'Suppression of grey economy'

Gov't proposes new bill issuance rules to improve tax collection

26.07.2012 u 13:35

Bionic
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The government aims to bring more order to transactions by cash in restaurants, bars, cafes and other segments of the catering sector as well as to payments for services provided by doctors and lawyers, and therefore it has prepared the bill on fiscalisation in cash transactions.

Presenting the bill, Finance Minister Slavko Linic told the government's meeting in Zagreb on Thursday said that the proposed measures included the obligation of cafe and restaurant owners and retailers to register with the Tax Administration every bill they give to their customers.

The minister believes that this would enable more efficient supervision over tax obligations and more efficient tax collection as well as the suppression of the grey economy, all of which would improve competitiveness.

The government has abandoned an idea of imposing the installation of approved fiscal cash registers as an outdated solution. Given that cafes, restaurants and shops already use computers and state-of-art IT devices, the bill envisages the implementation of software solutions that would connect tax payers and the tax administration.

The enforcement of the new legislation will start on 1 January 2013 and will have three stages. Big and medium-sized companies and restaurants will be expected to be the first to implement those software solutions. As of 1 April they will be followed by free lancers, self-employed persons and shops, and on 1 July all other businesses will start implementing those solutions.

The finance ministry said that this measure was necessary given that it was estimated that only 30 percent of cash transactions have so far been reported by such businesses and services.

The costs which the Tax Administration will incur in the enforcement of the law in the first year are put at HRK 13 million, and they are likely to rise to HRK 15 million in 2014.

The bill was sent into parliamentary procedure.