VAT Croatia Guide

Croatia, a vibrant country with a growing economy and a strategic position along the Adriatic Sea, is an increasingly attractive destination for businesses looking to expand into new markets. To make a success of any expansion, though, it's essential to have an understanding of the local VAT (Value Added Tax) regulations.

Updated October 2026: Updated the 2026 Intrastat thresholds and added sections on Fiscalisation 2.0 reporting and eRačun rules for foreign businesses.

What is the Croatian VAT rate?

VAT is known as Porez na dodanu vrijednost (PDV) in Croatia. The standard Croatian VAT rate is 25%, with two reduced rates of 13% and 5% for specific categories of goods and services. Croatia also has a 0% VAT rate.

Registering for VAT in Croatia

Since 1 January 2025, businesses based in Croatia must register for VAT once their taxable supplies exceed €60,000 in the previous or current calendar year. They must then charge and remit VAT on taxable supplies. For non-resident businesses, there is no threshold that must be reached before they are required to register for VAT. 

The distance selling threshold for businesses in the EU is set at €10,000. If your annual cross-border sales to Croatia exceed this amount, or if you store products in the country or participate in a fulfillment program like Fulfilled-by-Amazon (FBA) involving Croatia, VAT registration is necessary.

Applications for VAT registration can be made at the Croatian Tax Administration. They should be submitted by post and include all relevant documents requested by the tax authorities. Once the application has been received, it usually takes no more than two weeks to receive a Croatia VAT number.

Fiscal representative in Croatia

Non-EU businesses selling in Croatia must appoint a fiscal representative. This representative is jointly responsible for the company’s Croatian VAT compliance. 

Croatian VAT return filing and penalties

In most cases, monthly filings are required in Croatia. Businesses with an annual turnover below €105,000 and no intra-community acquisitions can file quarterly returns. Filings must be made electronically via the e-Porezna portal.

Since 1 January 2026, Croatia VAT returns are due by the last day of the month following the reporting period. VAT payments are due by the same day.

Penalties include fines of between €265 and €66,400 for late VAT returns, while late payment incurs interest of 5.89%. 

Is e-invoicing mandatory in Croatia?

Yes, for businesses established in Croatia. Under Fiscalisation 2.0, VAT-registered businesses have exchanged structured e-invoices (eRačun) with each other since 1 January 2026. Both the issuer and the recipient must fiscalise each e-invoice with the Tax Administration.

Croatian businesses that are not VAT-registered must also issue e-invoices from 1 January 2027. Foreign companies with only a Croatian VAT number and no fixed establishment fall outside the eRačun obligation, according to the Croatian Tax Administration.

What does Fiscalisation 2.0 require in Croatia?

Fiscalisation 2.0 means each B2B e-invoice (eRačun) is reported to the Tax Administration by both the sender and the receiver. A PDF sent by email is not an eRačun, and email cannot be used to exchange eRačun at all.

• Fiscal message: it includes the invoice date and number, the parties, each item with its KPD product code, the taxable amount, VAT, and the issuer's bank account number.
• Extra reports: recipients report rejected invoices. Issuers report unpaid invoices.
• eIzvještavanje: if the buyer cannot be found in the Tax Administration's digital directory (AMS), the seller reports the sale through eIzvještavanje instead.
• Free tool: small businesses can use MIKROeRAČUN, a free application inside the ePorezna portal.
• B2C: since 1 January 2026, flat-rate craftspeople paid into a bank account must fiscalise their invoices to consumers.
• Input VAT: the right to deduct depends on receiving the invoice, not on the date it is fiscalised.

From 1 January 2027, Croatian businesses outside the VAT system must also issue and fiscalise eRačun, according to the Croatian Tax Administration.

Do foreign businesses need to use eRačun in Croatia?

Usually not. A foreign company with only a Croatian VAT number, or only a branch or fixed establishment, is not treated as an eRačun issuer or recipient.

• Foreign suppliers with only a Croatian VAT number that charge Croatian VAT are exempt from fiscalisation.
• Sales to customers in other EU countries or outside the EU are not domestic, so they generally fall outside eRačun.
• Croatian customers will still expect correct VAT invoices, and they must meet normal invoicing rules.

This may change under the EU ViDA package. Digital reporting of cross-border B2B transactions starts on 1 July 2030, and single VAT registration rules widen from 1 July 2028.

Croatian Intrastat declarations

Businesses exceeding specific sales thresholds need to submit Intrastat returns in Croatia. For 2026, the threshold is €450,000 for arrivals and €300,000 for dispatches. Intrastat declarations should be filed by the 15th of the month following the reporting period. Non-compliance can result in fines.

Reverse charge in Croatia

The reverse charge mechanism in Croatia transfers VAT responsibility from the supplier to the recipient for certain goods and services. This mechanism is widely used for intra-community acquisitions as well some domestic supplies, with VAT accounted for in the recipient’s VAT return.