US Individual income tax return. Accountant working with US tax forms
ACCOUNTING ACT
The draft amendment of the accounting act set to take effect on 1 January 2020 primarily involves changes to the conditions under which audits become mandatory for ordinary and extraordinary individual financial statements. The proposal is to increase the financial limit for an accounting unit’s total assets from EUR 1,000,000 to EUR 2,000,000 and in the case of net turnover from EUR 2,000,000 to EUR 4,000,000. Parliament anticipates that such change will have a positive impact on the administrative burden faced by business entities.
eKasa
Effective 1 July 2019, the Financial Authority has rolled out the new “eKasa” system, to which all businesses are required to connect. Electronic cash registers, referred to locally as “ERP” are set to become online cash registers, or “ORP”. In connection with such change, the term cash register no longer is limited to the classic electronic cash register; rather, it now includes devices from mobile phones and computers to tablets and virtual cash registers (VRP).
Online cash registers may be original electronic cash registers of fiscal electronic cash registers. These will require an on-line connection to the Financial Administration for use after 1 July 2019.
A virtual cash register is a service established by the Financial Directorate that communicates via a terminal device and that is provided exclusively through a mobile application owned by the Financial Directorate and a client environment established by the Financial Directorate on its website.
All entrepreneurs are required to have an online connection to the new system, meaning the option for voluntary connection to the Financial Administration’s system via a virtual cash register has expired as of July 2019. Entities were required to register the new system from 1 April 2019 to 30 June 2019.
Roll-out schedule:
Virtual cash register users will continue to use virtual cash registers. Entrepreneurs are permitted to use electronic cash registers from 1 January 2019 to 1 July 2019.
The transitional period is from 1 April 2019 to 1 July 2019 and full transition to online cash registers takes place effective 1 July 2019.
