The Accounting Differences Between Acquisition And Import Of Goods

Croatian accession to the European Union has led to the accounting differences in purchasing goods from foreign countries. The main accounting difference arises in dependence whether the goods are purchased. From European Union members or from other countries which are not members of European Union. Import of the goods from European Union members after first July of 2013, become acquisition what contributes the appropriate business benefits. The main advantage of acquisition compared to import results in financial sense, arise from the fact that when the companies purchase the goods from European Union members they don’t have to have to pay anymore VAT in order to use it as tax prepayment, now companies only have to calculate and report tax prepayment in VAT declaration. The resulting change should greatly enhance liquidity and solvency of Croatian company.