VAT in Croatia

1. What is the VAT in Croatia?

The standard VAT in Croatia is calculated at a rate of 23%. A reduced rate of 10% applies for accommodation services, as well as printed newspapers and magazines. However, some goods or services may also be exempt from VAT in Croatia.

2. How can I get a VAT refund in Croatia?

VAT can be refunded in Croatia only if the claim is submitted by the company’s owner. If the entitled person cannot personally request the refund, he can appoint a legal representative by power of attorney in order for the representative to submit the claim to the Croatian Tax authorities, as well as enclosing the invoices for the period that the refund is claimed.

3. How can I register for VAT in Croatia?

Companies that register in Croatia and are issued a registration certificate may register for VAT purposes if they perform activities in commerce or services that are subject to VAT. However, in order to register for VAT in Croatia, the representative of the company should at first submit an application with the tax authorities. It is usually requested that a copy of the founder’s identification documents is provided with the application. The procedure is completed at the moment when the company obtains a VAT number. The VAT law in Croatia also mentions that foreign companies should register for VAT if they perform activities on the territory of Croatia. Besides, they should also hire a local representative that is a VAT payer in Croatia to take care of tax issues on behalf of the company. Mandatory VAT threshold is around 11,600 EUR in Croatia. The amount is available for all traders and if they expect the turnover to exceed this sum, they can also register for VAT in Croatia voluntarily.

4. How does intra-community VAT work in Croatia?

Croatia has not yet become a member state of the European Union, but there are some agreements between the country and the EU. However, Croatia was asked to adopt European standards in all that intra-community supply of goods means in order to be ready to fulfill all requirements for becoming a member state.

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