The Tax Administration has reported that the effects of fiscalization are better than expected. They anticipated 500 million kuna in VAT revenue, but significantly more, around one billion kuna, could flow into the state treasury. As many as 500 inspectors from the Tax Administration are “combing” the coast and closing down all establishments in their path, even if there is a kuna surplus in the cash register. This pressure has been beneficial for the state.
Approximately six thousand establishments have been temporarily closed, with their owners paying 4 million kuna in fines. After the inspectors finish combing the coast, they will turn their attention, as stated by the Tax Administration, to lawyers, doctors, and public notaries – that is, the control of their cash registers.
In the first six months of this year, hospitality and retail businesses in Croatia reported, as we have already announced, 7 billion kuna more in deliveries subject to value-added tax (VAT) than in the same period last year, while the total taxable deliveries across all sectors increased by 13 billion kuna.
Since January 8, the Tax Administration has been continuously monitoring the implementation of the provisions of the Fiscalization Act in cash transactions. By August 12, a total of 25,394 inspections had been conducted, revealing 3,055 irregularities and issuing 596 temporary bans on conducting business.
