Country Guide: Croatia


Looking to expand your e-commerce business to Croatia, then look no further, here is AVASK's guide to VAT in Croatia:

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Country Profile: Croatia

Croatian E-commerce Market Facts:

Population 4.1 million
(January 2020)
Currency: Croatian Kuna (HRK)
Number of e-commerce users: 2.8 million (January 2020)
Revenue in e-commerce market: £416 million
Estimated market growth: 5.7% to £519 billion by 2024

Croatian Thresholds and Additional Summary

Distance Selling Threshold (DST) HRK 270,000
Intrastat Thresholds:

Dispatches:
HRK 1,200,000

Arrivals:
HRK 2,200,000

VAT number format: HR 12345678901
VAT return period:
Monthly filing
VAT return deadline 20th day of the month following period end
Annual VAT filing deadline: Not required
EC sales lists reporting Monthly

VAT in Croatia

Croatia is a member of the European Union (EU) and draws up its tax rules according to the laws or directives issued from Brussels by the EU. The current VAT directive applies to all 27 member states of the European Union, and it governs the rules on VAT compliance, and in some part, covers the setting of VAT rates.

As an EU member state, Croatia is obliged to implement the VAT directives, which provides guidance on VAT. Where there is a conflict, the European Union’s directive takes precedence. Croatia uses its own currency, the Croatian Kuna (HRK) and is in the process of applying to join the Eurozone, which should see the country adopting the Euro around 2023. In Croatia VAT is known as: Porez na dodanu vrijednost (PDV).


VAT registration in Croatia

Both EU and non-EU businesses may trade in Croatia without establishing a local presence. This is known as non-resident VAT trading. There is no VAT threshold in Croatia for the registration of non-resident traders, but you will need one to record transactions and your Croatian customers will want proof that you have obtained one.

There are strict rules on the situations where VAT registration is permitted. Common scenarios that require Croatian VAT registration include:

  • Importing goods into Croatia;
  • Organising live events, conferences, etc. in Croatia;
  • Holding goods in a warehouse in Croatia as stock for resale;
  • Buying goods within Croatia that are subsequently re-sold in-country;
  • Selling goods from Croatia to other EU member states;
  • Distance-selling to private individuals in Croatia, e.g. internet retailing or trading through an e-commerce platform.

Registering for Croatian VAT generally takes between two to four weeks once all documentation has been submitted to the tax authority, but this varies from seller to seller and will depend on the specifics of an individual company.

Croatian VAT compliance

There are detailed rules controlling the recording and processing of Croatian transactions for VAT purposes. This includes guidelines on:

  • Croatian invoice requirements;
  • When to issue a Bulgarian tax invoice;
  • Foreign currency reporting;
  • Credit notes and corrections;
  • Correcting entries from prior returns;
  • Which accounting records must be maintained.

Croatian VAT rates

VAT Rate % Rate
Standard Rate 25%
Reduced Rate 13%
5%
Zero Rate 0%

Read more about International VAT and Compliance:

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