Mazars Tax Newsletter, June 2020

REPUBLIC OF CROATIA 

Tax Reform

Amendments to the Rulebook on fiscalization in cash transactions

In the Offical Gazzette nr. 70/20  the Rulebook on amendments to the Rulebook on fiscalization in cash transactions has been published, which contains amendments related to:

• the method of generation and the mandatory data contained in the QR code;
• fiscalization of sales through self-service devices;
• instructions on control of invoices issued through the Tax Authorities’ service;
• submission of data on the accompanying document; and
• method of testing electronic payment collection systems and invoice elements.

In relation to the implementation of the process of fiscalization of sales through self-service devices, the Rulebook prescribes the definition of a self-service device and it is prescribed that each self-service device is considered as specific business premises. Also, the procedure for assigning identifiers by the Tax Authorities and the implementation of the fiscalization itself is regulated in more detail, as well as the appearance and content of the notification on the fiscalization of sales through self-service devices.

Taxpayers who carry out the procedure of fiscalization of sales through self-service devices are obliged to submit data to the fiscalization system for each existing self-service device and display a notice in this regards on each self-service device from the date of entry into force of the Rulebook until 31 January 2021.

In relation to the obligation to fiscalize the accompanying documents, it primarily refers to the taxpayers who, for any business reason, before issuing an invoice, issue a document stating the data for payment. Fiscalization of such documents is carried out under the condition that the accompanying document contains payment information (for example, the expressed price of the service or product) and the prescribed note, with information on when the dispatch of the product or service has begun or is likely to occur.

Amendments to the Rulebook prescribe the mandatory content of such supporting documents as follows: the taxpayer's PIN, the number of the accompanying document, JIR, date and time of issue, security code of fiscalization and the total amount stated on the supporting document. Among other things, each accompanying document must clearly state "THIS IS NOT A FISCALIZED INVOICE".

The Rulebook also regulates the protocol and model for the exchange of information on the accompanying document, standard error messages and protocols for dealing with errors. 

Opinions of the Tax Authority

Corporate Income Tax return for 2019 - Instruction

The Tax Authorities has published Instructions on preparation and submitting of the corporate income tax return and calculating corporate income tax for 2019, thus amending the previous instructions. The instruction is harmonized with changes in relevant regulations and extraordinary circumstances that occurred due to the coronavirus pandemic. Furthermore, the instruction includes more detailed explanations of the postponement of the deadline for filing the corporate income tax return for 2019 due to special circumstances and shortened deadlines in case of statutory changes, bankruptcy and closing of operations.

More about this, but also Jurisprudence: Decision of the Constitutional Court regarding the reasonable duration of proceedings, followed by Mazars' comment, but also News from the European Union: Deferral of the application of new EU tax measures in Mazars Newsletter below!