payers. The concept of the misuse of law has also removed the violation of the market competitiveness, which resulted from the artificial procedures aimed at the reduction of the output tax. The principle of the misuse of law is the principle of the EU law. However, there is a specific tension between this principle and the EU principle of the legal security which does not allow to the Directives the possibility of emergence of liabilities for individuals. Accordingly, the principle of the misuse of law is applied only in the countries whose national legislation contains the provision against the misuse, which is precise and clear enough to secure to persons the awareness of their total rights and obligations. The article presents the way in which the European Court of Justice in 2006 extended the doctrine of misuse of law to the field of VAT.
The basic legal document of the European Union in the field of taxation with the value added tax is the Directive of the Council 2006/112/EZ on the common system of the value added tax. Since it was introduced it has gone through a number of changes and amendments. On 1 January 2010 the provisions of the VAT Directive regarding the place of provision of services were changed. Accordingly the tax payers should pay the value added tax in the place of the receiver of services, compared to the previous provisions, according to which such services were taxed in the place of the provider of services. In the case of provision of services to the persons who are not tax payers, the place of taxation is still the place where the service provider has its business premises. However, the general principles for provision of services to companies and end-customers cannot be applied in the specific cases. Therefore, the specific provisions of the VAT Directive are applied, according to which the taxation principle in the place of consumption is used. Such exceptions comprise restaurant services, catering of food and drink, rental of means of transportation, services in culture, sports, scientific and health services, telecommunication services, services of radio and TV broadcasting and electronically provided serviced to users, i.e. end-customers. The article analyzes the provisions of the VAT Directive regarding the place of taxation, i.e. the place of provision of services, with which the provisions of the Croatian Value Added Tax Act should be complied until the date determined by the Agreement on Accession of the Republic of Croatia to the European Union, i.e. 1 July 2013.
This presentation of advice in the field of taxes and accounting represents just a brief selection of the replies of the RRiF experts in the previous period. These pieces of advice are aimed at the improvement of the accounting and tax practice of our readers. They comprise the following topics: decrease of the share capital. foreign currency exchange gains and losses, investments in other company’s property, recognition of income and application of the value added tax rate in the case of the invoiced service which comprises two accounting periods, the recognition of the value added tax after the amendments to the Value Added Tax Act, issuing of invoices, emergence of liabilities for capital transfer tax transportation of employees to and from work, granting discounts to customers, write-off of remainder and the commission sale of goods, lease, participation of employees upon purchase of the company’s cars and the clearing payments in the case of blocked accounts.
Long-term tangible assets in the company’s balance sheet usually represents a substantial value and subjects more than other positions in the report to the influence of the company’s management i.e. the estimate of the lifetime of the assets and/or the estimate of their value by an independent expert in the case of the evaluation according to the revalued value. Therefore, such a position is specifically exposed to the auditor’s scepticism and the complete understanding of the facts used by the management upon the evaluation of the long-term tangible assets. The author of the article describes the procedures which should be carried out in the final audit upon reviewing the long-term tangible assets.
News from international accounting standards board
In October 2011 the International Accounting Standards Board published the interpretation of the IFRIC 20 which refers to the accounting recording of the expenses for disposal of materials upon ore extracting, which becomes effective on 1 January 2013. The article presents the entire interpretation.
The article presents the procedure of applying to the CIP Eco-Innovation Programme. This Programme is carried out within the framework of the Entrepreneurship and Innovation Programme, which makes up one of the three sub-programmes of the Competitiveness and Innovation Programme. The Programme finances the realization of the projects which deal with the first application or the market replication of the eco-innovative technologies, products and services which have been technically examined and proved as successful, but have not yet been launched on the market due to the market risks.
The European Commission (EC) is at present preparing the draft of the budget for the period from 2014 to 2020, which should be based on the their own sources, in order to reduce the dependence of the European Commission on the contributions made by the member countries. The EC requires the introduction of the tax on financial transactions. The USA have the highest rate of profit tax in the OECD. The Slovakian Government considers cancellation of the flat tax. The measures of the ministers of finances have been introduced in order to save EURO.
The Croatian economy has for a long time been faced with the bizarre deadlines of payment. Due to the fact that last year the consequences of such a situation resulted in the vast illiquidity (over 40 bn due and unsettled receivables), one of the instruments in the struggle against illiquidity was the Act on Deadlines of Fulfilment of Cash Liabilities, which limited the deadlines for payment between companies to 60 days. However, at the very beginning of application of this Act there were many dilemmas and questions, to which the author of the article provides some concrete answers.
This article presents an overview of the statistical reports for the needs of drawing up the balance of payments, the statement on international investments and the statements of the foreign debt of the Republic of Croatia, which the Croatian National Bank is in charge of. The article also contains the most frequent questions and dilemmas, which the companies obliged to make reports have regarding the contents, the way and the deadlines of reporting. The system of direct reporting i.e. the statistical reports, which are at present being prepared in order to draw up the balance of payments, are divided in several groups, i.e. the specific research fields being separately analyzed. The statistical research comprise the research on the foreign direct and portfolio investments, the research on exchange of services with foreign countries and the research on the crediting and depositing operations with foreign countries. The unique Decision is being prepared, which would comprise all the statistical reports in this field. It is expected to be published in June. The reports which analyze crediting and depositing operations will be presented in one of the articles in the following issues of the RRiF Magazine.
The liberalization of the rest of the capital restriction was completed on 1 January 2011. A number of subordinate regulations on foreign currency transactions became invalid on the same date, including the regulations which determined the payment transactions with foreign countries. The entire payment transactions are now determined by the Act on Payment Transactions, which has been complied with the Directive 2007/64/EZ of the European Parliament and Council. Upon performance of the payment transactions it is important to take into consideration the valid regulations on foreign currency transactions. The author of the article presents in detail the provisions of the regulations on foreign currency transactions, which determine the payment and the collection of payment in foreign currency in the country, as well as the regulations which determine the way in which the residents withdraw or deposit cash and cheques in foreign currency on the bank account. The article specifically stresses the above stated transactions for the category of the residents – the physical persons who reside in the Republic of Croatia according to the valid residence permit in duration from 183 to 365 days.
Trgovina je važna gospodarska djelatnost koja ima ključnu ulogu u gospodarstvu. U tom smislu, trgovci nastoje kroz sve zakonom dopuštene načine i oblike svoje proizvode ponuditi potrošačima, bilo putem prodajnih objekata (prodavaonica, skladišta, tržnica, prodajnih klupa, kioska i dr.) ili prodajom na daljinu i/ili u prostorijama potrošača. Za obavljanje trgovine moraju biti ispunjeni minimalni tehnički uvjeti kojima moraju udovoljavati prodaji objekti, oprema i sredstva pomoću kojih se obavlja trgovina i drugi uvjeti propisani posebnim propisom s obzirom na oblik i način obavljanja trgovine, osim u slučaju propisanih iznimaka.
The protection at work represents an organized activity – a constituent part of organization is realized through the protection activities at work using the regulations on the protection at work and through the realization of the measures and instructions of the employer. Protection at work refers to each employer regardless of his/her business activities and the number of employees.
As opposed to the ordinary termination of employment, in the case of the extraordinary termination of employment the employer is not obliged to consider the notice period. Accordingly, the extraordinary termination of employment represents an instant termination of employment and is carried out in the case when the employee commits a serious violence of the working obligation from the employment status or due to the specifically important fact, if the continuation of the employment is not possible taking into consideration all the circumstances and interests of the both contract parties (employer and employee). The contract on employment can be terminated within 15 days after the date of determining the fact on which the extraordinary termination is based (Art. 108 of Labour Act). Due to the fact that the extraordinary termination of employment represents the sanction against a serious violation of the working obligations or some other very important fact due to which the continuation of the employment status is not possible, it is necessary that the level of the violation of the working obligation or a very important fact justify the instant termination of the employment.
The author of the article presents the termination of the contract on employment in case of the employer’s bankruptcy as well as the termination of the contract on employment due to the personal or business circumstances in view of the recent court practice.
In practice there are problems of appointing, dismissal and resignation of the member of the management in the limited liability company, especially in the case when this member is the only member of the management. A limited liability company as a legal form of a company plays an important role in the business practice in Croatia. It represents the most frequent legal form of companies, selected by entrepreneurs among the offered types of economic entities. Accordingly, the problems of appointing and resignation of the member(s) of the management are rather significant.
Autori: Doc. dr. sc. Dubravka AKŠAMOVIĆ Mr. sc. Boris VUKOVIĆ
The court register introduced the possibility of entry and deleting a company from the court register electronically. It is also possible to reserve the name of the future company or to change the name of the existing company. The procedure of deleting the companies which have not submitted their financial reports for public announcement for three years and the companies which do not have any assets is specifically determined.
The new Act on Public Procurement, which became effective on 1 January 2012, introduced the new and important provisions regarding signing the contract on public services from the Annex II.B of the Act. Upon signing of such a contract the clients perform one of the regular procedures of public procurement or the specific procedure determined in the Art. 44 of the above stated Act. It should be pointed out that such a determination represents an important change in the field of contracts on public procurement of services. The practice so far was faced with certain problems upon realization of the corresponding level of transparency and market competition. The author of the article presents the procedure of signing the contract on public procurement of services, in the case when the client does not apply one of the regular procedures of public procurement, but the procedure determined in the Art. 44 of the Act. The article also presents two examples from practice, which are relevant to the clients who need the services of a public notary due to their specific characteristics.
The clients obliged to apply the Act on Public Procurement as well as the economic entities who participate in the procedures of public procurement as bidders are in practice faced with the questions to which they cannot find the answers by themselves or are not sure how to act in a concrete case, despite being familiar with the provisions of the Act on Public Procurement. The article presents the replies to some of the most frequent questions in the field of public procurement.
The Directive on the Ways of Payment of Income on the Budget Account, Obligatory Contributions and the Income for Financing of Other Public Needs in 2012 was published in the Official Gazette of the Republic of Croatia no. 37/12. Due to the fact that from 1 June 2012 a credit institution may enable the use of the IBAN construction of the transaction accounts for the domestic payment transactions too, the new Directive provides the possibility of paying the budget income, obligatory contributions and the income for financing of other public needs by means of the IBAN construction. The article presents the types of income for financing of public needs, the ways of opening a bank account and filling-in the boxes model and reference number in payment order forms.
1. Opći podatci o gospodarstvu 2. Cijene 3. Proizvođačke cijene industrije 4. Industrijska proizvodnja 5. Vanjskotrgovinska razmjena 6. Trgovina na malo 7. Turizam 8. Plaće 9. Likvidnost i solventnost 10. Zaposlenost i nezaposlenost
Neposredno prije zaključenja ovoga časopisa Ministarstvo financija izradilo je prijedlog Uredbe o načinu provedbe plaćanja doprinosa prema plaći, primicima uz plaću, odnosno mjesečnoj osnovici za obračun doprinosa temeljem radnog odnosa (dalje: Uredba). Uredba bi se trebala primjenjivati od 1. svibnja, a bit će objavljena i u Narodnim novinama, nakon što je usvoji Vlada RH. 1. Razlozi donošenja Uredbe 2. Kako će se Uredba provoditi 3. Način provedbe plaćanja doprinosa
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
