VAT in Croatia guide

VAT rates

The term “taxable supply” refers to supplies of goods and services that are liable to any of the VAT rates, including supplies that are exempt with the right to deduct input VAT.

The following are the VAT rates in Croatia:

• Standard rate: 25% (reduced to 24% from 1 January 2020)
• Reduced rates: 13% and 5%

The standard rate of VAT applies to all supplies of goods or services, unless a specific measure provides for a reduced rate or exemption.

Croatian VAT for digital service providers

In case of digital services, telecom services or broadcasting services supplied in a B2B context, the place of supply is the place where the recipient is established. No Croatian VAT should be charged, and reverse charge applies unless supplier and customer are established in Croatia. In case of digital services, telecom services or broadcasting services supplied in a B2C context we refer to the section on the Mini One-Stop Shop below for more information.

Mini One-Stop Shop

The optional simplification measure called the “Mini One-Stop Shop” (MOSS) with respect to digital services, telecommunication services and broadcasting services supplied in a B2C context. The supply of these services is generally considered as taking place in the Member State of the customer, not the Member State of the supplier.The MOSS scheme allows all taxable persons supplying digital services, telecommunication services or broadcasting services to nontaxable persons in EU Member States in which they do not have an establishment, to account for the VAT due on those supplies via a web portal in the Member State in which they are identified. The MOSS allows qualifying taxable persons to avoid registering in each Member State of consumption. The MOSS simplification is available both for taxable persons established in the EU and outside the EU. The MOSS generally mirrored the scheme that was in place for non-EU established suppliers of electronically supplied digital services, telecommunication services or broadcasting services supplied to final consumers. Persons already registered under the pre-existing scheme for electronically supplied digital services, telecommunication services or broadcasting services, should retain their existing individual VAT identification numbers for the purposes of the MOSS.

Late – registration penalties.

Penalties for non-registration range between HRK1,000 and HRK200,000 (approximately EUR 135 and EUR 26,300) for the company and between HRK500 and HRK40,000 (approximately EUR 66 and EUR 5,300) for the responsible person within the company.