The discounts which are granted in retail stores and service providing activities, whose users are end-consumers, principally comprise the regular discounts granted to the buyer upon purchase. The discount granted in the moment of issuing an invoice and printed on it as a deducted item from the regular retail price directly reduces the VAT base. Unlike regular discounts, the wholsale business and other activities in which an enterprise is a buyer, the buyer may obtain regular and subsequent discounts. If the compensation due to various types of discounts granted from the seller to the buyer has been subsequently reduced, such as a discount due to pre-payment (casa sconto), rebates or other types or due to the inability to collect the payment, the seller may in the tax records (I-RA Records) reduce the VAT liability only in the case if he/she obtained from the buyer a written confirmation on pre-tax adjustment in his/her tax records (U-RA Records).
Autor: Dr. sc. Đurđica JURIĆ , prof. vis. šk. i ovl. rač.
The issue of calculation and tax recognition of the depreciation of fixed assets not used for performing business activities has not been properly defined in the Croatian taxation system. The corresponding regulations do not clearly determine whether the depreciation of the assets not permanently used for business activities should be recognized, neither the assets which are temporarily not in use. This article presents the accounting procedure in the case of depreciation as a temporary difference, resulting in deferred tax assets and deferred tax liabilities.
According to the latest legal changes, the procedure of the pre-bankruptcy settlement has been transferred from the Act on Financial Operations and Pre-Bankruptcy Settlement into the Bankruptcy Act, which has been applied since 1 September 2015. According to the new regulations, the pre-bankruptcy procedure is now in jurisdiction of the court, which should enable a better protection of creditors. The Financial Agency will perform the administrative work regarding the pre-bankruptcy procedure. The article presents the most important procedures of the debtor upon realization of the pre-bankruptcy settlement and the recording of the effects of the signed pre-bankruptcy settlent in the business records of the debtor for taxation purposes.
Autor: Dr. sc. Vlasta ROŠKA , por. savj., ovl. rev. i ovl. rač.
The changed Croatian Financial Reporting Standards have been published. They comprise some minor changes due to the compliance with the Directive 2013/34/EU, which included the Accounting Act, as well. The main changes comprise the CFRS 2 – Consolidated Financial Reports. The changed standards are to be applied upon preparation of the annual financial reports for the periods starting on 1 January 2016 and on, when the new Accounting Act becomes effective, too. The article presents the overview of all the changes of the standards.
Autor: Dr. sc. Tamara CIRKVENI FILIPOVIĆ , viši pred. i ovl. rač.
The new Accounting Act, which was passed in the summer of 2015, changed the provisions regarding the persons obliged to have their financial reports audited. Due to the fact that the above stated Act becomes effective on 1 January 2016, the corresponding provisions are to be applied as of this date, too. Accordingly, the persons obliged to have an audit in 2015 are determined in the regulations stated in the par. 17 of the Accounting Act, which is still effective and the Par. 6 of the Audit Act, whose full contents are effective in 2015, too.
Autor: Dr. sc. Šime GUZIĆ , viši pred. i ovl. rač.
This workshop deals with the payment and collection of payment through mediation of a credit card company and the loss coverage of the company owned by the budgetary person from the share capital of the company.
Autor: Mr. sc. Nada DREMEL , dipl. oec., ovl. rač., ovl. rev. i porezni savjetnik
This workshop presents the recordings of: 1. Transfer of VAT Liability and 2. Foreign Currency Tax upon Deduction.
When a VAT payer transfers to the association the VAT on construction services, the association should take into consideration the circumstances of recognition of the pre-tax and accordingly include the calculated VAT into its tax records and its Ledger.
Principally, the tax upon exemption in associations, compared to legal persons, more frequently arises upon payments. However, the association is under certain circumstances not able to collect the total amount of the service provided to the partner from a foreign country. This should properly be presented in the Ledger.
Autor: Mr. sc. Nada DREMEL , dipl. oec., ovl. rač., ovl. rev. i porezni savjetnik
Associations, institutions and other non-profit organizations may, besides their orfinary activities determined by the statute, perform catering services, but not with the aim of making profit for their members or the third persons. Due to the fact that there have been some changes of the regulations regarding performing catering services by non-profit legal persons, the article presents the conditions under which non-profit legal persons may perform catering services and what is not considered as a catering service, including their obligations.
As of 1 September 2015 the workers employed by the employer whose accounts are frozen due to the impossibility to make a forced collection of payment of unpaid salaries and compensations have equal rights as the workers in bankruptcy procedure. These imply the rights to the paid salary, severance payment and compensation of damages due to the injury at work or a professional disease. These rights are exercised through the Agency for Ensurance of Workers’ Claims in the case of the employer’s bankruptcy. The procedure of ensuring the workers’ claims in the case of the employer’s bankruptcy or the employer’s frozen account due to the impossibility to make a forced collection of payment of unpaid salaries and compensations is urgent and realized in accordance with the regulations of the general administrative procedure.
Salary calculation and other payments to disabled persons subject to some specifics. The article presents certain regulations on the incentives and awards for the employers who have recruited disabled persons.
Autor: Anamarija Miletić , dipl. oec., ACCA i ovl. rev.
The overpaid contributions for pension insurance may arise when a physical person has in the accounting period realized the amount subject to the payment of contributions, which is higher than the determined annual base for the payment of contributions. The basis for the payment of contributions for pension insurance in the First and Second Pilars is limited on the monthly basis, whereas the contribution for pension insurance on the basis of the generation solidarity (First Pilar) is determined annually. If the contribution amount paid for the pension insurance in the First Pillar is higher than the legally determined annual base, the insured person may require a return of the overpaid contribution by making a claim to the Tax Administration in the corresponding GOD-DOP Form.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
The non-taxable part of the jubilee award is determined by the Income Tax Act and the Rulebook on Income Tax. The provisions of the above stated Act and Rulebook do not regulate that such an award should be paid at once to the total amount, neither in the specific period after the circumstances for the award payment arose. Accordingly, if the jubilee award is paid in instalments, under the condition that the receipt refers to the same type, the same period and the same base, it is considered as a unique amount. In the case of subsequent payments of the parts of the jubilee awards in accordance with the Decision of the Government of the Republic of Croatia, regardless of the fact that the jubilee award paid before and the part paid subsequently make up a unique amount in view of taxation and determination of the obligation to pay the contributions, such awards subject to the regulations on non-taxable payments.
The employers who have their company headquarters in other EU member country and who recruit the workers who, according to the Directive (EC) no. 883/2004 on co-ordination of the Social security systems, subject to the Croatian legislation, are obliged t calculacte and pay the controbutions for these workers according to the Croatian regulations and be registered in Croatia as contribution payers. The contributions may be paid directly on the corresponding accounts or a worker may take over this obligation and pay the contributions on behalf of the employer. The income tax from the salary is to be calculated by the worker him/herself and paid within 8 days after the receipt of the salary on the account. Afterwards, the worker should inform the Tax Administration on the effected payment in the corresponding form.
A tax position of the services provided abroad depends on the type of the service and the tax position of the recipient of the service. Upon taxation of the services provided abroad the principle of the country of the recipient of the service is applied in the case of the service provided between two tax payers, i.e. B2B (business to business). It is not important whether the tax payers are from the EU, the third countries or the third areas. Accordingly, VAT is to be calculated by the recipient of the service. On the other hand, the place of the provided service to the person who is not a tax payer, i.e. B2C (business to customers) is regarded the place in which the tax payer who provided the service has a headquarters. Accordingly, VAT is to be calculated by the service provider. However, despite the above stated regulations there are exceptions to the general taxation principles.
Tax exemption on deliveries of goods and provision of services within the agreements with diplomatic missions and consulates is determined by the VAT Act and the new Rulebook on the Rights to Tax Exemption for Diplomatic Missions and Consulates, Institutions and Bodies of the European Union and International Organizations. The term tax includes a value added tax, tariffs and a special tax on motor vehicles. According to this Rulebook the deliveries of goods or the provision of services are VAT exempted within the agreements of the diplomatic missions and consulates. The above stated tax exemption may, according to the Rulebook, be obtained for official needs by the diplomatic missions and consulates accredited to Croatia.
Autori: Renata Kalčić, dipl. oec. Ana PAVLETIĆ, dipl. oec.
According to the Amendments of the General Taxation Act the Ministry of Finance introduced certain measures, in order to improve the relationships between tax payers and tax bodies, through the following institutes: issuing of binding opinions, the possibility of making a tax settlement and the obligation to correct a tax return. Due to the fact that the General Taxation Act included only the general regulations, not the implementing ones, the Ministry of Finance had to make a special rulebook. The author of the article presents the Rulebook on Binding Opinions, Correction of Tax Return, Statistical Reports and Tax Settlement, which came into effect on 25 July 2015. It analyzes in detail the application of the General Taxation Act in view of the new institutes, the area and the subjects of its application and the deadlines for the specific procedures.
As of 1 January 2015 the interests which until 31 December 2014 were not considered as income subject to the income tax payment. They comprise the interests on the savings in HRK and foreign currency (a vista and deposited) on the giro account, the current account and the foreign currency account in banks, savings banks, including the receipts of interests on marketable securities issued in accordance with the special regulations. Due to the fact that interests are tied to the period in which they have arisen, the interests realized as of 1 January 2015 and on subject to taxation. As of 1 January 2016 the income realized from misappropriation of the financial assets acquired as of 1 January 2016 subject to taxation. The authors of the text, who work at the Ministry of Finance, present the current issues regarding the taxation of the income from capital and make a comparison with the taxation systems in other EU member countries.
The activities of a lawyer and a public notary may be performed as an indeprendent free profession in the common office, in which a number of co-entrepreneurs realizes a common income or as a legal erson founded as a public company or a limited liability company. The latter is not the topic of this article.
The article presents a tax status of lawyers and public notaries according to the Income Tax Act and the VAT Tax Act, the business records and books which should be kept according to the tax regulations and how to enter some business events in the business records.
Autor: Mr. sc. Mirjana MAHOVIĆ KOMLJENOVIĆ, dipl. oec.
Effect of Electronic Commerce on Audit of Financial Statements
In the case when the company uses the internet to perform an electronic commerce or to realize its commercial and business activities it should consider the instructions for regarding auditing of the transactions made on the internet. The instructions are presented in the International Auditing Practice Statement 1013 – Effect of Electronic Commerce on Audit of Financial Statements. The article presents the ways of performing such an audit.
Keywords: internet commerce, IT businesses, e-business, e-commerce.
1. EK donio odluku o poboljšanju carinskih procedura
2. Iz fonda solidarnosti u dvije godine pomoć za 30.000 radnika
3. Renzi želi da Italija više ne bude zemlja visokih poreza
4. Krivotvorine koštaju modnu industriju EU-a 26 milijarda godišnje
5. Nastavak zaštitnih mjera za voće, povrće i mliječni sektor
6. Lukoil zatražio pomoć od potpredsjednika EK-a
The regulations regarding the defualut interest rates became effective on 1 August. Accordingly, as of this date the basis of the default interests is not a discount rate of the Croatian National Bank but the average interest rate on the credits granted to non-financial companies in the previous half of the year. The default interest rate will thus be changed each half of the year, except this year when it was changed on 1 August.
Autor: Dr. sc. Šime GUZIĆ , viši pred. i ovl. rač.
There is a large number of statistical research works conducted by the Croatian National Bank. The article offers a short overview of all the statistical reports necessary to prepare the statistics of the relations with foreign countries, including the contents of the specific statistical research works, the way and deadlines of reporting. This should help in preparation and delivery of the statistical reports by the persons who are obliged to submit them.
The income tax payers (crafts businesses, free professions, farmers), who determine their tax liabilities according to the collected compensation, recognize the pre-tax according to the paid invoices (the principle of the paid compensation). However, the VAT regulations determine the cases which do not apply the principle of the paid invoice. Instead, the regulations regarding the determination of the VAT liabilities in the way in which the tax payers determine their VAT liabilities according to the issued invoices are applied.
Crafts businesses and free professions, as well as other physical persons obliged to pay profit tax, may transfer their business activities into a new or the existing company. In such a transaction various accounting and taxation problems arise, which should be solved in the corresponding way. The aim of this transaction, which is called a transfer of economic entity in terms of taxation, should be considered firstly. This article presents the conditions to be fulfilled in order to make the transfer of economic entity, what should be taken into account and which events and recordings should be entered in the business records of the tax payers who make such a transfer.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
Posted workers are persons sent by their employer to another state to perform on his/her behalf business activities in the specific time period. Before sending a posted worker in another EU member country, the group of the posted workers should be registered at the Pension Insurance Fund. Thus, the workers are guaranteed the rights from the pension insurance. The EU regulations on the co-ordination of the social security should be checked, too.
The new Act on the System of Internal Control in the Public Sector became effective on 25 July 2015. Accordingly, the Act on the System of the Internal Financial Controls in the Public Sector from 2006 became invalid. The article presents an overview of the essential changes compared to the Act from 2006.
The Act on the Right to the Access to Information was mostly changed by the first Amendment, passed in August 2015. The author of the article analyzes the most important changes stated in the above Amendment referring to the persons obliged to apply the Act, the reasons for the denied access to information, the pro-active measures of exercising the right to access to information, etc.
The deadline in which the providers of the financial assets from the public resources on the national level should have complied their by-laws to the Directive on the Crteria, Measurements and Procedures of Financing and Contracting the Programs and Projects for the General Benefit to be realized by associations has expired. The article stresses the fact that this regulation applies, under certain conditions, to foundations, private institutions, religious communities and other non-profit organizations.
The entry into force of the Directive 2014/24 / EU of the European Parliament and the Council on Public Procurement has resulted in the obligation of compliance until 18 April 2016.
The Directive, among other things contains new provisions on the criteria for selection in terms of determining the ability of economic entities and the provision applied by the contracting clients. This article presents the most important news and provides an overview of the provisions of this Directive
1. Opći pregled
2. Cijene u RH i EU-u
3. Industrijska proizvodnja RH i EU-a
4. Vanjskotrgovinska razmjena
5. Trgovina na malo u RH i EU-u
6. Turizam
7. Plaće
8. Likvidnost i insolventnost