VATupdate

Croatia rehauls tax system in 2021; cash accounting, imports and distance selling

The threshold for the application of the VAT cash accounting scheme has been increased from the previous HRK 7.5 million to a new threshold of HRK 15 million.

The possibility of applying the calculation category of VAT on imports in order to relieve the taxable persons in terms of engaging financial resources for the payment of VAT on imports has been extended.

When the distance selling of goods exceeds the threshold of HRK 77,000, the sale will be taxed in the Member State in which the recipient of the goods who is not a taxable person has residence. Additionally, the foreign taxable person will pay the Croatian VAT when the total value of distance selling of goods, telecommunications services, radio and television broadcasting services and electronically performed services exceeds the threshold of EUR 10,000 and vice versa, Croatian taxable persons will pay VAT in another Member State when the value of these supplies exceeds the threshold of HRK 77,000. The above is applicable as of 1 July 2020.

Source: eurofast.eu

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