1. English for Tax Administration 2
Lecturer: Miljen Matijašević
G10, room 6/I, Wed 11:00-12:00
Session 7

2. Today’s Session Revision questions and exercises
Indirect Taxation – Value Added Tax

3. Revision
Vocabulary exercises

4. Translate into English
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

5. Translate into English
value added tax
personal income tax
corporate income tax
excise taxes
real property transfer tax
tax on car insurance premiums
motor vehicle tax
public land use tax
second home tax
local surtax

6. Translate into English
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

7. estimate – deem – ensue – detriment - sham obtain - disclose – liability – statute
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.

8. estimate – deem – ensue – detriment - sham obtain - disclose – liability – statute
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.

9. Translate into English
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 Kn.
Porezni dug je otpisan budući da dužnik nema nikakve imovine.
Prisilna naplata vrši se zapljenom imovine.

10. Translate into English
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 tax debt was written off as the tax debtor owns no property.
Forcible collection is carried out by seizure of property.

11. Indirect Taxation Value Added Tax
Unit 4

12. Value Added Tax
Levied at each stage of the production and distribution process
Input tax deductible from the output tax
INPUT TAX – pretporez
OUTPUT TAX – izlazni porez

13. Taxable persons Individuals
Legal persons engaged in taxable activities
Taxpayers whose supplies equalled more than HRK 230,000 must enter the VAT system

14. Taxable persons 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

15. Taxable transactions Taxable transactions include
Supply of goods and services for consideration within Croatia
Self-supply of goods and services
Importation of goods

16. Taxable transactions 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)

17. Taxable transactions 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

18. Taxable Amount (base)
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

19. VAT Rates
The standard rate: 25 %
Reduced rates: 13 % and 5 %

20. Non-residents
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

21. Key vocabulary
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)

22. Thank you for your attention!