VAT in Croatia – a complete guide. Rates and registration thresholds | VAT in Europe #23

The Value Added Tax was introduced in Croatia in 1995. As a member of the EU (which Croatia joined on July 1, 2013), local compliance with VAT (registrations, declarations, Intrastat, ESL-s) is in line with EU VAT directives.

VAT in Croatia considers European laws as its own legislation. The Ministry of Finance authorizes the Croatian Tax Administration (CTA) to manage VAT.

National VAT regulations apply to foreign companies referred to as ‘non-residents.’ Supplying goods or services in Croatia (both to local businesses and consumers) may require mandatory registration for Croatian VAT purposes. To operate in this country, owners of foreign companies are required to:

• comply with Croatian VAT regulations,
• invoice,
• pay the due Croatian VAT.

Should you register for VAT in Croatia?

In certain trading scenarios, registering a foreign company with the local tax office is necessary. This aligns with the general principles of EU VAT and includes, among other things:

• importing goods to Croatia (when customers are not Croatian companies with locally registered VAT),
• buying and selling goods within the country (when the customer is not a Croatian company with locally registered VAT – in this case, reverse charge applies),
• storing goods in consignment warehouses for over three months,
• hosting paid live events, exhibitions, and training sessions,
• selling online to Croatian and other EU consumers after reaching 10,000 euros in turnover.

Is a Croatian fiscal representative or agent required?

According to the EU VAT directives, a local fiscal representative or agent is not required by a company located in another EU member state. A resident of the EU can register directly with the Croatian tax office. However, a fiscal representative, who is jointly responsible for Croatian VAT, is necessary for companies from outside the EU.

What information is required to obtain a Croatian VAT number and registration?

The Croatian Tax Office needs these forms:

• OIB for a personal identification number
• P-PDV for VAT registration.

The forms must be submitted along with, among others, the following documents:

• VAT certificate to prove the business is registered for VAT elsewhere in the EU (not more than 3 months old, translated into Croatian and in original form), if appropriate,
• articles of association,
• an extract from the company’s national trade register (not more than 6 months old, in original form and translated into Croatian,
• a letter on headed notepaper from the company explaining the reasons for registration.

Where are Croatian VAT registrations submitted?

Foreign companies seeking a Croatian VAT number must send their application by mail to the designated regional office at least 8 days before starting trading

What is the format of the Croatian VAT number?

The Croatian VAT number, unique to Croatia, is assigned to companies within 8 days of submitting the registration application. Each EU member state has its own format for VAT numbers. The Croatian number starts with the prefix HR followed by 11 digits.

Country code: HR

Format: 12345678901

Number of characters: 11

Rates of VAT in Croatia

RATE	TYPE	TYPE OF GOODS OR SERVICES
25%	standard	all goods and services not covered by the lower VAT rate,
13%	reduced	some foodstuffs, water supplies (excluding bottled water), newspapers (other than daily newspapers with advertising content below 50%), magazines (other than scientific magazines with advertising content below 50%), concert tickets, accommodation in hotels, café, restaurant, and hotel services (excluding alcohol), certain agricultural production means, some funeral and cremation services, child car seats, electricity supply, some writing and composing services, certain domestic waste collection methods,
5%	reduced	some food products (including bread, milk, and infant formulas), pharmaceutical products (only prescribed medicines approved by a doctor), certain medical devices, books (including e-books), daily newspapers (containing less than 50% advertising content), scientific journals,
0%	zero	intra-Community and international transportation (excluding road and rail). accommodation in hotels.

Similar VAT rates apply in Portugal and Greece – read more about them.

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