The New Year often marks not just the symbolic beginning of a new chapter but also actual transformations. This is also the case for the year 2024, which saw the […]Read in: 5 min
A guide to VAT registration in Croatia
- Last update: 23.02.2024
- Published: 14.09.2023
- Read in: 4 min
VAT, or value added tax, stands as a fundamental element within the economic framework of all European Union nations. Just like in each member state, Croatia also has formalities for VAT registration. They include obeying the VAT registration procedure or applying Croatian VAT registration submission, that are unique to Croatia. If you’re wondering about the when and how to carry out this process, the following article has the details you need, so let’s dwelve into the details of Croatian VAT registration.
From this article you will find Croatian VAT registration information such as:
- What is the standard VAT rate in Croatia and what are the reduced rates?
- Who is required to register for VAT in Croatia?
- What does the VAT registration process Croatia looks like?
- At which office is it possible to complete the VAT registration process in Croatia?
- Which documents meet the VAT registration requirement in Croatia?
- What is the format of the Croatian VAT number?
- What obligations will a VAT payer in Croatia face?
VAT tax Croatia - Croatian VAT rates
According to the EU VAT regulations, the standard VAT rate in any member state can not be lower than 15%, but eventually its amount is regulated by the national legislation.
The standard VAT rate Croatia has established is 25%. However, aside from that, there are also applicable reduced rates.
13% VAT rate & 5% VAT rate
In Croatia the standard VAT rate is accompanied by the 13% VAT rate and 5% VAT rate. Aside from these, there is also an applicable zero rate.
For detailed insights into these rates and the categories of goods and services falling under each, check out our article titled – “What is the VAT rate in Croatia?“
When is it mandatory to register for VAT in Croatia?
In Croatia, just like in any other EU nation, registering for Croatian VAT becomes compulsory when an entrepreneur:
- sells products and offers services within Croatia,
- imports and exports merchandise to and from third-party nations,
- warehouses goods within Croatia and dispatches them to recipients in other European Union member states,
- imports goods into Croatia from other EU nations,
- conducts intra-Community distance sales of goods surpassing the total value of EUR 10,000.
The final point refers to the intra-community CTS limit, active since July 1, 2021. This limit establishes a threshold for all sales made by a specific company to individual customers within the European Union. Once this threshold is exceeded, starting from the transaction that surpasses it, businesses are required to register and manage VAT in the buyers’ countries for their goods and services. Alternatively, they can opt for the VAT OSS procedure, enabling the settlement of all VAT on B2C intra-Community sales within a single combined declaration.
Need help with VAT or e-commerce accounting?
Contact us and check how our VAT Compliance specialists can help you with registration, settlements, declarations, VAT OSS and VAT EU!
In our VAT Compliance offer you will also find VAT registration services Croatia!Schedule a consultation
The VAT registration process in Croatia - VAT registration guide
VAT registration process Croatia’s law demand to acquire a VAT number, takes place at the local Croatian tax office based on the company’s operational city, for example Zagreb, it will be:
Director General of the Tax Administration Božidar Kutleša, Boškovićeva 5, Zagreb.
Non-EU companies aiming to register for VAT in Croatia must fulfil an additional requirement of appointing a tax representative to manage the entire registration process. Conversely, companies from EU member states have the option, though not mandatory, to designate a tax representative if they wish.
Required documents for VAT registration in Croatia
To register for VAT in Croatia, the entrepreneur must have completed registering for EU VAT, submit the P-PDV – VAT registration form Croatia’s authorithies use – along with delivering a specific set of essential documents, including:
- Croatian VAT number application (OIB),
- VAT certificate proving VAT registration in another EU nation, translated into Croatian,
- Recent 6-month extract from the national commercial register, also translated into Croatian,
- A statement outlining the motives behind VAT registration,
- Articles of association.
Croatian VAT number - Croatia VAT ID
The format of the Croatian VAT number is the prefix HR followed by 11 digits.
VAT taxpayer and their VAT obligations in Croatia - VAT returns Croatia
Upon completing the Croatian VAT registration procedure and receiving a Croatian VAT registration number, entrepreneurs encounter specific VAT payer obligations, namely settling VAT payments and submitting VAT declaration Croatia’s legistaltion require.
VAT returns filling and reporting frequency
There’s a deadline of the 20th of the subsequent month following the accounting period for entrepreneurs to settle and submit VAT returns. Typically, this is on a monthly basis, unless the company’s yearly turnover remains under EUR 100,000. In such cases, the company has the choice to file returns quarterly.
Moreover, entrepreneurs unwilling to handle local VAT returns can opt for VAT OSS. Yet, this method excludes goods warehousing, which necessitates local declaration.
VAT registration Croatia - Croatian VAT Guide - summary
VAT registration is a universal requirement in EU member states. Entrepreneurs who conduct transactions—like exceeding the EUR 10,000 threshold for intra-Community distance sales to Croatian private contractors or storing goods in Croatia—are obligated to acquire Croatian VAT registration number. In order to do that, firstly, one has to submit VAT application form and deliver required VAT registration documents. After that, when the Croatian VAT number is given, entrepreneurs have a duty to fulfill VAT obligations concerining filling VAT returns and applying Croatian VAT rates.
However, for B2C sales specifically, avoiding VAT registration is possible by utilising the VAT OSS procedure. Since each situation is unique, consulting a specialist is recommended for personalised advice.
If you require any assistance with VAT related matters, don’t hesitate and schedule a free consultation and our VAT Compliance specialists will handle the rest. Whether it’s VAT registration, VAT settlement issues, submitting VAT returns, VAT OSS or VAT EU.