Croatia VAT Information: rates, registration number

Goods

Tax rate

25%

Reduced VAT rate

5%:

All types of bread and all types of milk (cow, sheep, goat) placed on the market under the same name in the liquid state, fresh, pasteurised, homogenised, condensed (other than sour milk, yoghurt, kefir, chocolate milk, and other milk products), substitute for mother’s milk.

13%:

Edible oils and fats of vegetable or animal origin, baby food and processed cerealbased food for infants and young children, and food for animals other than pet food, live animals, fresh or chilled meat and edible offal, fresh or chilled fish, mollusks, or other aquatic invertebrates, fresh or chilled crustaceans, fresh and dried fruit and nuts, fresh or chilled vegetables, roots, and tubers, including dried leguminous vegetables, fresh poultry eggs in the shell.

Threshold

Before the entry of the new rules of the year, the threshold of 35 thousand euros was in effect in Croatia; from July 1, 2021, the threshold was reduced to 10 thousand euros.

Deductible VAT

You can deduct VAT on the following transactions:

Internal deliveries of goods or services and operations, or equivalent to them
Purchase of goods and transactions within the EU, or equivalent to them
Import of goods

Registration procedure

To register, you must send a completed application form for assigning a VAT number. Additionally, it is necessary to attach an extract from the commercial register; a notarized power of attorney, if the application is submitted by an agent. The documents must be translated into Croatian.

Tax representative

Taxpayers whose headquarters are located outside the European Union must appoint a tax representative

VAT returns filing and VAT payment date

Declarations must be submitted and the VAT due must be paid on a monthly basis.

The VAT due should be paid by the last business day of the month following the accounting period.

Periodic VAT declarations must be submitted through the portal “Eporezna” by the 20th day of the month following the reporting period

Penalty

For late filing of the VAT declaration, late payment of VAT, and errors made in VAT declarations, a fine in the amount of 1,000 to 500,000 Croatian kuna may be imposed.

Digital services

VAT Standard rate

25%

Threshold

The registration threshold is 10 thousand euros, approximately 77,000 Croatian kuna.

Pieces of evidence:

Physical location – applies if it is necessary for the customer to be physically located to receive the service, for example at a hotel wifi hotspot.

Additional indicators – SIM card, decoder. A device that is sent to someone.

For an accurate definition, it is necessary to establish two pieces of evidence

E-services list

Registration with MOSS is carried out through the web portal of the tax agency. It is necessary to fill out a questionnaire specifying basic information about the company.

Croatian VAT Law considers the following services to be provided electronically:

website delivery, website hosting
remote maintenance of programs and equipment, delivery of computer software
the supply of music, films and games, the broadcast of various, including political, cultural, sports, scientific, and entertainment programs and events, as well as distance or distance learning

Registration procedure

Registration with MOSS is carried out through the web portal of the tax agency. It is necessary to fill out a questionnaire specifying basic information about the company.

Keeping records

The rules require you to keep the documentation for 10 years.

Filling VAT returns and VAT payment date

VAT declaration and payment must be made before the 20th day of the month following the reporting quarter.