Forvis Mazars Tax News - October 2025

On the e-Savjetovanje website, public consultation for the following regulatory proposals has begun (Regulations have not been published as of the date of this Newsletter):

·       Value Added Tax Act,

·       Accounting Act,

·       Corporate Income Tax Act, and

·       General Tax Act.

In the brochure is an overview of the most significant changes.

• Change of the VAT return and related forms submission deadline from the 20th day of the month to the last day of the month
• Abolition of the URA and PPO forms
• Abolition of the obligation to issue invoices for currency exchange services
• If there is an obligation to issue invoices in electronic form under the Fiscalization Act, such invoices issued and sent electronically will be considered valid without the recipient’s consent to accept the electronic invoice
• Postponement of the start of the sustainability reporting obligation by two years for the second group (other large companies not included in the first group) and the third group (small and medium-sized enterprises whose securities are listed on a regulated market of any EU Member State) of sustainability reporting entities
• Entrepreneurs must now submit to the Financial Agency (FINA), along with their annual financial statements, the final decision on profit distribution or loss coverage once adopted, so that it can be stored in the Register of Annual Financial Statements (if the draft decision was submitted by the public disclosure deadline)
• The procedure for crediting tax paid abroad is specified
• Decrease of the tax base for sponsorship expenses of sports organizations
• The taxpayer is obliged to provide all the necessary evidence when certain data recorded in the books are temporarily excluded by increasing or decreasing the tax base, but are included in future tax periods
• Use of other TP methods in accordance with OECD guidelines is allowed
• Taxpayers who keep business records for a taxpayer, as well as other persons in possession of such data, and who keep in electronic form such data that directly or indirectly affect the determination of the tax base, must, at the request of the Tax Administration, submit business books, records and reports in electronic form in standardised formats, and the Tax Administration may copy the data in electronic form and make or request a true copy of the entire media and request encryption keys or passwords if they are necessary for access to the data or the readability of the data, if the data directly or indirectly affects the determination of the tax base
• Abolition of the obligation to submit a statistical report on due and unpaid claims
• In case of suspicion of a tax offense, the Tax Administration is authorized to request and collect data, documentation and records that are necessary for the determination of a criminal offense, and to request the same from other competent bodies and companies authorized to hold and/or keep such data, documentation and records