English for Tax Administration 2

1. English for TaxAdministration 2 Lecturer: Miljen Matijašević G10, room 6/I, Tue 11:30-12:30 e-mail: miljen.matijasevic@gmail.com Session 7, 29 Apr 2014

2. Today’s Session • Revisionquestionsandexercises • Indirect Taxation – Value Added Tax

3. Revision Vocabularyexercises

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 • 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 • consumptiontax • inheritanceandgifttax • tradingnametax • slot-machinetax • tax on gainsofthegamesofchance

6. estimate – deem – ensue – detriment - shamobtain - 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.

7. estimate – deem – ensue – detriment - shamobtain - 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.

8. 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 1.000 Kn. • Sud je naredio privremenu zabranu obavljanja djelatnosti. • Porezni dug je otpisan budući da dužnik nema nikakve imovine. • Prisilna naplata vrši se zaplijenom imovine.

9. 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 court imposed a temporary ban of business activities. • The tax debt was written off as the tax debtor owns no property. • Forciblepayment is carriedoutbyseizureofproperty.

10. Indirect Taxation Value Added Tax Unit 4

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

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

13. 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

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

15. 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)

16. 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

17. 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

18. VAT Rates • The standard rate: 25 % • Reducedrates: 13 % and 5 %

19. 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

20. Key vocabulary input tax output tax deductible legal entity taxable activity non-resident taxable person to be exemptfrom taxabletransaction supply of goods or services consideration free of charge customs duty customs clearance processing (of goods)

21. Practice • Do the exercises on p. 15 in your coursebook

22. Thank you for your attention!