EU news, March 2013
Are you ready?
In the second 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.
A provisional schedule for announcing tenders for IPARD - Component V of the IPA has been published on the website of The Paying Agency for Agriculture, Fisheries and Rural Development.
The main objective of the IPARD programme improvement of the agricultural sector to increase the competitiveness of agricultural products. The Programme has three priority goals:
- Enhancing market efficiency and implementing the EU standards
- Preparations for implementation of agricultural and environmental measures and LEADER, an approach that facilitates development and co-funding of projects in certain regions or micro-regions aimed at mobilising and delivering rural development in rural communities through local public-private partnerships, regardless of the existing administrative borders
- Development of rural economy.
Measures available within the IPARD programme are as follows: Measure 101 – Investment in farms for the purpose of restructuring and meeting the Community standards; Measure 103 – Investment in processing and marketing of agricultural and fish products for the purpose of restructuring of such activities and meeting the Community standards; and Measure 302 – Diversification and development of rural economic activities.
The tenders have been scheduled provisionally as follows:
- Measure 101: 1st March - 1st April 2013; and 1st September - 1st October 2013;
- Measure 102: 1st March - 1st May 2013; and 1st September - 1st October 2013;
- Measure 302: 1st June - 1st August 2013.
The number of applications increases from tender to tender, resulting in over 200 projects being already contracted or in the process of contracting. In line with the positive trends continuing from 2011 and 2012, all the remaining available funding is expected to be contracted.
In force during February 2013
- Act on special tax on motor vehicles (NN 15/13) – partly
- Regulations on submission and collection of data on existing local grants and maintenance and content of the register of state grants in the field of agriculture and rural development (NN 16/13)
- Overview of the planed harmonization of the Croatian legislation with the EU law in 2013 (NN 18/13)
- Decision on the map of regional grants (NN 19/13)
- Act on excise duties (NN 22/13) – partly
- Regulations on amendments on the Regulations on pre-bankruptcy settlement procedure costs (NN 23/13)
Published by the Croatian Government
- Draft Act on amendments on Act on investment promotion and improving the investment climate
- Draft Act on amendments on Act on Accounting
- Draft Act on Value Added Tax
- Draft Act on implementation of European Union customs legislation
Publications of the Tax Authorities
Latest opinions and standpoints of the Tax Authorities:
- Custom clearance of vessels intended for sports and recreation which were temporarily imported to Croatia
In Croatia there is large number of vessels intended for sports and recreation which are temporarily imported by residents of the EU member states. Upon accession of Croatia to the EU, residents of the EU member states will no longer be able to temporarily import vessels, and the obligation of determining the customs status will arise i.e. custom clearance and payment of import duties in accordance with the relevant EU regulations. Tax opinion (Class: 413-01/12-07/19, Receipt No: 513-02-1210/1-12-1, issued on 10 January 2013) was published in February in which Tax Authorities closely describe obligations and requirements for custom clearance of stated vessels.
- VAT treatment of supplies of wine and beer in restaurants
As of 1 January 2013 Value Added Tax (“VAT”) of 10% is paid on food preparation services rendered in restaurants and cafes, and preparation and serving of soft drinks, wines and beers at these establishments. Tax opinion (Class: 410-01/12-01/3420, Receipt No: 513-07-21-01/12-1, issued on 20 December 2013) was published in January in which stated tax treatment is explained in detail.
- Subsequent correction of the VAT base arising from premature termination of finance lease agreement in the event of inability to collect payment
Tax opinion (Class: 410-01/12-01/1067, Receipt No: 513-07-21-01/12-5, issued on 14 December 2013) was published in January in which Tax Authorities conclude that the taxpayer cannot reduce VAT base if the supply is rendered to a private individual or a company that is not registered in the VAT system.
- Conditions for the application of corporate income tax relief related to reinvested profits
Tax opinion (Class: 410-01/12-01/3007, Receipt No: 513-07-21-01/12-3, issued on 30 November 2012) published in January by the Tax Authorities clarifies the conditions for the application of corporate income tax relief related to reinvested profits used for the increase of share capital.
Introduction of EORI system in Croatia
Upon accession of Croatia to the European Union, companies performing activities in the domain of customs legislation shall be obliged to have EORI (Engl. Economic Operators Registration and Identification System) number.
For the purpose of timely issuing of EORI number, local Croatian custom offices are receiving requests for EORI numbers as of 1 February 2013.
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, Hungary, Malta, Poland, Portugal, Romania, Slovakia, Spain, Sweden|
|Member states that have begun the process of ratification:|
|Belgium, Finland, France, Netherlands, United Kingdom|
|Member states that have not yet begun the process of ratification:|
|Denmark, Germany, Slovenia|