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Croatia

 

News & Tips

Local reverse charge in the construction sector [Tip]

The reverse charge procedure also applies to the supply of construction work made between two Croatian taxable persons. This means that when a Croatian taxable person receives this service, he should account for VAT applying the reverse charge mechanism even if the supply is made by a Croatian taxable person.


EU Purchase listing [Tip]

An EC acquisition list [report containing all information on the value of IC acquisitions of goods and services] must be filed by the 20th day of the month following the end of the accounting period [month]. Corrections to prior reports must be made by filing a new statement for the period to which the original supplies relate.


Annual VAT return is no longer required

As from 01/01/2015, filing annual VAT return [PDV-K form] is no longer required.

More VAT News & Tips - Croatia


 DOING BUSINESS IN CROATIA [HR] - VAT GUIDE

 

General

VAT Directive

Croatia

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

 Croatian VAT numbers have 13 characters [HR + 11 digits].

 

What is the local name of the tax?

 

Porez na dodanu vrijednost [PDV]

 

VAT rate

VAT Directive

Croatia

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Croatia applies a standard VAT rate of 25% and two reduced VAT rates: 5% and 13% [10% before 01/01/2014].

 

See VAT rates applied in the EU.  

VAT return

VAT Directive

Croatia

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those ones do not exceed one year. 

Monthly

Your company has to report its VAT position by filing periodical VAT returns on a monthly basis [standard tax period].

Quarterly reporting period is not possible for non-established taxpayers registered for VAT in Croatia.

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Periodical VAT returns must be filed by electronic means via "ePorenza" to Croatian VAT authorities before the 20th day of the month [20 of N+1] following the accounting period [month] to which it relates.

Statement

VAT Directive

Croatia

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require  taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

As from 01/01/2015, filing annual VAT return is no longer required.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative Statement [ESL ] must be drawn up for each calendar month.

ESL should be filed by electronic means via "ePorenza" by the 20th day of the month after the end of the reporting period [month].

Filing the Statement on a quarterly basis is not possible.

Payment

VAT Directive

Croatia

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by the end [last working day] of the month following the accounting period.

Your company should pay the difference in VAT according to the annual VAT return by the deadline for the submission of the annual VAT return [by the end of February of the following year].

Are interim payments required?

Member States may require interim payment to be made.

Interim payments are not required.

VAT refund

VAT Directive

Croatia

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

 Where, for a given period, the amount of deductions exceeds the amount of VAT due, the taxable person is entitled to a refund or to carry forward the excess of the VAT paid forward to the following accounting period.

Where a taxable person applies for a refund of the excess of the VAT paid, the tax administration is obliged to refund the difference within 30 days from the date of submission of the VAT return but no later than within 90 from the day auditing procedure has been instituted.

 

Special measures for foreign companies

VAT Directive

Croatia

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable to all supplies of goods carried out by a taxpayer not established in Croatia provided the customer is a taxable person or a non-legal person but registered for VAT purposes and having a VAT identification number in Croatia.

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider. 

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable to all supplies of services carried out by a taxpayer not established in Croatia provided the customer is a taxable person or a non-legal person but who is registered for VAT purposes and having a VAT identification number in Croatia.

Have simplification measures been taken to avoid registration of the foreign company for the goods held on consignment in the country?

 

 No

Foreign companies are required to be VAT registered in Croatia.

 

Do special arrangements apply to "call-off-stock"?

 

 Yes

Special arrangements apply for call-off-stock. Foreign companies are therefore not required to be registered in Croatia provided the conditions are met.

 

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

 Triangulation regime ABC cannot be applied when the middleman B is also VAT registered in Croatia [Member State C]. Furthermore, the simplification measure can only operate in a classic triangulation situation. If there are more than three companies involved, the strict legal position will have to be respected and registration may be required in at least one other Member State depending on the precise circumstances.

 

VAT on import

VAT Directive

Croatia

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

 Croatia has introduced VAT warehousing regime applicable under specific conditions.

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

 Postponed accounting via the VAT return is not possible in Croatia. VAT on importation should be paid by the deadline stipulated for the payment of import duties in compliance with customs regulations.

 

Miscellaneous

VAT Directive

Croatia

Intrastat Threshold  

Dispatches: HRK 750.000

Arrivals : HRK 1.700.000

 

Distance Sales - Threshold  

 HRK 270.000

See various thresholds applied in the EU

 

Ministry of Finance    website

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