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