European Union (EU) Tax Updates for July 2013

Croatia joins the European Union

On July 1, 2013, Croatia will become part of the European Union (EU). In line with this, the following changes will be made to your NetSuite account:

 

1)    Entity records

a.     The Tax Reg. Number on customer/vendor records (Financial tab) will have 'HR' as the country prefix if the address (country) is Croatia

 

2)    Tax Code

a.     Tax Code pages for Croatia will include additional tax code properties just like the other EU member countries:

                                          i.    EC Code

                                         ii.    Notional Rate Derived From

                                        iii.    Reverse Charge

                                        iv.    Reduced Rate

 

3)    EU Sales List and Intrastat reports will be updated to include transactions to/from Croatia beginning July 1, 2013

 

4)    VIES validation - validate Croatia VAT numbers once the EU database is updated

 

Note: These changes will be available by mid-June 2013

 

Other Tax Rate Changes

 

The following countries have announced increases effective July 1, 2013:

 

Country	New Rates
	Standard	Reduced
Italy*	22.0%	10.0%
Slovenia	22.0%	9.5%

 

*For approval of the Parliament; reduced rate remains unchanged at 10%.

  According to deputy government Economy Minister, the increase may be postponed for at least three months.

 

Please refer to the following Help article:

 

Managing Tax Rate Changes