Are you ready?
EU news, February 2013
In the first issue of Deloitte Croatia EU news we are bringing to your attention an overview of information in relation to the recently published acts in tax area, as well as relevant draft bills. In addition, you may find a short insight in EU news and overview of regulations that will be necessary to implement after Croatia joins EU.
In force from 1 January 2013
- Act on Fiscalization of Cash Transaction (NN 133/12) – partly
- Regulation on Customs Tariff in 2013 (NN 135/12)
- Act on Amendments of General Tax Act (NN 136/12) – partly
- Act on Amendments of Value Added Tax Act (NN 136/12)
- Regulation on the Level of Excise Duties on Motor Fuels, Gas Oil and Kerosene (NN 137/12)
- Regulation on Amendments of Regulation on the Level of Excise Duties on Motor Fuels, Gas Oil and Kerosene (NN 144/12)
- Act on Abolition of Act on Special Tax on Luxury Goods (NN 143/12)
- Act on Amendments of Contributions Act (NN 144/12)
- Act on Amendments of Personal Income Tax (NN 144/12)
- Regulation on Amendments of Regulation on Value Added Tax (NN 146/12)
- Decision on Amendments of Decision on Local Taxes and Surtax on Personal Income Tax of City of Dubrovnik (NN 147/12)
In force during December 2012/January 2013
- Regulation on Amendments of Regulation on Corporate Income Tax (NN 146/12)
- Regulation on Fiscalization of Cash Transactions (146/12)
- Decision on Payment of State Budget Income, Obligatory Contributions and Income for Financing of Other Public Needs in 2013 (NN 2/13)
- Regulation on Conditions, Methods and Procedure on Disposal of Receivables Related to Tax Debt in the Pre-bankruptcy Settlement (NN 3/13)
- Regulation on Amendments of the Regulation on Customs Tariff for 2013 (NN 3/13)
- Decision on Publishing of the Regulations on State Incentives for Shipbuilding Industry (NN 3/13)
- Decision on Amendments of Decision on Local Taxes in the Municipality of Žminj (NN 9/13)
- Regulation on Amendments of the Regulation on the Enforcement of the Customs Act (NN 10/13)
- Regulation on the Movement of Excise Goods under Suspension of Excise Duty System by Application of the E-document (NN 138/12)
Public discussion on the Value Added Tax Bill
Draft Value Added Tax Bill, introducing value added tax rules in the form in which these apply in the European Union member states, has been published on the official site of the Ministry of Finance.
The mentioned Bill is opened to public for discussion in the period between 24 January and 7 February 2013, in which respect the interested parties may react/impact the final version by expressing their opinions, comments and suggestions in written form.
If you need our assistance in participation in the public discussion or would like us to submit your opinion, comments and suggestions in our name, please contact us
We also provide professional services and assistance in relation to estimation of effects of the Bill on your business processes.
Excise Duties Bill
Excise Duties Bill that further harmonizes Croatian excise duties system with the European excise legislation is in the legislative procedure before the Croatian Parliament.
This Act should be passed in summary procedure and will come in force on the date of Croatia's accession to the EU.
Please feel free to contact us should you require details about the new excise system.
Draft Changes and Amendments of Personal Income Tax Act Regulations
On web pages of the Tax Authority Draft on changes and amendments of Personal Income Tax Act Regulations has been published (the „Regulations“). It is anticipated that the new Regulations will be in force from 1st April 2013.
The Regulations is prescribing the following:
- Resident taxpayer receiving income directly from abroad, which is taxable abroad in accordance with the provisions of respective double tax treaty, is not obliged to make advance tax payments based on the same income in Croatia. The person is obliged to file annual tax return and to inform the Tax Authority that he/she will not make advance tax payment in Croatia.
- Resident, assigned employee, is not obliged to make advance tax payments in Croatia on employment income received from domestic company (employer), providing that the income is subject to tax in a host country in accordance with the provisions of relevant double tax treaty. Assignee is obliged to file annual tax return.
- Resident receiving pension directly from abroad in equal monthly instalments is allowed to file a request to the Tax Authority in order to make equal advance tax payments based on the Assessment issued by the Tax Authority.
- Content, elements and submission of the new unique JOPPD form is prescribed in more details.
- JOPPD form is also published on web pages of the Tax Authority.
- Presidency of the Council of the European Union has been handed over from Cyprus to Ireland on 1 January 2013
- Europen Parliament and the Council of the European Union have reached an informal agreement on further steps related to reform of the Cohesion Policy for the period from 2014 to 2020
- European institutions have approved the creation of the unitary patent in December which will provide legal protection for inventors across Europe
New EU legislation
- The Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (called „Fiscal Agreement’’)
- Directive on Administrative Cooperation in the Field of Taxation – will enhance the cooperation between the tax authorities of all member states, in order to prevent tax evasion
- Directive on the Calculation of VAT
- The goal is to encourage the issuance of electronic invoices and their equalization with paper invoices - member states are prohibited to request the issuance of electronic invoices using electronic signatures or their subsequent storage in paper format
- Member states are allowed to prescribe payment of VAT according to received fees, and not according to invoices issued, for small enterprises with annual turnover of less than € 2 million
Process of ratification of Accession Agreement between Croatia and the EU
- Member states that have completed the ratification process: Austria, Bulgaria, Cyprus, Czech Republic, Estonia, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg (2013), Hungary, Malta, Portugal, Romania, Slovakia, Spain (2013), Sweden (2013), Netherlands (2013)
- Member states that have begun the process of ratification: Belgium, Finland, France, Poland, United Kingdom
- Member states that have not yet begun the process of ratification: Denmark, Germany, Slovenia