VAT Croatia Guide

Read our guide and find out everything you need to know about VAT in Croatia, from registration to filing, and more.

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.

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.

Type of VAT	VAT Rate	Applicable Goods/Services
Standard VAT	25%	All other taxable goods and services.
Reduced VAT rate (1)	13%	Includes certain foodstuffs, non-daily newspapers, periodicals, hotel accommodation, cafes, restaurants, concert tickets, water supplies (excluding bottled water), and electricity supplies.
Reduced VAT rate (2)	5%	Includes some foodstuffs (bread and milk products), books (including e-books), medicines (prescribed by a doctor), some medical equipment, cinema tickets, daily newspapers, and scientific periodicals.
Zero rate VAT	0%	Intra-community and international passenger transport (not including rail and road).

Registering for VAT in Croatia

Businesses based in Croatia with an annual turnover exceeding €40,000 must register for VAT and begin charging and remitting 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.

Croatia VAT returns are due by the 20th of the month following the reporting period, with VAT payments due on the last day of the month of the same reporting period.

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

Croatian Intrastat declarations

Businesses exceeding specific sales thresholds need to submit Intrastat returns in Croatia. The threshold is €400,000 for arrivals and €200,000 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.

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