Turnover: What it is and how it is calculated
Posted: Wed Dec 18, 2024 4:22 am
The Resolution of May 16, 1991 of the Institute of Accounting and Auditing of Accounts establishes the general criteria for determining the composition of the net amount of the turnover .
The net amount of the annual turnover reflected in the profit and loss account of the normal and abbreviated models of the General Accounting Plan is obtained:
Adding sales and services.
Subtracting the amount of returns and rebates on sales .
To determine the croatian email list amount of turnover, the following components must be taken into consideration:
Positive components:
Sales and provision of services arising from the company's ordinary activity carried out regularly.
The valuation at acquisition price or production cost of goods or services delivered in exchange for non-monetary assets, or as consideration for services that represent expenses for the company .
Products consumed by the company itself or for self-consumption, or work carried out for itself, are not included.
Financial income and subsidies are not included, except when they are granted based on the units of products sold and form part of the sales price of goods and services.
Financial income derived from installment sales of goods and services will not be part of turnover.
VAT will not be included in the turnover, nor will special taxes levied on the manufacture or import of certain goods.
Negative components:
3) Turnover and consideration of large company for the Tax Agency
For the Tax Agency, companies whose volume of operations exceeds 6,010,121.04 in the current year are considered Large Companies , and are considered Large Companies from January 1 of the following year.
Going from being an SME to being a large company involves the following for tax purposes :
The company must report this to the Tax Agency using form 036.
The self-assessment of Form 111 for personal income tax withholdings goes from quarterly to monthly.
The VAT self-assessment submitted using Form 303 will go from being quarterly to monthly.
Fractional payments on account of personal income tax must be calculated on the taxable base of the current year and not on the full amount of previous periods.
Sage 50 makes it easy for you to comply with your tax obligations, whether monthly or quarterly.
4) Turnover and consideration of small company for the Tax Agency
The Tax Agency considers a company to be small when its turnover in the previous year was less than 10 million euros . To determine the turnover, the set of economic activities carried out by the taxpayer must be taken into account.
Considering a company as small in size has the following tax advantages in corporate tax:
Freedom of investment for low-value goods, whose unit value does not exceed 300 euros.
Freedom of amortization for investments that generate employment.
Accelerated depreciation of fixed assets.
Tax advantages for assets acquired under financial leasing.
Deduction of the loss due to impairment of credits to cover the risk arising from possible insolvencies up to a limit of 1% on existing debtors at the end of the tax period.
5) Turnover and Tax on Economic Activities
If your turnover reaches one million euros, you will no longer be exempt from the Tax on Economic Activities , and you will therefore have to assume the cost determined by the tax rates, depending on the activity carried out, the municipality and the surface area of the premises.
6) Turnover and obligation to be audited
Companies are required to carry out an external accounting audit when they meet two of the following conditions for two consecutive years:
Turnover exceeding 5.7 million euros.
Total assets of over 2.8 million euros.
Average of more than 50 employees during the year.
The audit of the consolidated annual accounts is also mandatory when two of the following limits are exceeded for two consecutive years:
This figure is also decisive when applying the company's accounting plan . Although the General Accounting Plan for SMEs is voluntary, meaning that the requirements for applying it can be met, but the general version can be chosen, companies that decide to apply it must meet at least two of the following requirements:
The net amount of the annual turnover reflected in the profit and loss account of the normal and abbreviated models of the General Accounting Plan is obtained:
Adding sales and services.
Subtracting the amount of returns and rebates on sales .
To determine the croatian email list amount of turnover, the following components must be taken into consideration:
Positive components:
Sales and provision of services arising from the company's ordinary activity carried out regularly.
The valuation at acquisition price or production cost of goods or services delivered in exchange for non-monetary assets, or as consideration for services that represent expenses for the company .
Products consumed by the company itself or for self-consumption, or work carried out for itself, are not included.
Financial income and subsidies are not included, except when they are granted based on the units of products sold and form part of the sales price of goods and services.
Financial income derived from installment sales of goods and services will not be part of turnover.
VAT will not be included in the turnover, nor will special taxes levied on the manufacture or import of certain goods.
Negative components:
3) Turnover and consideration of large company for the Tax Agency
For the Tax Agency, companies whose volume of operations exceeds 6,010,121.04 in the current year are considered Large Companies , and are considered Large Companies from January 1 of the following year.
Going from being an SME to being a large company involves the following for tax purposes :
The company must report this to the Tax Agency using form 036.
The self-assessment of Form 111 for personal income tax withholdings goes from quarterly to monthly.
The VAT self-assessment submitted using Form 303 will go from being quarterly to monthly.
Fractional payments on account of personal income tax must be calculated on the taxable base of the current year and not on the full amount of previous periods.
Sage 50 makes it easy for you to comply with your tax obligations, whether monthly or quarterly.
4) Turnover and consideration of small company for the Tax Agency
The Tax Agency considers a company to be small when its turnover in the previous year was less than 10 million euros . To determine the turnover, the set of economic activities carried out by the taxpayer must be taken into account.
Considering a company as small in size has the following tax advantages in corporate tax:
Freedom of investment for low-value goods, whose unit value does not exceed 300 euros.
Freedom of amortization for investments that generate employment.
Accelerated depreciation of fixed assets.
Tax advantages for assets acquired under financial leasing.
Deduction of the loss due to impairment of credits to cover the risk arising from possible insolvencies up to a limit of 1% on existing debtors at the end of the tax period.
5) Turnover and Tax on Economic Activities
If your turnover reaches one million euros, you will no longer be exempt from the Tax on Economic Activities , and you will therefore have to assume the cost determined by the tax rates, depending on the activity carried out, the municipality and the surface area of the premises.
6) Turnover and obligation to be audited
Companies are required to carry out an external accounting audit when they meet two of the following conditions for two consecutive years:
Turnover exceeding 5.7 million euros.
Total assets of over 2.8 million euros.
Average of more than 50 employees during the year.
The audit of the consolidated annual accounts is also mandatory when two of the following limits are exceeded for two consecutive years:
This figure is also decisive when applying the company's accounting plan . Although the General Accounting Plan for SMEs is voluntary, meaning that the requirements for applying it can be met, but the general version can be chosen, companies that decide to apply it must meet at least two of the following requirements: