E-invoicing in public procurement expected to save over HRK 2 bn

Photo /Vijesti/2018/06 lipanj/7 lipnja/100sjednica.jpg

The government on Thursday sent to parliament a bill on electronic invoices in public procurement to accelerate and automatise doing business and reduce its costs in the hope of saving over HRK 2 billion annually.

Due to the lack of a proper legal framework, many businesses have been using the paper and electronic systems, which has meant higher costs.

"With the establishment of an integral electronic public procurement system, we expect to save between 6% and 13%. Given the volume of public procurement, which amounts to HRK 44 billion, we predict to save more than HRK 2 billion, primarily in small procurement, which makes up almost 23% of the total volume," said Economy Minister Darko Horvat.

The bill stipulates the obligation to accept e-invoices in public procurement as of 1 December 2018 and the obligation to issue them as of 1 July 2019, he said, adding that the European directive on e-invoicing in public procurement obliged the 5,000 subjects involved in public procurement in Croatia to accept electronic invoices in line with EU norms.

The new law will also apply to public procurement of goods and services worth less than HRK 200,000 which will significantly increase the volume of e-invoicing, said Horvat.

The Economy Ministry will set aside HRK 4 million over the next three years to implement the law. Electronic invoicing will reduce administrative costs, enable full transparency of the fiscal effect in public procurement, and facilitate tax control.

The government on Thursday sent to parliament a final bill  on municipal services.

The current law was adopted in 1995 and was amended 18 times, the state secretary at the Construction and Physical Planning Ministry, Danijel Mestric, said at a cabinet session.

The new law will establish a municipal services system aligned with laws on water supply and drainage, waste management, funeral service, concessions, physical planning and public procurement, he said.

The implementation of the new law will not require additional funds in the national or local government budgets.

A final bill regulating the management of archive materials and archives, that paves the way for the functioning of archives in the digital era, was put forward by the government to the parliament on Thursday.

We expect the provisions of this bill that make it possible for digital operations in the digital format to be stored in archives, which will considerably reduce the costs of doing business, Culture Minister Nina Obuljen Korzinek said.

She underscored the liberalisation of access to archival materials by this new law.

It is a crucial novelty whereby we make archival materials available as much as possible in comparison to previous procedures, the minister said.

The bill also envisages the elimination of the "thirty-year rule" under which, until now, archived  documents could be released publicly only thirty years after they were created.

Furthermore, materials which were created between 1945 and 30 May 1990 and stored in the archives will now be made available without restrictions, except when it comes to classified personal data.

The government also put forward to the parliament a bill on museums envisaging the strengthening of the role of the Museum Documentation Centre.

Also, a final bill on audiovisual  services was formulated by the government and it specifies more precisely the procedure for the selection of Croatian Audio Visual Centre (HAVC) members, their powers, and defines more clearly the funding of HAVC's operation, funding granted under the national programme for the development of audiovisual services and funding for the promotion of investment in the production of AV material.

To prevent possible conflicts of interest, the institution of a deputy member of the Audiovisual Council has been introduced.

Grants for shooting films in underdeveloped Croatian regions will be made available.

Text: Hina

News | Plenkovic Andrej