Računovodstvo, revizija i financije 3/2020

The article analyses the legal framework of determination and use of profit and loss coverage in accordance with the provisions of the Companies Act. It also provides the explanations regarding the accounting for profit distribution and loss coverage. In addition, the article presents the taxation viewpoint of the profit withdrawn in advance during 2019, including the payment of the profits made in 2019 and earlier.

Middle-sized and large entrepreneurs are obliged to draw up the annual report and the management report. The preparation of the annual report is determined in the Par. 21. of the Accounting Act, which regulates the obligatory contents of the annual report and the management report, but not their form. The obligation of drawing up the annual report is stated in the Par. 250a, 250 b and 431 b of the Companies Act.

Until 30 April 2020 all the entrepreneurs, who are profit tax payers, are obliged to submit to FINA their annual financial reports for statistical needs in the GFI-POD Form for 2019.  The preparation of the annual financial reports for statistical needs always implies the calendar year, i.e. the presentation of the data for the period from 1 January till 31 December 2019, This is especially important for the enterprises whose business year is different from the calendar year. Besides the balance sheet, the profit and loss account and the statement of other comprehensive income for the entrepreneurs who apply the IFRS, the additional data which refer to explanations of specific entries from the balance sheet and P&L are to be submitted to FINA for statistical needs. FINA determines the form and format of the annual financial reports for statistical needs and for public disclosure.

According to the Accounting Act, the deadline for submission of annual financial reports for statistical and other purposes is April 30, 2020, while the deadline for the submission of annual financial reports for public disclosure and other determined documentation is six months since the end of the business year. In view of the public disclosure, annual financial reports and other necessary documentation are to be submitted to the Register of Annual Financial Reports kept by FINA. For the purpose of public disclosure, an enterprise representing a parent company in the group of enterprises is obliged to submit consolidated annual financial reports and other documentation within nine months since the end of the business year. If in 2019 the entrepreneur filed for liquidation, bankruptcy or status changes, the annual financial reports are to be submitted to FINA within ninety days from the date of occurrence of the status change, the start-up of liquidation or the filing for bankruptcy. For the purposes of statistics and public disclosure, the form and format of the annual financial reports are determined by FINA.

Deferred taxes arise due to temporary differences between the accounting and the taxable profits. Such temporary differences are the consequence of recognition of income or expenditure in different periods for accounting and taxation purposes. Deferred tax assets and deferred tax liabilities are realised in the following tax periods, when certain conditions have been fulfilled. This article presents the most common business events which may result in recording of deferred tax assets or deferred tax liabilities.

In this article, the author discusses the requirements set by IFRS 16 - Leases in situations of change in a lease. The author writes about the requirements when the terms of the lease agreement change and gives practical examples: modifying a lease which is a separate lease, modifying a lease which is not a separate lease (reducing the scope and reducing the lease fee), and reducing the duration of the lease.

The article also presents the tax aspect of temporary differences arising from the provision of the Ordinance on Income Tax in Art. 22. (15) and examples of posting deferred tax assets.

The authors of this article summarize the important and frequently occurring issues related to the accounting and taxation framework of the regular (so-called) classic liquidation of limited liability companies, as well as the important status and legal issues of such an institute, from the entry of liquidation in the court register, until the deletion of the company in liquidation from the register.

Utility companies and public water supply providers are specific because in most of their business, they need to adhere to the principle of not-for-profit (utility companies) or to apply regulatory accounting (public water supply provider). This means that the goal of their business is not to make a profit, but to provide services at prices which will cover costs but will not generate profits. However, while a utility company may, in addition to the utility activity entrusted to it, also carry out an economic activity for the purpose of making a profit, the public water supply provider is not permitted to do so. A utility company owned by the unit of local self-government and, in addition to the utility activity, also performs an economic or public interest activity, should account for the business events for each activity separately.

This issue offers the replies to the concrete practical questions in the fields of VAT, accounting for business events, fiscalisation and labour relations.

Off-setting as one way of ending the commitment is not hindered in the budget system. In such a case it should be taken into account whether it is related to accrued income because it is considered as collected. Although in the circumstances when the institution will cease to exist, the local unit will, in principle, recover its assets as if it were a financial asset, the founding expenses of the local unit would be considered expenditures rather than expenses for the acquisition of financial assets. debited on the account of financial assets.

In non-profit accounting it is not defined how to record the replacement of things. The author of the article states that accounts receivable and payable should not be used for this business event. However, often an agreed replacement is considered to be the same as a sales contract and therefore accounts receivable and payable are used. The collection of trade receivables through a credit card company should not affect the recording of sales revenue, regardless of the fact that the credit card company "offsets" the cash flow when transferring funds to its customer.

Due to the specific way of their operations, non-profit organisations have to send their employees and associates on a business trip. Unlike entrepreneurs who can reimburse tax-exempt travel expenses only for their employees, non-profit organizations can, under certain conditions, also reimburse non-taxable expenses to their associates.

All retired persons, except those who receive a family pension or are retired due to their total incapacity to work, may start an employment relationship and work up to half of their full-time employment without suspending their payment of a pension. In this case, they obtain the status of an employee insured on the basis of employment, using all the rights as other employees. The lowest salary that a retired person can contract with an employer is a minimum wage determined in proportion to working hours, which is also the basis for payment of all contributions. The exception is a retired employee who is a company board member, executive director, liquidator, listed in the Commercial Court Registry, and cooperative managers for which the minimum contribution base and the special marking when submitting information in the JOPPD form should be taken into account. There is no limit of the salary amount.

Payments of insurance premiums can be a motivating factor for long-term employee rewards, as they are one of the cheapest ways of rewarding workers. Such an instrument may motivate all employees or a certain group of employees and, thus, can reduce employee turnover.

The premiums of the third pillar of voluntary pension insurance can be paid by a natural person- citizen, but it can also be paid by an employer for its worker. Under certain conditions, the amount of HRK 6,000.00 or HRK 500.00 per month can be paid annually, with no obligation to pay taxes. However, there are different ways of dealing with payment of premiums on this basis. As of January 1, 2020, employers can pay their workers tax-free premiums for supplementary and additional health insurance, which are two forms of voluntary health insurance regulated by a separate law.

Diplomatic missions of foreign countries in the Republic of Croatia have a different status as an employer regarding the calculation and payment of compulsory contributions to income tax and surtax from salaries and on salaries of their employees. Contributions from salaries and on salaries to employees are obliged to be calculated and paid in the same way as performed by other employers, and the tax on income from salaries is obliged to be calculated by the employees themselves. Exceptionally, the diplomatic mission office may also assume the obligation to calculate and pay taxes and surtaxes. The employer and the employees are obliged to report on the calculated contributions, tax and surtax to the Tax Administration via the JOPPD form, with special tables for them.

Regarding the reverse charge of tax liabilities for construction services, most dilemmas arise when such services are provided within the provision of maintenance of construction buildings. The reason lies in the fact that neither the VAT Act nor the VAT Rulebook defines all the services and situations which may occur in practice. The Ministry of Finance has so far issued a number of explanations covering the above stated issues.

The author of the article presents the application of the reverse charge of tax liabilities for constructions services which are provided within maintenance.

This article explains the procedure for VAT refunding to foreign citizens - natural persons from third countries, or from third areas, and the application of the new VAT-P form, which has been applied since 1 January 2020. One of the important conditions for the possibility of VAT refund for these persons is that the value of purchased goods in one account should be higher than HRK 740,00  including VAT, and they can receive the refund directly from the seller, or in a retail store where the goods were purchased, or through an intermediary. The seller can thus reduce the tax liability for the VAT refund to the natural person. Besides the application of the new form, the novelty is that VAT refunds can also be obtained for goods for equipping and supplying any means of transport used for private purposes.

Project implementation reports are submitted to the competent ministry, depending on which category the entrepreneurs are classified in, and to the Ministry of Finance - Tax Administration, including the submission of the PD form. Beneficiaries of state subsidies for investment are obliged to submit written reports on the realisation of the investment project, the acceptable expenses, the use of incentive measures, and the preservation of the objects of the investment as well as the vacancies associated with such an investment during the periods in which they have the status of beneficiaries of the subsidy.

Today, there is an increasing debate about new income tax measures, the basis of which is laid out in the 2015 BEPS Measure 1 final report. A consensus is expected by the end of the year on guidelines for taxing the digital economy on the global level. EU Member States are expected to adopt legal acts governing this area.

Council Directive 2006/112 / EC, or the Sixth Directive, lays down a special taxation procedure for travel agencies which aims to simplify the VAT rules applicable to travel agents and to ensure a fair distribution of VAT revenue among the Member States of the European Union. Specifically, simplification for travel agents is determined, because the application of general rules on the place of taxation, the tax base and the deduction of prepayment, due to the number and location of the services provided, would cause practical difficulties for those taxpayers. By applying a special taxation procedure, travel agents do not subject to VAT registrations in EU Member States where they provide individual services which constitute a single travel organization service, and because of taxation, travel agents do not use deduction of pre-tax on their margin.

The International Accounting Standards Board's Working Group, appointed to prepare the Amendments to the IASB's Standard Management Comments, published in December 2019 the full text of the amended standard. The goal of the management comment is to provide the information required to the primary users of the financial statements, which should be relevant to their assessment of future cash flows and managing the company resources.

The IFRS Interpretation Committee (hereinafter referred to as IFRIC) has received a request for interpretation of IFRS 15 - Revenue accrued on a contract with customers, which relates to the costs of training a company’s employees accrued upon completing a contract with a customer. The Board concluded that the principles and requirements set out in IFRS 15 and IAS 38 provide the appropriate basis for a company to determine the method of accounting for the training costs of its employees which have incurred in executing a contract with a customer.

A review of 500 online stores selling clothing, footwear, furniture, household goods and electrical appliances has shown that two-thirds of them do not comply with the fundamental rights of EU consumers. Austria reduces income tax rates from 25, 35 and 42% to 20, 30 and 40%.

France gives up collecting digital service taxes to discourage US from raising customs duties on French goods. The European Commission has been prosecuting infringements of EU rules against 14 member states which have failed to implement Directive 2018/1910 so far to harmonize and simplify certain rules of the VAT system for taxing trade among the EU member states.

Internet sales in the Republic of Croatia are governed by the Commerce Act, the Act on Electronic Trade and the Consumer Protection Act. According to the Act on Electronic Trade the internet sales of goods and services is considered to be the service of an information society. These are services that are provided electronically for a fee at the individual request of the user.

The Commerce Act determines and defines sales as an economic activity of buying and selling goods and / or providing services in commerce for the purpose of profit or other economic effect. The sales are performed as a wholesale as a retail sale. One of the forms of retail is online sales. According to the above stated Act, a seller is a legal or natural person registered for the purchase and sale of goods and / or the provision of services in a store.

The case of calculation of the cost of transportation and the disposal of municipal waste was discussed at the Constitutional Court. The disputed part is the fixed fee that a polluter has to pay regardless of how much waste the polluter produces. This issue should not be controversial, but it is. Namely, the municipal waste management system has its technical and technological task for a certain area and this service is accessible to all. If one does not “deliver” the waste within a certain period of time, regardless of the fact that it is disposed of in certain terms from other citizens and legal entities, the fixed cost is incurred. The recognition of the fixed cost in the calculation of water services has even been approved by the European Court of Justice. Perhaps this is the direction to solve the problem.

This article discusses the acceptability of a fixed fee in the calculation of the cost of municipal waste disposal.

The Amendments to the Fiscalisation Act, effective January 1, 2019, allow for the issuance of supporting documents stating payment information and the note "THIS IS NOT A FISCALIZED INVOICE". However, the procedures for monitoring the implementation of fiscalisation have identified the abuse of such documents whereby customers would be issued invoices with the above stated note, but no delivery invoice would be issued which would be fiscalized subsequently. As the supporting documents are not accounting documents, the turnover generated in this way was not recorded. In order to prevent such activities, the Amendments to the Fiscalisation Act, which will enter into force on 1 April 2020, stipulate the obligation to fiscalize the supporting documents charged for funds considered as cash if the delivery of the product, or the provision of services is complete or in accordance with such documents or if it is certain that this will occur. Issuing supporting documents is not a legal obligation, but if the taxpayer decides to issue them, he/she should notify the Tax Administration (updating information on business premises) and fiscalize them.

The Collective Agreement in Catering Industry was terminated at the end of 2019 due to the fact that it was signed for the fixed period of time. On 1 January 2020 the new Collective Agreement became effective, which is binding for its signatories only. The application of the new collective agreement is expected to comprise all the persons who are engaged in provision of catering services.

The article presents the comparison of the old and the new collective agreements in the catering industry. The article specifically stresses the provisions which are important in terms of finances.

This article presents the issues related to the position of liquidators in view of labour law as well as those related to the position of their insurance. Namely, liquidators who are not necessarily insured on any basis should be self-insured this year. In order to pay less contributions, they get employed.  The employed liquidators as well as those included in the compulsory insurance system (insured on another basis), should settle contributions on the prescribed monthly basis, due to liquidation.

In this article, the author looks at the institute of assignment in an interesting and detailed way the way it is regulated by regulation, providing an overview of the most important practical issues that arise with regard to assignment. The author also states the corresponding examples and opinions from the court practice, certain exemplary examples of assignment forms, as well as examples for its better understanding.

Many non-profit organisations receive subsidies from the European Union. Due to the fact that the system of recording such subsidies is not clearly defined, a number of issues arise in business practice. The article presents the way of recording such subsidies and their managing.

According to a special act governing the provision of services in tourism, certain services in tourism may under certain conditions also be provided by public institutions managing protected areas as well as other public institutions within their core activity in accordance with the their ordinance on establishment and the statute of the public institution, including health institutions in in accordance with special regulations governing health care, cultural institutions, trade unions, associations, schools, colleges and other educational institutions for the purpose of carrying out their activities, i.e. fulfilling their goals, Such activities may also be performed by the church or a religious community.

The article stresses the examples of mistakes made by tourist inspectors in supervising non-profit organizations.

1. Opći pregled
2. Cijene stambenih nekretnina u RH i EU-u
3. Industrijska proizvodnja RH i EU-a
4. Potrošačke cijene u RH i EU-u
5. Proizvođačke cijene industrije RH i EU-a
6. Građevinarstvo RH i EU-a
7. Vanjskotrgovinska razmjena
8. Trgovina na malo u RH i EU-u
9. Turizam
10. Prosječne mjesečne neto i bruto-plaće zaposlenih
11. Likvidnost i insolventnost