EU VAT REGISTRATION - VAT CROATIA
EU VAT registration in Croatia
Croatia introduced VAT under the Value Added Tax Act on 1 January 1998. Croatia thus adopted the taxation system that was already present in the EU Member States. Over the years, the VAT system has undergone several changes. In the beginning, the system was known as a flat rate VAT system with only one VAT rate of 22%. The following year, a zero tax rate was introduced for several products with a broad consumption (e.g. bread, milk, scientific books, medicine, etc.) After Croatia joined the EU in July 2013, Directive 2006/112 / EC was incorporated into the national system VAT.
VAT registration in Croatia for companies:
Foreign companies can register for VAT in Croatia without having to set up a local company, i.e. you can register as a non-resident. The mandatory threshold for VAT registration in Croatia for resident companies is HRK 270,000 (approximately EUR 36,291). When this threshold is exceeded during the tax year, the company is required to submit an application for registration by January 15 of the following year. The enterprise may, if it wishes, voluntarily submit an application based on the expected turnover. Enterprises that supply goods or services in Croatia without registration and who have their permanent residence or habitual residence in Croatia will be treated as Croatian VAT payer – unless the Croatian customer is required to calculate and pay VAT himself (i.e. if applicable reverse charge mechanism). This rule also applies to a foreign company that purchases goods in Croatia and makes further deliveries in Croatia. The foreign company is then required to register for VAT purposes and may appoint a tax representative. On the other hand, non-EU residents who are required to register VAT in Croatia must appoint a tax representative. If you know that you need to register VAT in Croatia, do not hesitate and contact us and we will help you.
When is VAT registration in Croatia required?
How can I register VAT in Croatia?
The application for VAT registration must be completed via the website of the public administration in Croatia (Agencija za zastitu osobnih podataka). Foreign taxpayers who do not have a permanent place of residence or permanent establishment in Croatia, receive a Croatian VAT number only if they apply for it separately and if they supply goods or services in Croatia. The VAT application form must contain the reasons and a detailed description of the taxable transactions in Croatia. Companies based in the EU can register directly with the Croatian tax authorities or they can use a tax representative. Non-EU companies, however, are required to register through a tax representative.
What documents do we need for VAT registration?
In order to register a foreign company for VAT purposes in Croatia, we need the necessary documents to do so. These are usually such documents as:
⇒ OIB – Personal Identification Number Assignment Form;
⇒ a VAT certificate confirming that the company is registered as a VAT taxpayer elsewhere in the EU (the document cannot be older than 3 months);
⇒ Company status;
⇒ a copy of the extract from the commercial register.
If you need help with the registration, please do not hesitate and contact us.
Do you have any questions about VAT registration in Croatia?
Do you have any questions about the Croatian VAT registration for your company? Not sure if your company must be registered for VAT in Croatia? If so, contact us via our contact form.
|Local VAT no.||HR + 11 characters|
|Mail order threshold||36 291 € netto yearly|
|Submission of VAT returns||monthly and quarterly (by the 20th day of the following month)|
|Waiting time for registrations||Up to 2 months|
|Standard VAT rate||25%|
|Reduced VAT rate||13% 5%|
|European Union Member State||yes, since 2004|