EU VAT registration - VAT in Croatia

General Information:

Croatia introduced VAT under the Value Added Tax Act on 1 January 1998. Croatia thus adopted the taxation system that was already present in the EU Member States. Over the years, the VAT system has undergone several changes. In the beginning, the system was known as a flat rate VAT system with only one VAT rate of 22%. The following year, a zero tax rate was introduced for several products with a broad consumption (e.g. bread, milk, scientific books, medicine, etc.) After Croatia joined the EU in July 2013, Directive 2006/112 / EC was incorporated into the national system VAT.

VAT registration in Croatia for companies:

Foreign companies can register for VAT in Croatia without having to set up a local company, i.e. you can register as a non-resident. The mandatory threshold for VAT registration in Croatia for resident companies is HRK 270,000 (approximately EUR 36,291). When this threshold is exceeded during the tax year, the company is required to submit an application for registration by January 15 of the following year. The enterprise may, if it wishes, voluntarily submit an application based on the expected turnover. Enterprises that supply goods or services in Croatia without registration and who have their permanent residence or habitual residence in Croatia will be treated as Croatian VAT payer – unless the Croatian customer is required to calculate and pay VAT himself (i.e. if applicable reverse charge mechanism). This rule also applies to a foreign company that purchases goods in Croatia and makes further deliveries in Croatia. The foreign company is then required to register for VAT purposes and may appoint a tax representative. On the other hand, non-EU residents who are required to register VAT in Croatia must appoint a tax representative. If you know that you need to register VAT in Croatia, do not hesitate and contact us and we will help you.

When is VAT registration in Croatia required?

⇒ imported goods sent to the European Union via Croatia;

⇒ purchase and sale of products in Croatia;

⇒ warehousing goods in Croatia;

⇒ sale of goods from Croatia to other EU countries;

⇒ sending goods between and to another EU member state (intra-Community supplies)

⇒ organization of live events (conferences related to art or education) in Croatia;

⇒ own delivery of goods.