Croatian companies are intensively preparing for eurozone membership

0

August 28, 2022 – Croatian businesses are now preparing intensively for the country’s membership of the Eurozone, which is now approaching very quickly. All salaries that would otherwise have been paid in Croatian Kuna for the month of December 2022, will be paid in January 2023 in the new currency – Euro.

As Novac/Gordana Galovic/Jutarnji list writes, due to the upcoming introduction of the euro, Croatian companies are subject to the demanding process of adjusting their accounting processes, preparing financial statements, paying salaries , tax reporting and other similar activities in euros. According to data from the Central Bureau of Statistics (CBS), at the end of June 2022, there were 316,052 registered business entities operating in Croatia, of which 56% or 176,882 are active.

Most commercial companies, 141,743 to be more precise, are active and 93,393 are businesses and similar. The main cost for each is the adjustment of computer and accounting systems.

Invoices, wages and payment slips, postal account statements, delivery notes, purchase orders, receipts and other accounting documents on the basis of which commercial events are recorded in the commercial books must be denominated in the official currency of the country where they are transported This means that companies declare them in kuna until December 31 of this year, and after January 1, 2023, all this will be done exclusively in euros. Invoices and other accounting documents dated before and on December 31, 2022, which companies will issue after January 1, 2023, whether or not they contain double amounts in kuna and euros, must be issued in euros.

Croatian companies will pay all their expenses in euros from 1 January 2023. Only during the period of dual circulation, i.e. the first fourteen days of January 2023, kuna in cash can be used as legal tender when paying cash. If something is paid cashless, from 1 January 2023 it will automatically be paid in euros because the amounts on deposit, savings and transaction accounts, other payment accounts, payment instruments and other recordings will be converted from kuna to euros without any charge. , with application of a fixed conversion rate and in accordance with the conversion and rounding rules.

Companies will have to declare their tax returns, as well as their tax returns for 2022, but submitted in 2023, in kuna. An exception is for corporate taxpayers whose tax period begins before the introduction of the euro and ends after the day of the introduction of the euro, they can file their corporate tax return for this tax period in euros.

As for companies that are required to submit annual financial statements, all those whose business year is equal to the calendar year will be required to prepare and submit annual financial statements for 2022 in kuna.

If Croatian business entities receive an invoice after the end of the financial year for the previous period, this must be in euros. The exception concerns companies whose fiscal year is different from the calendar year. If the last day of their financial year is after the day of the introduction of the euro, they must mention in their financial statements all of their data relating to the previous financial year in their financial statements in euros.

To learn more, be sure to check out our dedicated lifestyle section.

Share.

Comments are closed.