NF-2011-03- Submission of tax returns electronically from 1 January 2012 

Taxpayers who are obliged to electronically submit tax returns and other reports
As of 1 January 2012, the following taxpayers are obliged to electronically submit to the Croatian Tax Authorities (CTA) tax returns and other reports, supported by the CTA’s electronic „ePorezna“ service:

·     medium and large sized entrepreneurs (according to the Accounting Law);

·     VAT taxpayers whose annual taxable deliveries of goods and services exceed of HRK 800,000 (domestic taxable deliveries and exports).

If not otherwise required to submit tax returns and other reports electronically, employers or payers of salary and pension that have more than 100 employees, retirees and other persons to whom receipts are paid in accordance with the Personal Income Tax Law, are only obliged to electronically submit monthly ID forms.

Tax payers not otherwise required to submit tax returns and other reports electronically may voluntarily register and use „ePorezna“ services (there are a number of benefits of doing so).

Tax returns and other reports that can be submitted electronically
Currently, electronic submission of the following tax returns and other reports the ePorezna service allows:

·     monthly and annual VAT returns (eVAT and eVAT-K returns);

·     monthly reports on salaries and other income (eID and eIDD reports);

·     annual corporate income tax return (eCPT return);

·     annual calculation of monument fee (eSR);

·     annual calculation of tourist fee (eTZ);

and insight into the CTA records of the taxpayer (ePKK).

The following tax returns and reports must be physically submitted on electronic media (diskette HD 3,5, CD, DVD or USB):

·     annual information on salaries or pension (IP form);

·     annual report on allowances disbursed and the advance payments of withholding tax on other income, income from property rights, income from capital and income from insurance (ID-1 form); and

·     annual information on personal income tax deductible insurance premiums and voluntary health insurance premiums.

Furthermore, from 1 January 2012 the submission for public announcement of Annual Financial Statements to FINA (Financial Agency) is no longer free of charge.  However, if Annual Financial Statements are submitted electronically (the possibility provided by FINA e-card), the service continues to be free of charge.

ePorezna
In order to use ePorezna services a digital certificate that contains information proving the identity of the legal entity, including an electronic signature (a signature is an obligatory part of every tax return and report) must be obtained.  The authorized issuer of digital certificates is FINA and the certificate is issued on a FINA e-card that also allows users access to certain other services.  

For both ePorezna services and FINA e-card services a taxpayer may empower another person, such as a bookkeeper, to on behalf of the taxpayer, submit tax returns and other reports to the CTA and FINA.

Penalty provisions
The General Tax Law prescribes penalties for both legal entities and individuals who do not electronically submit tax returns and other reports, and who are obliged to do so, ranging from HRK 5,000 to HRK 500,000 and for the responsible person ranging from HRK 2,000 to HRK 100,000.  

For more information on submission of tax returns electronically, please contact Kristina Grbavac, Senior Manager, Taxation Services.

Contact:

Tel:  +385 1 5390 006
Fax: +385 1 5390 111

tax@kpmg.hr
kpmg.hr