MINISTARSTVO FINANCIJA

REPUBLIC OF CROATIA
MINISTRY OF FINANCE – TAX ADMINISTRATION
CROATIA IN GENERAL
CTA Central office
CTA IN GENERAL
CTA is an administrative organisation within Ministry of Finance
whose basic duty is to implement tax regulations and regulations
concerning obligatory contributions
HISTORY
From 1994 to 1998 – tax
reform with emphasis on
direct taxes, modernisation
of tax administration,
introduction of VAT;
TODAY
 27
taxes
 national,
county,
city/municipal & joint
Sectors/industries in which the level of informal
economy is high

retail trade,

activity of preparation and serving of food and drinks,

apartments and rooms rental,

rent a boat - charter,

taxpayers who are using cash in everyday business

construction industry
Main reasons why the informal economy is high

Small businesses with small profit

Lack of tax inspectors and labor inspectors

No track of cash payments – easy to hide

Selling products or services without a bill

Avoiding VAT in order to be more competitive with lower prices

Low tax morale

Impact of global crisis and unsecure future
Fighting informal economy

Lump sum taxation

PIN-personal identification number

Prohibition and Prevention of performing unregistered activities act

Tax audit

Penal provision
Lump sum taxation

For rent apartments, rooms and beds

For self-employment - small business and activities equivalent
thereto and activities in agriculture and forestry
Personal identification number (PIN)

The main obstacle to the state administration informatization was
the lack of a single identifier for the registration of persons in official
records.

PIN as the unique common identifier for the registration of natural
persons and legal entities in the official records was issued in 2009,
and its full implementation started in 2011. It facilitates record
keeping on natural persons and legal entities and property, which is
a great advantage for the Tax Administration.
Main reforms in 2012. – dealing with informal
economy

Fiscalization act

Restricted cash payments

Introducing a unique report for all payments to natural person
(taxable or non taxable) – reporting daily or monthly

Improving tax audit

Tracking of assets

Introducing a new sector for large taxpayers

Vouchers for workers in agriculture

Simplifying Tax Procedures

Establishing Databases on Taxpayers’ Property
Fiscalization

What is fiscalization?
- set of measures to be applied by taxpayers to achieve effective
supervision of recorded turnover in cash
- fiscalization - introducing order, establishment of the system of
recording of each issued bill = recording of inputs of goods and
services that create new values​​, recording each and every actual
cost in private businesses - all with the bill

Why fiscalization?
- high levels of tax evasion, low record turnover
- only 15% of turnover - turnover in cash
- the results of tax inspection
- culture billing/culture taking bill
Fiscalization (II)

Objectives of fiscalization?
- prevent tax evasion in the cash business
- improve the procedures of tax inspection
- raise customer awareness of the importance of taking the bill
- suppression of unfair competition
Aplikativni certifikati za fiskalizaciju
(X.509 v3 standard)
POREZNI
OBVEZNIK
Generiranje xml
datoteke
Potpisivanje xml-a
Spremanje potpisanog
xml-a
Kreiranje SOAP poruke
Poziv web servisu
Porezne uprave (slanje)
Spremanje odgovora
Porezne uprave
Ispis računa nakon
odgovora
1.
4.
5.
<?xml
version="1.0
"?>
<fiksalizaci
ja-rn>
<document >
Provjera poruke
Provjera certifikata i
potpisa
Generiranje JIR-a i
bilježenje vremena
Kreiranje i potpisivanje
SOAP povratne poruke
SOAP/https
online slanje poruke u Poreznu upravu
2.
SOAP/https
online slanje odgovora blagajni
6.
<?xml
version="1.
0"?>
<fiksalizac
ija_OK>
<document >
3.
sms/web provjera
Zaprimljeno hvala!
7.
Facilitate Tax Compliance by Improving Services
to Taxpayers Performance Indicators:

Taxpayers satisfied with services provided by the Tax Administration

Tax compliance simplified with lower costs for taxpayers

Increased efficiency of Tax Administration's employees, because
manual work has been significantly reduced due to the use of
modern information technology and employees deal with more
demanding tasks of analysis and control

Significantly reduced non-compliance risks

Increased number of tax returns submitted by legal entities through
ePorezna; in comparison with 2009 (3%) the aim is to increase the
share to 10% in 2011, 30% in 2012 and 80% in 2013
Eff ective Non-Compliance Problem Solving
•
Strengthening Administrative Capacities for Large Taxpayers
•
Strengthening administrative capacities and procedures
in the field of VAT
•
Improving tax procedures in local offices
•
Improving tax audit procedures
Conclusion

The Tax Administration discovers ever greater number of taxpayers
who evade taxes or who participate in designed tax frauds. Due to
its frequency, fraudulent behavior represents a great challenge for
the Tax Administration and imposes a need for continuous training
of tax inspectors and exchange of information with other tax
administrations. Significant administrative capacities are used for
enhanced tax audit.

Partnership with taxpayers is an important component for perfecting
the operations of the Tax Administration and the realization of its
strategic goals. Therefore, innovations and continuous quality of
service provision are of utmost relevance.
THANK YOU FOR YOUR ATTENTION!
www.porezna-uprava.hr