CROATIA

CROATIA (PDV)

Croatia being an EU member state falls under the EU VAT regime. Member states must adopt EU VAT Directives into their own legislation.

Standard VAT Rate: 25%

Reduced VAT Rate: 13%, 5%

Registration Threshold Distance Selling: HRK 270,000 (Approx. EUR 36,000)

EU VAT number format: HR 123 456 789 01

Registration Threshold 

Resident - HRK 230,000 (approx.EUR 30,600)                               
Non resident - There is no registration threshold                                   
IC Acquisitions - HRK 77,000 (approx.EUR 10,000)

VAT Registration

To apply for VAT registration, businesses must send an application for registration for value added tax purposes to the Croatian VAT authorities. Businesses that are established outside of Croatia are obliged to register for VAT if they perform taxable activities in Croatia. In the case of distance sales to private individuals from Croatia, the company needs to register once the threshold of HRK 270,000 (Approx EUR 36,000) is exceeded.

VAT Compliance

Detailed rules regulate reporting requirements of Croatian transactions for Value Added Tax purposes. These include: invoice requirements, timeliness for an invoice to be issued, invoice and credit notes corrections rules, foreign currency reporting requirements and exchange rate sources, correction of previously submitted returns and accounting records that must be maintained for VAT purposes. 

VAT Returns

VAT returns can be made either Monthly or Quarterly and Annually.

• VAT returns must be submitted on a monthly basis if the value of their supplies (including VAT) in a calendar year exceeds HRK 800,000 (approx. €106,000)
• VAT returns must be submitted on a quarterly basis if the total value of supplies (including VAT) is below HRK 800,000 (approx. €106,000)
• Taxable persons must also submit an Annual VAT return. The Annual VAT return is used for reconciliation purposes.

The filing deadline for the VAT returns is the 20^th day of the month following the taxable period to which the supply relates. The filing deadline for the Annual VAT declaration is the end of February following the previous calendar year.

Intrastat

The Intrastat discloses details of movements of goods between Member States which take place for commercial reasons, recording the movement whenever goods enter the territory of Croatia from other Member States or leave it to other Member States. Declaration must be filed monthly once the annual threshold is exceeded.
Intrastat declarations can be submitted online. The due date for submission is the 15th day of the month following the reference period.

The Intrastat threshold for 2013 for arrivals and dispatches is HRK 1,700,000 (approx. EUR 226,670).

EC Sales Lists

Taxable persons who are registered in Croatia and supply goods or services to taxable persons in other EU member states must submit a summary declaration. The summary declaration shall be submitted in electronic form no later than the 20th day of the month following the end of the accounting period.