Archives for Salary

EU VAT CHANGES FOR 2015

The measure allows the countries of the EU membership to apply the reverse charge mechanism for a limited period of time with specific conditions also to be taken under consideration. All of this represents a faster procedure..

More specifically, this new directives apply to digital services (everything that can be downloaded or used online)

The area of sectors where this mechanism can be taken to action is broader and it includes also mobile pones, integrated circuit devices, supply of gas and electricity, telecom services, game consoles, tablet PCs and laptops, cereals and industrial crops and raw and semi-finished materials.

As a seller on the market you are responsable to pay the buyers VAT based in their own country (this means any EU country) nevertheless whether you are an EU based company or not. This new directives are not quantitiy and price aware so by selling one ítem for less than a dollar, new legislature will rules are still being applied.

You are also obliged to store buyers information (their location etc.) for the next 10 years after the deal was executed.

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FUNDAMENTAL ACCOUNTING

In order to prepare the financial statements, it is important to adhere to certain fundamental accounting concepts. Going Concern, unless there is evidence to the country, it is assumed that a business will continue to trade normally for the foreseeable future.

Accruals and Matching, revenue earned must be matched against expenditure when it was incurred Prudence, if there are two acceptable accounting procedures choose the one gives the less optimistic view of profitability and asset values. Consistency, similar items should be accorded similar accounting treatments. Entity, a business is an entity distinct from its owners. Money Measurement, accounts only deal with items to which monetary values can be attributed.

Helps existing and potential investors and creditors and other users to assess the amounts, timing, and uncertainty of prospective net cash inflows to the enterprise

Separate Valuation each asset or liability must be valued separately.
Materiality, only items material in amount or in their nature will affect the true and fair view given by a set of accounts. Historical Cost, tTransactions are recorded at the cost when they occurred. Realization, revenue and profits are recognized when realized. Duality, every transaction has two effects.

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