A number of VAT compliance changes will be introduced in Croatia in 2015. These will include:
Cash-based accounting – Instead of offering accruals accounting, Croatia will offer cash-based accounting. Businesses will pay or charge VAT when there is a case/bank settlement of an invoice. Companies with an annual turnover below HRK 3m can request to be apart of this new regime.
VAT on immovable property – In order to be more in line with the EU VAT directive, the supply of building will become VAT exempt.
2015 MOSS changes – From 1 January 2015, when supplying electronic, broadcast or telecoms service, it will be the Croatian taxable supplier’s responsibility to charge VAT, as opposed to the Croatian VAT rate being charged.