In the last issue of the RRiF Journal the first part of the article presented the cost issues regarding the stocks of raw materials and material and the labour costs which arise in the process of production. This article presents the distribution of the costs on the items which bear the costs (products).
A large part of the accounting for production applies the models used in the managerial accounting, even the part which is introduced in the financial accounting. Therefore, it is recommended to develop the model of managerial accounting, which would provide the corresponding information, in order to make proper decisions.
The automobiles in the assets of the enterprise are divided in the automobiles uses for personal transportation and the automobiles used for performing business activities, which are specifically stated in the VAT Act. In the case when the automobile has been purchased for personal transportation and the VAT on it has been calculated, the VAT cannot be deducted as a pre-tax and is to be included in the purchase value. The purchase value includes a special tax on motor vehicles, which is paid upon the purchase of the automobile which has not previously been registered in the Republic of Croatia. If the purchase of the automobile does not subject to VAT calculation, such a purchase should be registered at the authorized Police Department office, which then determines the payment of 5% tax on the purchase of second-hand motor vehicles. Upon the purchase of the automobiles which are to be used for performing of certain business activities, such as rentals or transportation of passengers, the deduction of the pre-tax is allowed, if it has been included in the invoice.
The article presents the issues when it is necessary to make a value adjustment of receivables from buyers or to write them off and the conditions to be fulfilled in order for such a value adjustment or write-off to be recognized in terms of taxation. The first requirement is to act in accordance with the accounting standards and the second requirement is to take into consideration the tax limitations.
The article also includes certain technicalities of the recording of business events referring to value adjustment of receivables and their presentation in financial and tax reports.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
The goal of the new Accounting Act is to increase the transparency of large enterprises and the competitiveness of small and medium-sized enterprises. Accordingly, besides their regular financial reports, large enterprises should disclose other reports on non-financial information, which is specifically determined by the Directive 2014/95/EU. Such information comprise the data on the enterprise’s impact on the environment and the society, which is to be presented in the report on the social responsibility and sustainability of the enterprise. This article presents the obligation on provision of non-financial information by certain large enterprises and the groups of public interest.
Annual financial accounts are prepared on the basis of the properly prepared book-keeping records and other records, which are pre-conditions for presentatipn of their basic characteristics. Accordingly, the role of accountants is to check up the validity of the documents and the correctness of recording of all the business events during the business year. The review of the most important accounting procedures includes the taxation of the specific events and tansactions which subject to the special taxation procedure. The review of the most essential business events has been prepared according to the accounting brackets and major accounts.
Autori: Dr. sc. Tamara CIRKVENI FILIPOVIĆ , viši pred. i ovl. rač. Mr. sc. Nada DREMEL , dipl. oec., ovl. rač., ovl. rev. i porezni savjetnik Dr. sc. Šime GUZIĆ , viši pred. i ovl. rač. Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač. Dr. sc. Đurđica JURIĆ , prof. vis. šk. i ovl. rač. Zrinko TRCOVIĆ , dipl. oec. i ovl. rač.
The compensation for the development of water supply facilities is introduced according to the decision made by the units of local self-government (city or municipality) and is collected by the water supplier. The city or the municipality should enter into their business records that such a compensation has been collected. The collection of the general income by the POS appliance comprises the payment of the commission to the bank. Under such circumstances, the income has been realized for the liabilities to the bank, as well. The bank then subtracts such an amount in the form of the cash transfer on the account of the State Treasury.
Autor: Mr. sc. Nada DREMEL , dipl. oec., ovl. rač., ovl. rev. i porezni savjetnik
In the case of the subsequent valuation of long-term non-financial assets, which is turned into the financial assets of the person applying non-profit accounting, it is questionable which method should be used to record such an event in the business records and whether the revaluation reserves should be cancelled by the changed (increased) value of the assets, which become financial assets, on the account of income. According to the law it is possible to include the non-reciprocal income into the income of the reporting period and not in the period in which it was collected, if it was collected in the period which can be determined by the person applying the Act. Under certain circumstances, for such an income it is possible to record the receivables which have arisen in the accounting period in which they were not collected, whereas under other circumstances this is not possible.
Autor: Mr. sc. Nada DREMEL , dipl. oec., ovl. rač., ovl. rev. i porezni savjetnik
In the time of the forthcoming holidays the employers may award their employees with the Christmas bonus, a gift in kind, they can give gifts to their children or they may pay to the employees the thirteenth salary. The employer is not obliged to give gifts to the employees, but this represents his/her own decision, which may be determined by some of the enactments which regulate the employee’s rights. According to the tax regulations the above stated substantive rights of employees may be tax exempted up to the certain amounts.
If the employer paid salaries irregularly or in the amounts which were different in the specific months, the income tax and the sur-tax are usually overpaid due to the inability of using all the corresponding monthly personal exemptions or due to the application of the progressive taxation. Accordingly, these employers are obliged to prepare the annual account of the income tax and sur-tax upon the last salary payment in the year. The over-payment of the tax and sur-tax may also arise if the employee was not able to work due to sickness, maternity or parental leave during the tax period, when a non-taxable salary compensation was paid to them.
The aim of the annual account of income tax and sur-tax is to make a levelling of tax liabilities, i.e. the return of the overpaid tax or the payment of the less paid tax and sur-tax, without the submission of the tax return.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec., ovl. rač. i ovl. rev.
The students who attend crafts secondary schools and other vocational schools are obliged to perform their practical training in a crafts business or with a certain legal person. After such a training, the crafts business or the legal person are obliged to pay them a certain amount of compensation. According to the corresponding tax regulations a non-taxable amount may be paid to the students performing practical training. The payment of the higher amount than the non-taxable one represents other income.
Autor: Anamarija Miletić , dipl. oec., ACCA i ovl. rev.
Investment in fixed assets, the depreciation of which is recognized to the full amount, is a condition for recognition of the tax relief for the re-investment of the profit in 2015. Besides, the additional condition for recognition of the tax relief for the re-investment is valid in this year – keeping the same number of employees for another two years. According to the viewpoint of the Tax Administration the investment into automobiles, whose depreciation and expenses are recognized to the total amount due to the fact that the salary is calculated for their use but are also used for transportation of entrepreneurs and employees, cannot be recognized as the investment for realization of the re-investment.
Autor: Dr. sc. Đurđica JURIĆ , prof. vis. šk. i ovl. rač.
Due to the fact that the final VAT account is no longer submitted in the PDV-K Form, the corrections of errors, the corrections of pre-tax, adjustments and other liabilities should be recorded in the last accounting period in December 2015. Such data should be recorded in the VAT Form for December 2015, which should be submitted until 20 January 2016, at the latest.
According to the VAT Act, all enterprises may be VAT payers, comprising companies, crafts businesses – income or profit makers, budget beneficiaries and non-profit organizations. However, this does not mean that all the enterprises are VAT payers. Before eneteringthe VAT system enterprises should fulfil the basic criteria. The threshold amount for entering the VAT system in 2014 was HRK 230,000.00. If an enterprise made a taxable turnover, it should enter the VAT system and apply the VAT regulations. One of the obligations is fill in the VAT Form for the laste taxation period of the calendar year.
The end of the business year is the period when enterprises often make a decision on the change of the tax status in view of entering or leaving the VAT system. However, the decision on the transfer from the income maker to the profit maker and vice versa can only be made at the end of the year by those enterprises which have fulfilled the conditions stated in the Profit Tax Act or at the beginning of their operations.
The statement on the change of the tax status for 2016 should be delivered to the authorized office of the Tax Administration until the end of 2015. The procedure is applied as from 1 January 2016 for the period of three years. However, in 2016 both, income makers and profit makers whose delivery of goods and services in 2015 did not exceed the amount of HRK 3,000,000.00 without VAT, may choose to determine the VAT liabilities and the right to pre-tax recognition according to the cash principle, i.e. paid and collected invoices.
Management board members, executive directors and managers of co-operatives, who are not insured on any basis, are obliged to insure themselves personally. The contributions for mandatory insurances are to be paid according to the ruling of the Tax Administration. The contributions for such mandatory insurances do not represent the expenses of the company.
The Rulebook on Binding Opinions, Correction of Application, Statistical Reports and Tax Settlement has been applied since 25 July 2015. Its goal is the equal, correct and efficient application of the regulations under the authority of the Tax Administration, encouraging tax payers to voluntarily settle their newly determined tax liabilities in tax inspection, the reduction of the administrative burden of tax inspection and the avoidance of the long-lasting administrative and court proceedings.
Only in the case when the tax inspection determined new tax liabilities and default interest through estimates, such tax liabilities and default interest for the period from the date when they arose until the date of the completion of the tax settlement, may be reduced by the maximum 5%. Depending on the determined amount and the payment deadline, the rest amount of the newly determined liabilities reduced by 5% subject to the provisions on the reduction of default interest.
Autor: Mr. sc. Mirjana MAHOVIĆ KOMLJENOVIĆ, dipl. oec.
A tax authority appoints ex officio a tax representative to the tax payer whose place of residence, or headquarters are unknown, or to the unknown owner of the property which is subject to the corresponding taxation procedure. In the case of the tax payers who are not capable of working and do not have a legal representative, the tax authority makes a claim to the competent municipality court to appoint a tax representative ex officio. The amount of the award to the tax representative ex officio for the performed activities at tax authorities is determined in points according to the Tariffs of the Rulebook on the Amount of Award and Compensation of Expenses to the Representatives appointed ex officio, approved by the Minister of Finances. According to the author’s opinion the amounts of the compensation and award to the representatives appointed ex officio are to low and should be doubled or tripled.
Izvori za raspravu o ovom tumačenje uređuju: MRS 16 - Nekretnine, postrojenja i oprema, MRS 38 - Nematerijalna imovina i IFRIC 12 - Ugovori o koncesiji za usluge – Različita plaćanja za kupljenu i plaćenu imovinu koncesora koncesionaru prema ugovoru o koncesiji usluga (Agenda Papers 6-6c).
1. Varijabilna plaćanja imovina ili rashod razdoblja
2. Prethodne rasprave
1. EK predlaže nezavisni Europski fiskalni odbor
2. Unutar EU-a priznavat će se službeni dokumenti
3. Iz EIF-a osigurano više od milijardu eura za male poduzetnike
4. Šest država na sudu zbog neprihvaćanja direktive o spašavanju banaka
5. Za promicanje europske poljoprivrede 2016. godine 111 milijuna eura
6. EK povećao procjenu rasta hrvatskoga gospodarstva na 1,1 %
7. EK: Starbucks i Fiat moraju vratiti nepropisne porezne olakšice
The Amendments to the Rulebook on Waste Disposal, which become effective on 4 December 2015, have introduced the changes that mostly refer to the conditions for performing the retail sales activities of waste. Accordingly, a retail seller of waste may use the Statement on Waste Ownership or any other document which contains all the information stated in the Statement on Waste Ownership. The retail seller of waste is obliged to keep the Statement on Waste Ownership or any other document used to confirm the ownership of waste for three years since the date of the taking over the waste stated in the Statement or the corresponding document. All the payments in the waste retail sales should be made on the giro-account or the current account, which means that the cash payment up to HRK 100.00 per transaction has been cancelled. The retail seller of waste should display the notice which contains the determined elements on a visible place.
The authors of the article present certain issues regarding a personal bankruptcy, which are important for the court practice. The personal bankruptcy is determined by the Act on Consumer’s Bankruptcy, which becomes effective on 1 January 2016. This Act defines the general regulations on consumers’ bankruptcy, the off-court proceedings with councellors, the pre-conditions for filing for a bankruptcy procedure of consumers, the court proceedings as well as the presumptions and the effects of relieving the consumer of other liabilities with the aim to relieve the debtor (consumer) from the obligations which remain after turning his/her assets into cash and distributing the collected funds to his/her creditors.
Autori: Jasna VUK, dipl. oec. Ante VIDOVIĆ, dipl. iur.
Foreign currency residents should under certain circumstances inform the Croatian National Bank on credit and deposit operations. Due to the complexity of determination of the obligation of reporting for each person and for each specific situation a large number of issues regarding such reporting arise, such as: the change of the creditor’s residence, the change of the foreign currency clause determined in the contract on credit, capitalization of interests, re-programming of credit.
Crafts businesses, free professions and other independent activities performed by physical persons are principally obliged to pay income tax. They may decide to pay profit tax, instead of income tax. In the case when they exceed certain criteria determined by the Profit Tax Act, they are obliged to pay profit tax instead of income tax. Regardless of the reason for the changed way of taxation – voluntarily of obligatory – such a change is to be made at the beginning of the taxation period (calendar year). The transfer from the income taxation to the profit taxation requires the change of the principle of determination of the business result from the cash principle to the accounting principle, including the way of keeping the business records, which requires the preparation of the start-up balance sheet and the correction of the profit at the end of the first year within the system of profit taxation.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec., ovl. rač. i ovl. rev.
The realized turnover during the year is the key element for entering the register of VAT payers in the following year, if the tax payer did not enter the VAT system voluntarily during the year. The criterion for entry into the VAT system at the end of the year is the value of the delivery of goods and services in the previous year to the amount higher than HRK 230,000.00. However, certain enterprises will use the possibility of leaving the VAT system due to the threshold amount of the turnover. In such a case they should take into consideration the tax consequences, especially the obligation to correct the pre-tax for the purchased goods in the previous tax periods in which such a pre-tax was used.
The activity of retail sales, besides some exceptions, cannot start operating before the authorized office has issued the ruling that the sales facility, the equipment and other items used for sales fulfil the minimum technical conditions and other determined conditions. The sales person is obliged to ensure for the sales facility, the equipment and other items used for sales fulfil the minimum technical conditions and other determined conditions. The ruling on the fulfilled minimum technical conditions and other determined conditions is not required in the case when the sales activities are performed outside the sales facility upon some events, fairs, festivals, and alike.
The retail sales of goods outside stores may be organized only in the public areas, which have been offered for such a purpose according to the decisions made by municipalities and cities, but also at some other places if the representative body of a certain municipality/city has approved of it.
The author of the article analyzes some relevant issues regarding the decision-making on counselling with the Employees’ Council, calculation of salaries, compensation of salaries and severance payments, enforceable documents and calculation of the statute of limitations, all from the viewpoints of the recent practice of the Supreme Court of the Republic of Croatia and the Municipality Court in Osijek, stressing the fact that the court practice applies the new labour Act, which became effective a year ago.
The author of the article presents some relevant issues regarding the institute of the publicly promised prize, which is determined by the Act on Obligations. Accordingly, the person who promised the prize is obliged to fulfil such a promise to the person who has performed a certain activity, who has achieved some positive results or who has fulfilled some other condition stated in the public announcement of the promise to give the prize. Besides, the person who promised the prize is obliged to set the deadline for participation in the competition. If this has not been made, anyone who wishes to participate in the competition has the right to claim for the determination of the deadline at court.