Legal regulations for ecommerce

What are the legal regulations for ecommerce and online shopping? Can you use third-party services, so-called dropshipping, while warehousing? When working with clients, we often receive inquiries about the legal regulations of storage rental and online shopping. The answer is yes – third-party services are permitted and legally regulated. In this blog, we have summarized the announcement of the Croatian Chamber of Trades and Crafts and the most important links where you can find all the details.

Legal regulations for e-commerce – the most important information

The Croatian Chamber of Trades and Crafts really succeeded in summarizing the most important things related to the first step – registration of a business entity and registration of activities. Furthermore, they briefly explained the legal regulations for doing business via the Internet, the minimum technical requirements, and everything related to accounting and finance. They accompanied the text with important information that you can find via links in the text. Read the details below, and you can access the publication via the following link.

Registration of a business entity and activity

If you are just opening a business, you are required to register activities related to Internet sales. However, if you already have an open trade, it is necessary to re-register your activities in the trade register. In both cases, the request is submitted to the County Economic Service (locally responsible for trade operations).

 

In this specific case, it is necessary to register the following activities:

47.91 – RETAIL TRADE BY MAIL OR ON THE INTERNET

63.99 – OTHER INFORMATION SERVICE ACTIVITIES, D. N.

 

Other important activities are:

• Group 47.9 (retail trade outside stores, stands, and markets);
• Section 47 (retail trade, except trade in motor vehicles), – “purchase and sale of goods” – in the case of dropshipping  
• 47.99 Other retail trade outside shops, stands, and markets.

 

Legal regulation for ecommerce and internet business

Online shopping is regulated by various laws and regulations. Below we have selected the most important ones, but it is important to know that they vary depending on the activity.

1. Consumer protection law (we highlight: defining the General Terms and Conditions of Business – essential in the case of inspection and proving fair business practices);
2. Law on electronic commerce (we highlight: consent for cookies);
3. Law on Alternative Resolution of Consumer Disputes;
4. Law on Electronic Communications;
5. Law on Obligatory Relations (we highlight: material defects and warranty);
6. Trade law (we highlight: minimum technical requirements);
7. GDPR (privacy rules, consent).

NOTE: depending on the activity, the online retailer may be subject to other regulations (e.g. GDPR)

Minimum technical requirements

You need the minimum technical conditions if you trade goods wholesale or retail. In that case, you also need storage.

You do not need the minimum technical requirements if:

• you already have a retail store and an MTU for it (use an existing MTU);
• you produce and distribute only digital content that is not delivered/printed on any physical media (CD, DVD, USB, micro SD, etc.). Since you don’t need storage, you don’t need MTU either;
• for intermediation in online sales (dropshipping), unless it involves the manipulation of goods (repackaging) and price calculation by the trader. The ordered goods must go directly from the supplier to the customer’s address;
• you offer only services and not goods via the Internet;
• for storage and delivery use the services of a fulfillment agency.

Read more detailed information about MTU in our blog MTU for tradesmen: key information.

Accounting

When it comes to accounting, pay attention to three documents:

1. Law on Fiscalization in Cash Transactions
2. Opinion of the Tax Administration – taxpayers of fiscalization
3. Opinion of the Tax Administration – taxation of online sales with VAT

You can find more detailed information on legal regulations for ecommerce in the brochures Guide to conducting trade activities via the Internet and Conditions for conducting trade activities. For any additional information, feel free to contact us.