Lecturer: Miljen Matijašević G10, room 6/I, Tue 11:30-12:30 e-mail: [email protected] Session 7, 29 Apr 2014 1. Revision questions and exercises 2. Indirect Taxation – Value Added Tax Vocabulary exercises           porez na dodanu vrijednost (PDV) porez na dohodak porez na dobit trošarine porez na promet nekretnina porez na premije automobilskog osiguranja porez na motorna vozila porez na korištenje javnih površina porez na kuće za odmor prirez      porez na potrošnju porez na nasljedstva i darove porez na tvrtku ili naziv porez na automate za zabavne igre porezi na dobitke od igara na sreću consumption tax  inheritance and gift tax  trading name tax  slot-machine tax tax on gains of the games of chance   1. 2. 3. 4. 5. Tax authorities must assess taxes with equal diligence, whether it is to the benefit or the ________ of the taxpayer. A ________ transaction usually conceals an illegal transaction. An old unpaid tax debt can become subject to the ________ of limitations. If the taxpayer fails to provide necessary information and evidence, the taxable base and ultimately the tax ________ are ________. The law imposes an obligation on tax authorities not to ________ any personal information ________ in the tax procedure. This provision shall not be ________ violated if the taxpayer has consented to the publication of such information. 1. 2. 3. 4. 5. Tax authorities must assess taxes with equal diligence, whether it is to the benefit or the DETRIMENT of the taxpayer. A SHAM transaction usually conceals an illegal transaction. An old unpaid tax debt can become subject to the STATUTE of limitations. If the taxpayer fails to provide necessary information and evidence, the taxable base and ultimately the tax LIABILITY are ESTIMATED. The law imposes an obligation on tax authorities not to DISCLOSE any personal information OBTAINED in the tax procedure. This provision shall not be DEEMED violated if the taxpayer has consented to the publication of such information. 1. 2. 3. 4. 5. 6. Porezna tijela dužna su poticati porezne obveznike da predaju porezne prijave. Trgovačka društva dužna su voditi poslovne knjige i evidencije. Povrat poreza moguć je za iznose veće od 1.000 Kn. Sud je naredio privremenu zabranu obavljanja djelatnosti. Porezni dug je otpisan budući da dužnik nema nikakve imovine. Prisilna naplata vrši se zaplijenom imovine. 1. 2. 3. 4. 5. 6. Tax authorities must encourage taxpayers to file tax returns. Companies must keep books and records. A tax refund is possible for amounts exceeding HRK 1,000. The court imposed a temporary ban of business activities. The tax debt was written off as the tax debtor owns no property. Forcible payment is carried out by seizure of property. Unit 4  Levied at each stage of the production and distribution process  Input tax deductible from the output tax ◦ INPUT TAX – pretporez ◦ OUTPUT TAX – izlazni porez 1. Individuals 2. Legal persons engaged in taxable activities  Taxpayers whose supplies equalled more than HRK 230,000 must enter the VAT system  E.g. ◦ Importers and exporters of goods ◦ Entrepreneurs receiving services from a non-resident ◦ Anyone performing business activities if non-taxation of such activities would lead to unfair competition  Taxable transactions include 1. Supply of goods and services for consideration within Croatia 2. Self-supply of goods and services 3. Importation of goods Self-supply:  ◦ use of own business services for private needs ◦ business entertainment expenses ◦ use of personal vehicles (if not deductible from personal income tax or profits for tax purposes)  Taxable transactions also include:  Supply of goods and services by legal entities for the benefit of the shareholders and members of immediate family for no consideration or with a personal discount  Any supply free of charge or at a personal discount, irrespective of who the recipient is  The sales price of goods and services supplied, including costs of transportation, insurance and packaging  For imports – customs value + customs duties and other charges and special taxes payable in the course of customs clearance  For reimported goods (exported and processed abroad) – the consideration for the processing or increase in value of the goods  The standard rate: 25 %  Reduced rates: 13 % and 5 %  Non-resident entrepreneurs engaged in taxable transactions in Croatia - subject to the same taxation rules as residents  Other non-residents (non-EU citizens) can claim a refund of VAT on goods purchased in excess of HRK 500  Deadline for the refund: 6 months from the date of invoice input tax output tax deductible legal entity taxable activity non-resident taxable person to be exempt from taxable transaction supply of goods or services consideration free of charge customs duty customs clearance processing (of goods)  Do the exercises on p. 15 in your coursebook Thank you for your attention!