Računovodstvo, revizija i financije

Računovodstvo, revizija i financije



rrif - 10.2019, str. 13

Expenses for Food and Accommodation of Workers

rrif - 10.2019, str. 17

      As of 1 September 2019 employers may pay to their workers new non-taxable income. The possibility of compensation of expenses for food and accommodation is not limited to seasonal workers only, but it can be paid to all the workers regardless of the type of contract on employment they have signed with the employer. The article presents the possible ways of compensating for such expenses. The authors of the article explain the treatment with new non-taxable income of workers from the viewpoint of income tax, accounting and value added tax.

Accounting for Company’s Inventories

rrif - 10.2019, str. 29

      Inventories are recorded and calculated as expenses according to the corresponding accounting standards, depending on which standards are applied by the specific company. The author of the article analyses the issue of recording the purchased inventories, the change of the inventory value and the methods of cost accounting of inventories in company’s accounting.

Accounting for Vegetable Growing

rrif - 10.2019, str. 37

      In view of accounting, vegetable growing represents an investment into short-term biological assets due to the fact that such a production principally lasts for less than 12 months. The goal of investment in such a type of production is the realisation of economic benefits through the sales of agricultural products (tomato, cabbage, potato, onion, paprika, kale, various leguminous plants, etc.). The author of the article explains the accounting for vegetable growing in accordance with the requirements of the accounting standards, i.e. CFRS 17 and IAS 41 and presents the example of calculation and accounting for the costs of investment into vegetable production and determination of the value of vegetables.

Accounting for Capital Reserves in Limited Liability Company

rrif - 10.2019, str. 41

      According to the Companies Act, capital reserves represent a company’s own source of financing which is the result of the additional cash payments made by the company’s members, in order to ensure the company’s solvency, i.e. to enable the realisation of the planned development endeavours.
      Capital reserves are not created from the realised income of the company but from the cash investments into the company. The decisions on whether such payments should be made as a loan or as capital reserves are important due to a number of facts. Withdrawal of assets is a reverse process which reduces the capital. Accordingly, the protection of creditors should be taken into consideration.

Financial Leasing per Collected Payments

rrif - 10.2019, str. 47

      Under certain conditions, companies may pay VAT per collected and not per issued invoices, i.e. they may apply the taxation procedure per collected payments. However, they may deduct a pre-tax after having paid the received invoice. In the case of financial leasing of cars used for personal transportation the deduction of 50% pre-tax is allowed per received invoice, but only in the amount of the paid invoice. 

Accounting for Rented Vehicles (rent-a-car)

rrif - 10.2019, str. 49

      The conditions for performing the activities of vehicle rentals are determined by the Act on Service Provision in Tourism. The vehicles purchased for performance of such activities have a more favourable tax position compared to the vehicles used for personal transportation, which means that upon purchase of such vehicles the pre-tax is deducted to the total amount and all the expenses for using it are recognized to the total amount, too. Upon issuing the invoice for vehicle rental, the tax position of the rendered service is affected by the duration of the rental, the place of disposal and the person to whom the vehicle is placed on disposal.

Current Issues in Practice

rrif - 10.2019, str. 56

      The article presents a few pieces of advice referring to the application of accounting rules, including recording of business events, VAT payment, the application of regulations on focalisation, labour relations, non-taxable income, transferable problems of calculation of daily allowances and other issues which appear in the practice of tax payers.

Subsidies and Investments

rrif - 10.2019, str. 62

      A unit of local self-government may provide a subsidy to another unit of local self-government, If the subsidy is provided within the general budget, it should be clear whether such a subsidy is current or capital and it is to be recorded on the cash flow principle. Upon the investment into other person’s property, it is important whether such an investment is defined as property and whether it can be written off during the period of its use.

Pre-payments and Borrowing

rrif - 10.2019, str. 63

      A non-profit organisation may make a pre-payment for the purchase of long-term non-financial assets. The way of recording such a pre-payment is not specifically determined by the law, i.e. it is not defined whether such a pre-payment for the purchase of long-term non-financial assets has the same feature as the assets for which the pre-payment has been made or whether it can be recorded as financial assets. If a non-profit organisation does not have enough assets for its operations, it can borrow the assets from its member. The received loan is principally not restricted by any legally determined limitations, but by the internal by-laws of the organisation.

Business Trip and New Amount of Daily Allowance in Croatia

rrif - 10.2019, str. 65

      The new Rulebook on Amendments to the Rulebook on Income Tax changed the amount of daily subsistence allowance that can be paid non-taxable to workers during their business trip in the country. According to the above stated change, the daily allowance for a business trip is no longer HRK 170,00 but  HRK 200,00 for more than 12 hours spent on a business trip. The aforementioned change of the daily subsistence allowance relates to days of business trip that occurred after 1. 9. 2019.

Application of Lowest Contribution Base for Workers

rrif - 10.2019, str. 75

      In employers' business practices, situations sometimes occur when workers are registered for compulsory insurance with their employer, but due to some circumstances, their gross wage / allowance is less than the lowest contribution base. In these situations, the obligation to calculate the contribution on a minimum basis is determined.

Employment of Persons without Previous Work Experience and Persons below 30

rrif - 10.2019, str. 83

      The Government of the Republic of Croatia has adopted active employment policy measures, through mediation of the Croatian Employment Service, with the support to entrepreneurs operating for profit if they hire an unemployed person from the register of unemployed persons included in the employment promotion programme. The provisions of the Contribution Act also support employment in the way that employers are exempted from paying contributions on the salaries of persons entering the labour market for the first time by concluding their first employment contract, with evidence from the Croatian Pension Insurance Institute that they do not have a registered employment record. They are equally exempt from paying contributions on a salary of 5 years if they employ a person who, at the time of concluding a permanent employment contract, has not reached the age of 30. Upon application it should be noted that the newly employed person is below 30 years of age.

Limitation of Base for Contribution Paid for Pension Insurance

rrif - 10.2019, str. 91

       The contribution for pension insurance is paid based on the insurance basis within the framework of generation solidarity (First Pillar) and on the basis of the individual capitalised savings (Second Pillar). Due to the fact that the pension realised on the basis of the paid contributions for the first pillar is based on the principle of solidarity among generations, it is understandably bonded to the value points determined according to the average salaries paid in the Republic of Croatia during the period of work and is limited within certain frameworks. Accordingly, the contribution bases are determined within the framework, which means that is limited to the payment on the monthly and annual levels. On the monthly basis, the contribution base is limited for the first and second pillars, whereas on the annual level the contribution base is limited to the first pillar of the pension insurance. The base on the annual level may be limited by the employer, too, if it has been determined that during the calendar year the worker has received the salaries and other income based on independent work to the amount higher than the annual base. If the base has not been limited and the employer has paid more contributions, the worker may apply for the return to the Tax Administration in the GOD-DOP Form.  

Obligation of Enterprises upon Entrance into VAT System during Year

rrif - 10.2019, str. 99

      According to the Amendments to the VAT Act, which became effective on 1 January 2019, small tax payers should enter the VAT system if they have provided goods and services to the amount higher than HRK 300,000.00. In such a case it should be considered which sales enter the delivery threshold and until when the enterprises should register in the VAT system. It should also be considered per which received invoices and since which date the pre-tax can be used. However, enterprises may enter the VAT system voluntarily during the year, regardless of whether they have reached the determined threshold or not.  

Conditions for VAT Refund to Croatian Tax Payers from other EU Member Countries

rrif - 10.2019, str. 110

      In the RRiF issue no. 9/19 the article presented the ways in which tax payers with the headquarters in the Republic of Croatia can obtain a VAT refund from other EU member countries. In order to receive a fund refund the tax payers from the Republic of Croatia should submit an application for registration of using the VAT Refund System to the authorised tax office in the Republic of Croatia. The VAT refund is received electronically, only. The author of the article explains the conditions under which the Croatian tax payers may receive the VAT refund in each of the EU member countries, the deadlines and the ways of submission of the application, including the necessary documentation.

Determination and Change of Pre-tax Paid on Income from Independent Activity

rrif - 10.2019, str. 117

      Physical persons engaged in independent activities of crafts businesses and free professions who determine their income based on the business records, are obliged to pay a monthly pre-tax on income during the year. The amount of the monthly pre-tac is determined according to the data presented in the annual tax return for the previous tax period, for which the Tax Administration does not make a ruling any more.
      However, based on the written application of the tax payer, the amount of the monthly pre-tax can be changed during the year. If the Tax Administration accepts the application in which the tax payer requires the reduction of the determined pre-tax amount, it makes the ruling on the new amount of the monthly pre-tax, starting with the application on the first day of the current month in which the application was submitted.

Right to Deduction of Pre-tax in Case of Unrealised Deliveries – Court Practice

rrif - 10.2019, str. 124

      The article presents the viewpoints of the EU Court regarding the right to deduction of pre-tax under various circumstances: when the delivery has not been realised, when the pre-tax has been deducted based on the effected pre-payment on the delivery which has not been realised due to deceptive activities by the supplier, when the pre-tax refers to the services used for the future transactions which have not been realised and when the tax payer does not have the account.  

How to Become Certified Auditor?

rrif - 10.2019, str. 130

      The Audit Act, which became effective in 2018, introduced stricter conditions for taking the audit exam. The Rulebook on Professional Training for Taking the Audit Exam, Audit Exam and the Special Qualification Exam (Official Gazette no. 59/19) determines the conditions for acquisition of the title certified auditor, which is presented in the article.

Better Information on Business Combinations

rrif - 10.2019, str. 133

      In September 2019 the IASB published the research results of the project on business combinations referring to the presentation of the information on goodwill. The research activities were performed due to the requirements of stake holders for more adequate information, non-recognition of losses from goodwill, expensive testing of reduction of goodwill, introduction of amortization of goodwill, etc.

Control Registry of Foreign Payments

rrif - 10.2019, str. 136

      The Croatian Foreign Currency System still uses control registries of foreign payments. They are kept only for certain groups of capital transactions. Some capital transfers have the characteristics of capital transactions although they are not determined as such within the legal framework. The obligatory contents of control registries are determined.  

VAT and Income Tax

rrif - 10.2019, str. 140

      The European Commission estimates that the EU member countries did not collect the amount of EUR 137 bn. of income from VAT in 2017. In Croatia, the gap amounted to 6.6 %, i.e. to the absolute amount of EUR 459 mil. Germany published the plan on reduction of tax and regulatory burdens to the small and medium-sized enterprises.

Registry of Real Owners

rrif - 10.2019, str. 141

      The way of conducting the measures of determining and checking the identity of the real owner of the legal entity is determined in the Art. 28-36 of the Act on Prevention of Money Laundering and Financing of Terrorism (Official Gazette no. 108/17 and 39/19). The procedure of registration of the real owners in the Registry of Real Owners is carried out in accordance with the Rulebook on the Registry of Real Owners. The legal entities established in the Republic of Croatia are obliged to enter the data into the Registry until 31 December 2019, including the corresponding updating. The Registry is kept by FINA on behalf of the Office for Prevention of Money Laundering. According to the above stated Act, the real owner is always a physical person, regardless of the fact whether the real owner entered in the Court Registry is a legal person. From the viewpoint of the real ownership, it can be direct or indirect ownership and the controlling position in the asset management of the legal person through other assets.

Continuation of Operations and Transfer of Ownership of Independent Craft Businesses – Income Makers

rrif - 10.2019, str. 148

      The most common way of termination of activities of a crafts business is liquidation, i.e. the permanent termination of crafts business activities, which was the topic of the article published in the RRiF issue no. 9/19, p. 143. This article presents an overview of the business events in view of taxation and accounting in the case of the transfer of ownership, i.e. the continuation of crafts business activities. The crafts business activities may be continued with the transfer of ownership or can be terminated.

Farmers Who are not Tax Payers

rrif - 10.2019, str. 159

      Farmers may pay income tax in a lump-sum or based on the business records in the same way as sole traders. They may also be registered as farmers performing their business activity without obligation to pay income tax. In such a case, they are not obliged to keep business records but some other types of records. The new Rulebook on Registry of Farmers (Official Gazette no. 62/19) and the Rulebook on Registry of Family Farms (Official Gazette no 62/19) determine the obligatory records to be kept by farmers (physical persons outside the system of taxation).

Prices of Water Supply Services

rrif - 10.2019, str. 164

      New regulations in the field of water supply services have introduced substantial changes in the field of water and utility supply services in view of the prices of such services and compensation for development. The most important change refers to the fact that the executive body of the unit of local self-government does not influence the decision on the price of water supply services. The assembly of the public provider of water supply services is authorised for making decisions on the compensation for development. Accordingly, the units of local self-government realise their interests exclusively through their participation in decision-making of the public service provider.

News for Providers of Water Supply Services

rrif - 10.2019, str. 168

      The Water Supply Services Act, which came into force in July this year, regulates, among other things, the organization of the public providers of water supply and their operations. Providers of water supply services are considered legal entities that perform the activity of water supply services (public providers of water supply services) as well as legal and physical persons who perform the activity of discharge and removal of municipal wastewater from individual drainage systems. Public providers of water supply services may no longer hold interests in other companies. General and special conditions are prescribed for the performance of this activity including the obligation to keep business records in accordance with the provisions of the Accounting Act, and the corresponding accounting regulations.

What is Controlled by Tourist Inspectors in Entities Providing Catering Services

rrif - 10.2019, str. 173

      The catering entities which prepare and serve food, drinks and beverages are divided into the following groups, restaurants, bars, catering entities and entities providing simple services. The above stated entities, the number of which is more than 30,000 in the Republic of Croatia, are divided into groups according to the way of serving and the prevailing services which they offer. The text presents what is mostly controlled by tourist inspectors in such entities. 

Records of Working Time of Mobile Workers – News in 2019-

rrif - 10.2019, str. 183

      Although they are fairly a well-known topic, working time records and related issues, are in practice still an area of interest not only to employers but also to the general public. Some specific forms of these records are also interesting, specifically the records on working time of mobile workers.
      A special regulation governing this topic, among other things, is the new Rulebook on the Transfer of Data to the Central Database of Tachograph Data and the manner of keeping records of working hours of mobile workers, which is presented in this article.

Invalid Contract due to Prohibition and Violation of Strict Norms

rrif - 10.2019, str. 188

      In this article, the author analyses in an interesting way, analyses the institutes: compulsory regulation, opposition to the contract compulsory regulation, nullity and legal work, the prohibition of which is prohibited by one party, taking into account the relevant regulations and the court practice.

Establishment of Companies in Republic of Croatia by Citizens from Third Countries

rrif - 10.2019, str. 194

      The article presents the conditions under which foreign citizens, primarily third-country citizens, set up companies in the Republic of Croatia. Foreign citizens (both European Economic Area and third-country citizens) are free to set up companies on the territory of the Republic of Croatia, under the same conditions as the Croatian citizens. The additional obligations of foreign citizens who set up companies in the Republic of Croatia arise from the regulations governing the residence and work of foreign citizens in the Republic of Croatia and depend on whether the foreign citizen who establishes a company is a resident in the Republic of Croatia and what functions he or she will establish in the company he / she establishes. A third-country citizen wishing to work (self-employed) in a company which he or she has established must conclude an employment contract and obtain a residence and work permit to, under strict conditions set out in the Act on Foreign Citizens and the Rulebook on Foreign Citizens’ Work.

Subject of Business Operations according to Amendments to Companies Act

rrif - 10.2019, str. 200

      According to the new legal regulations, the subject of business activities in a joint stock company is determined in the statute of the company, and in other companies in separate decisions that are made at the founding of the company in the manner prescribed for the conclusion of the company’s contract. The specific form of the aforementioned decisions and the obligation of notary certification of their contents are not determined.
      By submitting these decisions and lists of activities to the registration court, the companies actually inform the registration court on the business activities of the company. The Registry records the activities with the code by which the predominant activity of the company is classified according to the national classification of activities, that is, registers in the general ledger of the register those activities for which it has been determined that they can be performed only on the basis of the consent, permit or other act of the competent authority after entry in the register.

Otkaz direktoru, vođenje poslova društva, platni nalog i stečaj dužnika

rrif - 10.2019, str. 203

      Nekoliko izvadaka iz njemačke sudske prakse, koja se objavljuje u časopisu Der Betrieb, prenosimo i u naš časopis sa svrhom dobivanja uvida kako se u EU-u pravno rješavaju neke poslovne situacije. S obzirom na to da i naše pravno uređenje trgovačkih društava svoje izvorište ima u Njemačkoj, odnosno kontinentalnom pravu, usporedba rješidbi može biti od koristi za našu praksu.
      Iznesena sudska praksa može se u proširenom obliku pronaći u našem časopisu Pravo i porezi.

Gospodarska kretanja u RH i EU-u

rrif - 10.2019, str. 211

1. Opći pregled
2. Industrijska proizvodnja RH i EU-a
3. Potrošačke cijene u RH i EU-u
4. Proizvođačke cijene industrije RH i EU-a
5. Građevinarstvo RH i EU-a
6. Vanjskotrgovinska razmjena
7. Trgovina na malo u RH i EU-u
8. Turizam
9. Plaće
10. Likvidnost i insolventnost

Novi propisi

rrif - 10.2019, str. 221

Stručne informacije

rrif - 10.2019, str. 225
Hrvatski računovodstveni sustav HSFI, MRS, MSFI i Tumačenja (1)