engleski

Voluntary entry into the value-added tax system

In the Republic of Croatia, micro and small businesses are faced with many dif-ficulties when starting a business. In addition to administrative barriers, limited resources, conquering new markets and attracting new customers, micro and small businesses face numerous other challenges when starting a business. One of the challenges is entering into the value-added tax system. Entrepre- neurs need to fully study all the essential components of the system, and upon that, they need to decide if the entry in the VAT system is financially profitable for them or not. There is no unique answer to which solution is better because this depends both on the circumstances and the type of the business itself. Any wrong decision can increase the tax burden even though this is not exclusive. It is very important to understand every essential component of voluntary entry into the value-added tax system in its entirety. Consequently, this paper aims to research the legal requirements, as well as the advantages and disadvantages of entering the value-added tax system, and to show the conclusions on the given topic. For the purposes of this paper, a research was conducted among taxpayers who had experience in value-added taxation, but also among entrepreneurs who are still unsure whether they want to enter the value-added tax system on a voluntary basis. Based on the results of the research, recommenda-tions were made for future research on value-added taxation.

value-added tax ; voluntary entry ; micro and small business ; the value-added tax system

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