The arrival of the euro as the official currency in the Republic of Croatia will bring changes in numerous business segments. The day-to-day issuance of documents, certificates and data exchange by public authorities will undergo several changes that should be noted.
In the last article, Confida presented the changes in business books, financial statements, and reporting of taxes after the euro introduction. Today we are presenting the changes in the issuance of documents, certificates, and data exchange by the public authorities with the euro arrival as the official currency.
Changes in the issuance of documents, certificates, and data exchange
In certificates, extracts, and other public documents with facts for which the public authorities keep the official records, the values are expressed in kunas, in the period before the euro introduction. For facts concerning the period after the euro introduction, the amounts are stated in euros.
Such documents are not expressed double because they are about payments/disbursements that have already been made. Such documents do not result in obligations for future payments/disbursements, so there is no need for double expression.
If a situation arises where a certificate, extract or other public document is requested, which at the same time should contain data for the period before and after the euro introduction, then two documents will be issued. These documents will be equal in all parts except for the part of the monetary value. In one document, the monetary amount will be expressed in kunas, and in the other in euros, with a fixed conversion rate.
Amounts from certificates that are exchanged with other public authorities will be exchanged as standard without changing the WEB service. From the official records, the exchange of data is done in the currency in which it is stated in the tax returns and forms.
A double statement of the amount is required on the acts of the Tax Authorities
Administrative, judicial, and other individual acts issued by public authorities during the period of double expressing have the obligation of double expressing. The statement will be executed so that the total monetary amount of the determined obligation or right on the act based on which the payment or payment obligation arises is expressed double in kunas and euros with the indication of the fixed conversion rate. The rule of double expressing does not apply to other monetary values on the individual act.
Via ePorezna, in the period of double expressing, taxpayers will be able to find an overview of the tax accounting card where all items will be expressed in double currency. From that period onwards, it will be possible to view unrelated payment items in the SNU application, which will be expressed in kunas and euros.
Changes in the accounting records
Changes will also appear in the accounting records. Namely, the accounting balances in the tax records on the last day before the date of euro introduction will be converted into euros with the application of a fixed conversion rate and in accordance with the rules for conversion and rounding. After the date of the euro introduction, the initial balances, as well as all changes in business events after the date of the euro introduction, will have to be recorded in euros.
