Bank accounts and cards can be an alternative to fiscalization

The first day of operation for vendors at the markets after the deadline for the introduction of fiscal cash registers passed was characterized by a somewhat reduced volume of business, at least in terms of the market in Karlovac. Unlike several empty stalls, vendors at the stalls equipped themselves with fiscal cash registers and issued receipts from the morning.

Although the Market did not provide vendors with electricity and wi-fi internet connection, vendors managed in various ways: some, like Avdiu Zekerija, connected their tablet and cash register to a car battery, while others acquired devices with built-in batteries.

Niko Pervan, the director of the Karlovac Market and president of the Association of Croatian Markets, although he confirmed today his disagreement with the introduced model of fiscalization, stated that he cannot suggest any behavior to the tenants of the market space other than that in accordance with regulations. Likewise, Pervan says, this does not mean that he and the Association of Croatian Markets are giving up the fight for a change in the necessary introduction of order in the operations of markets in Croatia.

– The lawyer of the Association of Croatian Markets will submit a request to the Constitutional Court in the second half of September for an assessment of the constitutionality of the Law on Fiscalization in Cash Transactions. There are professional and non-governmental organizations that the Government of the Republic of Croatia must respect and whose opinions have not been taken into account, and we are fighting against discrimination. In this regard, we have also requested a statement from the European Commission and the European House in Zagreb on whether all adopted legal acts are in accordance with EU Directives. Specifically, foreigners who come to sell something in Croatia up to the value of goods of 270,000 kuna do not have to be fiscalized, while domestic traders in the same space must, which we consider discrimination against domestic traders, says Pervan.

He emphasizes that his personal stance is that order should be introduced in the operations of all entities appearing in the distribution chain, from wholesale markets to stalls at markets. Regardless of political affiliation, Pervan says, it must be in everyone’s interest to eliminate cash from wholesale operations.

“If retailers could procure all their goods at the wholesale market by paying exclusively through bank accounts, it would create a basis for easy tracking of transactions and determining the corresponding tax for each such entity, which would allow the Tax Administration to obtain data on transactions and tax bases in this entire sector much more elegantly and painlessly, thus, he adds, the introduction of fiscal cash registers at markets would become unnecessary,” suggests Pervan.

In addition to addressing the issue of discrimination against domestic traders compared to their EU counterparts, Pervan proposes declaring markets as intangible cultural heritage with taxation at a rate of 10 percent, which, in his opinion, would double the turnover instead of the current doomed to failure, and even improve the quality of the offer in a short time.

As for the complaints from traders at the market that their sales and transactions are slowed down and customers are driven away by the slowness and instability of the internet connection with the Tax Administration server, Pervan says that UHT has made a very favorable arrangement with HT for the lease of so-called mini fiscal cash registers with mobile access to the Tax Administration and allegedly specially adapted “heavy duty” working characteristics in extreme weather conditions.

– In addition to the simplicity of working with these cash registers and constant support from the operators, a significant novelty they bring will be the ability to pay by card at the stalls, starting from September. This model has a magnetic card reader and thus this cashless payment method is winning over the previously cash-oriented trade at the markets. The problem may be occasional peak loads during certain traffic spikes, but over time and with the modernization of internet connections, this will also speed up, announces Pervan.