‘Reconsider the Fiscalization of Markets Once Again’

The Croatian Chamber of Trades and Crafts (HOK) has submitted comments and proposals to the Ministry of Finance regarding the obligation of fiscalization in markets and open spaces, and appeals for a reconsideration of the possibility of exempting this activity from fiscalization, as stated in today’s HOK press release.

HOK emphasizes that all users of public spaces, tenants of stalls or stands, have always been taxpayers who were obliged to keep business records and pay the appropriate taxes according to their tax returns. Likewise, contributions for pension and health insurance, corporate tax, tax for the use of public spaces, and others, and the correctness of operations has been monitored by the Tax Administration through regular inspections, which imposed legally defined penalties for business violations.

The only difference that existed between users of public spaces and users of closed-type business premises was the non-obligation to issue receipts (except at the customer’s request), which took into account the specificities of doing business in markets and open spaces, such as: exposure to weather conditions, limited business space, flexibility of working hours, and seasonal business in tourist areas, as stated in the press release.

Accordingly, HOK believes that the aforementioned specificities of doing business in markets and open spaces should be taken into account and that their users should therefore be exempt from fiscalization.

“We emphasize that EU member states generally do not have legislative practices mandating the issuance of receipts in markets,” the press release states.

Therefore, HOK appeals for the Ministry of Finance to reconsider the possibility of exemption from fiscalization for sales activities in markets and open spaces in accordance with the provision of Article 6 of the Fiscalization Act.

Today marks the beginning of the implementation of fiscalization measures in markets, after the Ministry of Finance allowed a one-month delay in the application of new regulations. Many vendors have announced that they are going on vacation. They believe that fiscalization imposes new costs and complicates their work because during peak times, when they sell the most, waiting for receipts slows down operations and drives away customers.

In its press release, HOK particularly emphasizes the need for exemption of certain activities, especially producers of traditional products such as licitari and traditional children’s toys, not only in markets but also at special events, celebrations, fairs, and festivals.

Additionally, HOK proposes that the sale of fish from catches should be exempt from fiscalization in markets and open spaces, as is determined for fish from private farming.

Furthermore, according to information from the field, conducted supervisory inspections in hospitality and trade regarding the application of the Fiscalization Act show that drastic penalties have been applied for minor violations for small hospitality and trade operators.

HOK believes that preventive action is necessary with prior warnings and education, instead of closing establishments during the peak season. At the same time, they propose that a small amount of excess in the cash register should not be considered a violation, but rather that a reasonable allowable tolerance for excess should be established, concludes the press release.