How are different expense categories treated for reimbursement?

Expenses Invoicing Requirements

Velocity Global Croatia

The VAT registration number – HR82732177021

The description of goods/services supplied.

The total charge, including VAT.

The name and address of the supplier.

The date of supply.

Passports/Work Permits/Visa

Non-taxable expense

Transportation Expenses

No issues, can be claimed as non-taxable as long as receipt is supplied

Per diems

Per diems are allowed with government-defined rates. The statutory maximum is HRK 200 per day for domestic travel, subject to local tax rules.

Air Travel/Bus and Train

Yes, invoices must be issued on the employee's name or our entity's name. Otherwise, they can be paid only as bonus

Taxi, Cabify, Uber, and related apps

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Rental

No issues, can be claimed as non-taxable as long as receipt is supplied

Car Parking Fees

No issues, can be claimed as non-taxable as long as receipt is supplied

Tolls

No issues, can be claimed as non-taxable as long as receipt is supplied

Other Business Travel-Related Expenditure

No issues, can be claimed as non-taxable as long as receipt is supplied

Travel Insurance

Can be reimbursed tax-free, if they relate to a business trip and an receipt is provided.

Mileage and Fuel

Non taxable if a mileage report is submitted with details of journey..

Fuel cannot be submitted unless presented together with a car rental agreement. 

Motorola EE's (D3841 NSID) can submit an excess amount of .07EUR per KM but it must be grossed up

Fuel cannot be submitted unless presented together with a car rental agreement.

Compliant Mileage must be included "For Reporting Only" in Payroll

Accommodation

No issues - Please supply receipt with claim

Meals (travel/events/during work)

Reimbursed when work related

Client Entertainment

Non-taxable expense -The name of each external client/contact and the name of the individual (with his/her job position)

Staff Entertainment

Non-taxable expense -The name of each external client/contact and the name of the individual (with his/her job position)

Mobile Phone bills

If an itemized bill is provided clearly showing business and personal costs - it can be reimbursed non-taxable. Otherwise, taxable

Broadband (Internet)

Taxable expense

Computer Equipment, Software, Office Space, Furniture, Phones, Other Assets

All fixed assets are reimbursed tax free if for business purpose. 

Furniture

All fixed assets are reimbursed tax free if for business purpose. 

Stationery

No issues as long as directly related to business - please supply receipt

Gifts

N/A

Coworking and Office Rentals

Non-taxable expense

Bank Charges

Non-taxable expense

Foreign Currencies

Non-taxable expense

Annual subscriptions

No issues if directly related to business - Please supply receipt

Training Expenses

No issues if directly related to business - Please supply receipt

Medical Claims/Health Check Up and related items/Medical Insurance

No issues if directly related to business - Please supply receipt

Exception and Other tpyes of expenses

N/A

Event expenses (trade shows/conferences)

Yes, they are reimbursed upon submitting the invoice

Meals (travel/events/during work)

Business meals are not taxable and all other meals are taxable

Di minimus expenses (Tips, no receipt)

No. The employees have to provide an invoice/receipt for any expenses, regardless of the amount

Payroll Reporting

Compliant Mileage must be included "For Reporting Only" in Payroll

Additional Reporting

Each FRP, tax free amounts are sent to the partner - matea.breznik@mazars.hr and payroll@mazars.hr

Review process

Note any mileage claims for payroll reporting (easiest to note the amounts in sheet as you review each cycle)

Motorola EE's get a special rate of .57 instead of .5 per km. You'll see that they submit two lines per claim (or they add all mileage together and submit under the Excess rate of .07 per km.) The extra .07 per km is grossed up

Dinko Uzelac can expense fuel as he has a company car