Croatia: Comprehensive VAT Country Guide (2026)

3. VAT Rates

3.1 Standard Rate (25%)

3.2 Reduced Rates (13% and 5%) – Examples

• 13% VAT Rate: Applies to accommodation and hotel services, restaurant and catering services (excluding alcohol), many basic foodstuffs, non-alcoholic beverages, bread and milk (some items), drinking water (supply via public systems), electricity supply to households, natural gas for heating, district heating, firewood and biomass fuels, newspapers and periodicals (with limited advertising content), concerts and cultural event tickets, certain agricultural inputs, and childcare essentials like baby diapers. (This list is not exhaustive – other items like coffin and urn supply, waste collection services, and specific artistic/copyright services also enjoy 13% VAT.) [vatcalc.com], [taxsummaries.pwc.com] [taxsummaries.pwc.com], [kreston.com]
• 5% VAT Rate: Applies to basic groceries and essential food products (e.g. bread, milk, butter, edible oils, and a range of fresh meats, fish, fruits and vegetables). It also covers prescription medicines and certain medical equipment, books and educational journals, cinema and theater tickets, concert and museum admissions, daily newspapers, baby formula and food, and a variety of other essential items (including certain seeds, fertilizers and animal feeds). [taxsummaries.pwc.com], [kreston.com]

3.3 Zero-Rated & Exempt Supplies

• Zero-Rated Supplies (0%): These include primarily cross-border or international services. For example, exports of goods outside the EU and intra-Community supplies (B2B sales of goods shipped from Croatia to a VAT-registered buyer in another EU country) are zero-rated (VAT is charged at 0%). International passenger transport services by air or sea (e.g. flights or ferry transport between Croatia and non-EU destinations) are zero-rated as well. Supplies of investment gold to central banks, and certain services related to international transport, vessels, and aircraft (e.g. maintenance services for aircraft used in international traffic) are also zero-rated. Furthermore, since 2022 Croatia introduced a new zero VAT rate on the supply and installation of solar panels on private residences and buildings used for the public good (e.g. schools, hospitals), as allowed by EU rules to promote renewable energy usage. Zero-rated supplies allow suppliers to claim input VAT credits related to those supplies. [vatcalc.com] [croatiavat…nce.online], [taxsummaries.pwc.com]
• Exempt Supplies (No VAT, No Credit): Croatia exempts (does not tax) various activities of public interest and certain specified financial or property transactions, without a right to deduct input VAT on related costs. Major VAT-exempt sectors include healthcare and medical services, education, social welfare services, financial and insurance services, postal services, lotteries and gambling, and the supply and rental of real estate (with certain exceptions). For example, standard medical and dental services, banking and insurance transactions, the sale of used real estate (after two years from first use), rental of residential property, and certain cultural and sporting services by non-profit organizations are exempt from VAT. In addition, passenger transport within Croatia (e.g. domestic public transport) is treated as VAT exempt (with no input credit) if not already zero-rated under the international travel rule. Businesses dealing exclusively in exempt supplies generally cannot register for VAT and cannot reclaim input VAT on their purchases. [vatcalc.com], [kreston.com] [kreston.com], [kreston.com] [taxology.co]

3.4 Recent & Upcoming Rate Changes

• Energy Price Reductions: In response to rising energy costs, Croatia temporarily lowered the VAT rate on certain energy products. The supply of natural gas to end users, originally taxed at 25%, has been subject to a 5% VAT rate from 1 April 2022, a reduction currently legislated to remain until 31 March 2026. Likewise, the supply of heating services (district heating) and firewood, pellets, briquettes, and wood chips have a reduced 5% rate from 1 October 2022 through 31 March 2026. These time-limited rate cuts aim to make energy and heating more affordable. Unless extended by new legislation, the rates would revert to the standard or normal reduced rates after March 2026. [taxsummaries.pwc.com]
• Solar Panels Zero Rate: Following EU Directive 2022/542, Croatia introduced a 0% VAT rate on the supply and installation of solar panel systems (as noted above) starting in 2022, whereas previously such supplies were taxed at 25%. This measure is part of an EU-wide initiative to encourage green energy transition. [taxsummaries.pwc.com]
• Standard Rate Stability: The headline 25% standard VAT rate has remained unchanged in recent years, as of 2026. (A planned cut to 24% that was discussed in past years has been postponed and not implemented.) There are currently no new announced changes to the standard rate.
• EU VAT Developments: Broader EU VAT rule changes have also affected Croatia, such as the July 2021 e-commerce VAT package which did away with country-specific distance selling thresholds (see Section 18) and introduced the OSS/IOSS systems. Additionally, effective January 2026, Croatia’s VAT compliance framework is being overhauled with mandatory e-invoicing and real-time reporting (see Section 14.3 and Section 20). These changes are part of ongoing efforts to modernize VAT collection and improve compliance. [taxsummaries.pwc.com]

4. VAT Number Format

5. Registration Requirements

5.1 Registration Thresholds (Residents vs. Non-Residents)

5.2 Voluntary Registration

5.3 OSS/IOSS Schemes for EU E-commerce

• Union OSS: A non-Croatian business selling goods to Croatian consumers (B2C distance sales within the EU) or providing electronic, broadcasting, or telecommunication services to Croatian consumers can choose to use the EU OSS instead of registering directly in Croatia. Under the OSS, the supplier can declare and pay Croatian VAT through a single EU-wide quarterly return in its home country. The EU has a EUR 10,000 annual threshold for micro-businesses, below which cross-border B2C sales (both intra-EU distance sales of goods and digital services) can remain taxed in the supplier’s home country; above this, the OSS must be used or individual VAT registrations obtained. Croatia’s domestic turnover threshold (EUR 60,000) does not apply to foreign businesses – the OSS scheme or a Croatian VAT registration is required for any regular B2C sales into Croatia once the small €10k EU-wide threshold is exceeded. [vatcalc.com], [vatcalc.com] [vatcalc.com], [croatiavat…nce.online]
• IOSS (Import OSS): Non-EU suppliers (or EU intermediaries on their behalf) selling low-value goods (consignments not exceeding €150) to customers in Croatia can utilize the IOSS to collect Croatian VAT at the point of sale and remit it via a single EU return. Using IOSS avoids import VAT being charged at the border in Croatia and simplifies compliance for e-commerce imports. If the IOSS is not used, import VAT will be due on importation of the goods into Croatia (see Section 13.4). [vatcalc.com]

6. VAT Grouping Rules

7. VAT Recovery for Foreign Businesses

• EU-established companies (8th Directive refunds): Businesses established in another EU Member State can apply for a Croatian VAT refund through the electronic portal of their home tax authority, under the procedures of Directive 2008/9/EC (former 8th Directive). The application for a given calendar year must be submitted by 30 September of the following year, and minimum claim amounts apply (e.g. at least €400 for claims covering less than a year, or €50 for a full-year claim). The Croatian Tax Administration will generally process approved refunds within 30 days of the VAT return deadline (or within 90 days if a tax audit of the claim is initiated). [vatcalc.com] [porezna-up…ava.gov.hr]
• Non-EU companies (13th Directive refunds): Businesses established outside the EU, if not carrying out taxable activities in Croatia that require VAT registration, can reclaim Croatian VAT under 13th Directive (Directive 86/560/EEC) procedures. Claims must be submitted directly to the Croatian Tax Authority (usually on paper with supporting original invoices) by 30 June of the year following the year of expense. Historically, Croatia only granted such refunds to businesses from countries with a reciprocity agreement (notably Serbia and Switzerland). However, this reciprocity requirement was abolished with effect from 2025, following a law change in December 2024. This means non-EU businesses can now claim Croatian VAT refunds even if their home country does not offer reciprocal VAT refunds to Croatian businesses. As with all 13th Directive claims, the non-EU claimant must show that: (a) it is not registered or required to register in Croatia, and (b) it has no residence or place of business in the EU. [taxation-c….europa.eu] [knowledgen…or.pwc.com]

8. Fiscal Representative Requirements

9. Currency and Foreign Exchange (FX) Rules

10. VAT Law and Legal Framework

11. Tax Authorities

12. Scope of VAT

• The supply of goods or services in Croatia by a taxable person (a person or business engaged in an economic activity) in the course of business. This encompasses virtually all sales of goods and services within Croatia, unless specifically exempt. [taxsummaries.pwc.com]
• The importation of goods from outside the European Union into Croatia (VAT is levied at import, regardless of whether the importer is a business or private individual). [taxsummaries.pwc.com]
• The intra-Community acquisition of goods in Croatia (goods brought into Croatia from other EU Member States by a business). Businesses acquiring more than EUR 10,000 of goods from other EU countries in a year are required to register and account for Croatian VAT on those intra-EU acquisitions. (Below this threshold, a non-VAT-registered Croatian buyer can pay Croatian VAT to Customs for intra-EU goods, but VAT registration is required once the threshold is exceeded.) [taxsummaries.pwc.com] [vatcalc.com]
• Certain B2C services from abroad: Under EU “place of supply” rules, certain services provided by a non-resident to a Croatian private consumer (B2C) are considered supplied in Croatia and thus subject to Croatian VAT. Examples include most digital services supplied to Croatian consumers (taxed via OSS, see Section 17) and certain services involving Croatian real estate or events held in Croatia. [kreston.com]
• Additionally, reverse-charge on inbound B2B services or goods: If a Croatian taxable person (business) receives services or intangibles from a supplier abroad, or purchases certain goods like gas or electricity across borders, the Croatian business must self-account for Croatian VAT under the reverse charge mechanism. This brings those cross-border inputs into the Croatian VAT net (with the local recipient charging themselves VAT, but also potentially deducting it, see Section 15.3). [vatcalc.com]

13. Time of Supply (Tax Point) Rules

• 13.1 Goods: For one-time sales of goods, VAT becomes chargeable at the time the goods are delivered or made available to the customer (transfer of right to dispose of the goods). In practice, this is usually when delivery or shipment occurs or when the customer takes possession of the goods. If an invoice is issued before the goods are delivered, the date of invoice can also fix the tax point. If goods are supplied on a sale-or-return or approval basis, the tax point is generally when the customer accepts the goods (in line with the general rule of delivery/transfer of ownership). [vatcalc.com]
• 13.2 Services: For one-off supplies of services, the VAT tax point is when the service is completed or performed for the customer. If an invoice is issued or payment received in advance of completion, that can create an earlier tax point for the amount invoiced/paid. If no invoice is issued by the supplier, the latest possible tax point for a service is the end of the calendar month in which the service was provided (this ensures VAT is accounted for promptly even if billing is delayed). [vatcalc.com]
• 13.3 Continuous supplies of services: For continuous or ongoing services (e.g. long-term leases, subscriptions, etc.), if the period of continuous service exceeds 12 months without an intermediate payment or invoice, Croatian VAT law deems a tax point to occur at least at the end of each VAT period (usually each calendar year or shorter reporting period). In other words, an ongoing service cannot run for over 12 months without a taxable event – the service is treated as supplied at least once every 12 months for VAT purposes. [vatcalc.com]
• 13.4 Imports: On the import of goods into Croatia from outside the EU, the time of supply (and VAT due date) is when the goods enter free circulation in the EU, i.e. when they clear Croatian customs. Import VAT is typically payable at that point, simultaneous with customs duties. However, Croatia now allows Postponed Accounting for import VAT: if the importer is a VAT-registered business, it may declare the import VAT in its next VAT return (as both output and input tax) instead of paying it upfront at customs. This effectively defers the cash payment of import VAT for businesses entitled to full input VAT recovery (see Section 15.6). Additionally, if imported goods are immediately re-dispatched as an intra-EU supply within 30 days, the import may be exempt from VAT altogether (to avoid taxing goods that quickly leave Croatia). [vatcalc.com]
• 13.5 Goods on approval/return: Where goods are supplied on a trial, consignment, or approval basis (where the buyer has a right to return the goods), the VAT tax point arises when the goods are accepted by the customer (or on the day the approval period ends without return), in accordance with the general rule that transfer of economic ownership triggers the supply. (If the customer returns the goods within the approval period, no sale has taken place for VAT purposes.) [vatcalc.com]

14. VAT Invoicing Requirements

14.1 Invoice Issuance Deadlines

14.2 Required Invoice Contents

• Date of issue of the invoice and a sequential invoice number (which uniquely identifies the invoice).
• Seller’s information: Name, address, and Croatian VAT identification number (OIB or EU VAT ID) of the supplier. If a fiscal representative is used (for a non-resident supplier), the representative’s name, address, and VAT number must also be stated. [globalvatc…liance.com]
• Customer’s information: Name, address, and VAT identification number of the customer if the customer is a taxable person (for B2B supplies) or if the invoice is for an intra-EU supply or a reverse-charged supply. For B2C supplies within Croatia, the customer’s VAT number is usually not required on the invoice. [globalvatc…liance.com]
• Description of goods or services supplied, including the quantity (or extent) and nature of the goods/services. Common commercial descriptions should be used so the nature of the supply is clear. [globalvatc…liance.com]
• Date of supply (or date of advance payment, if different from the invoice date) for the goods or services being invoiced. [globalvatc…liance.com]
• Net unit price or amount, any discounts or rebates (if not included in the price), and the taxable amount for the goods/services at each applicable VAT rate. (If multiple VAT rates apply to different items on the invoice, the amounts need to be itemized by rate.) [globalvatc…liance.com]
• The applicable VAT rate(s) (e.g. 25%, 13%, 5%, or 0%) for each item or line on the invoice. [globalvatc…liance.com]
• The VAT amount payable, separately stated for each VAT rate applied, as well as the total VAT amount charged on the invoice. If an exemption or zero-rate applies to any line, that line should show no VAT amount but include an explanatory note (see below). [globalvatc…liance.com]
• Gross total payable including VAT.

• If a supply is exempt or zero-rated, the invoice should include a reference to the provision of the Croatian VAT Act or EU Directive under which no VAT is charged (or a phrase such as “PDV 0% – izvoz robe” for exports, etc.). [globalvatc…liance.com]
• If the reverse charge mechanism applies (e.g. for certain domestic reverse-charge supplies or B2B supplies by non-residents), the invoice must be marked with the phrase “Prijenos porezne obveze” (Croatian for “reverse charge”) clearly indicating that the customer is responsible for VAT. The English phrase “Reverse charge” is also commonly included. [globalvatc…liance.com]
• If the invoice is a self-billing invoice (issued by the customer on behalf of the supplier), it should be marked with “Samoizdavanje računa” or “Self-billing”. [globalvatc…liance.com]
• If a credit note (storno invoice) is issued, it must refer to the original invoice’s number and date and include a brief reason for the correction (see 14.7). [vatcalc.com]

14.3 E-Invoicing and Digital Signatures

• B2G E-invoicing: E-invoicing is already mandatory for business-to-government (B2G) transactions in Croatia. Suppliers to public sector entities must issue e-invoices through the national platform (e-Račun) in a structured format (aligned with EU standard EN 16931), and these must be digitally signed with a qualified electronic signature tied to the company’s OIB. [vatupdate.com], [vatupdate.com]
• Mandatory B2B E-invoicing from 2026: A new Fiscalization Act was passed in 2025 that will make electronic invoicing compulsory for most B2B transactions from 1 January 2026. Starting on that date, all VAT-registered businesses in Croatia will be required to issue e-invoices for domestic B2B sales, using a structured format (CIUS “HR-FISK 2.0” XML) that includes all legally required fields and a qualified digital signature tied to the supplier’s VAT number (OIB). These e-invoices must be transmitted in real time to the Tax Administration for approval/fiscalization at the time of issuance. Paper invoices will generally no longer be accepted for domestic B2B transactions (except in certain emergency scenarios or if the buyer is not ready to receive e-invoices). [kpmg.com] [vatupdate.com], [vatupdate.com]
• Real-time reporting of B2C sales: Croatia has since 2013 operated a “fiscalization” system for retail (B2C) cash transactions, requiring businesses to issue receipts from certified cash registers and transmit each sale to the tax authority in real time to obtain a unique verification code (JIR) on the receipt. Under the new 2026 Fiscalization 2.0 reform, this real-time reporting requirement is being extended to all B2C transactions, including those paid by bank transfer (previously, only cash or card transactions were subject to fiscalization). However, B2C sales to consumers will not require sending a structured electronic invoice to the customer; a paper or digital receipt can still be given, as long as the sale is reported electronically to the tax authorities and a fiscal approval code obtained. [vatupdate.com] [taxsummaries.pwc.com]

14.4 Simplified Invoices

14.5 Self-Billing

14.6 Record Keeping and Invoice Retention

14.7 Correcting Invoices

15. Compliance and Deductions

15.1 Right to Deduct Input VAT (and Key Restrictions)

Businesses registered for VAT in Croatia can generally deduct the input VAT incurred on purchases of goods and services used for their taxable business activities. The input tax credit is taken on the periodic VAT return, offsetting output VAT on sales. However, there are several notable restrictions on input VAT recovery in Croatia: [croatiavat…nce.online]

• Passenger Cars and Related Expenses: Only 50% of the VAT on the purchase, lease, maintenance, and fuel costs of personal passenger vehicles (cars classified under category M1) is deductible. The remaining 50% is blocked from recovery unless the car is exclusively used for business purposes or falls under certain exceptions (e.g. it is purchased for resale, used in a taxi business, driving school, car rental, or for certain licensed commercial purposes). (The previous HRK 400,000 value cap on car purchase VAT deductions was abolished in 2018, but the 50% restriction remains.) Similarly, VAT on motorcycles, boats, and aircraft that are not used exclusively for business may be partially or fully non-deductible. [vatcalc.com] [porezna-up…ava.gov.hr]
• Entertainment and gifts: Input VAT on expenses for business entertainment, hospitality, and gifts is not deductible (this covers, for example, client meals, receptions, and non-sample business gifts). Promotional items of very low value and branded samples may be treated as having no VAT, per EU rules. [vatcalc.com]
• Exempt Activities: No input VAT may be reclaimed to the extent a purchase is used for making VAT-exempt supplies (see Section 3.3). For example, a bank or hospital making exempt supplies cannot deduct VAT on its purchase of goods or services related to those exempt outputs. If a business has mixed activities (both taxable and exempt), it must allocate and pro-rate input VAT (according to use) and may only reclaim the portion related to taxable/out-of-scope activities, as per the EU partial exemption rules. [croatiavat…nce.online]
• Documentation and timing: To claim input VAT, a taxpayer must hold a valid VAT invoice from its supplier (or a customs import document, in the case of imports) with all required details (see Section 14.2). Input VAT is usually deducted in the period when the invoice’s tax point occurs, or in one of the following 12 months; after 12 months, late deduction generally requires a correction to the VAT return or may be forfeited. Additionally, some input VAT claims (e.g. on bad debts – see 15.5) require specific documentation like a debtor’s acknowledgment. Businesses must maintain purchase records (formerly the URA book of incoming invoices, which was abolished as of 2023) to support their input VAT credits. [globalvatc…liance.com] [croatiavat…nce.online], [croatiavat…nce.online]

15.2 Call-Off Stock Arrangements

15.3 Reverse Charge Mechanisms (Domestic & Cross-Border)

• General cross-border B2B services: When a Croatian taxable business receives services from a foreign supplier (e.g. consulting or advertising services from a non-resident under the general B2B rule), the transaction is taxed via the reverse-charge. The Croatian recipient must self-assess Croatian VAT on the service value and simultaneously can deduct it as input VAT (if entitled), resulting in no net tax due in most cases. This fulfills Croatia’s obligations under Article 196 of the EU VAT Directive (accounting for VAT on inbound B2B services). [vatcalc.com]
• Supplies by non-residents: If a foreign company without a Croatian VAT registration sells goods or provides services in Croatia to a VAT-registered customer, Croatian law broadly makes the local customer account for the VAT under reverse-charge. In practice, this means non-established companies usually do not charge Croatian VAT on their invoice to a Croatian business; instead, the Croatian buyer will calculate the VAT (and deduct it if eligible) on its own VAT return. This rule covers all B2B supplies of goods or services by non-residents in Croatia, except where the non-resident has itself opted or is required to register in Croatia. (If a non-resident is VAT-registered in Croatia, it will charge Croatian VAT like a local supplier and no reverse-charge applies.) [vatcalc.com]
• Domestic reverse charges: Croatia has several specific cases where a domestic reverse charge applies to combat fraud or simplify accounting in certain industries. In these cases, the customer (if VAT-registered in Croatia) pays the VAT instead of the supplier. Domestic reverse charge applies, for example, to supplies of construction work (when performed by a subcontractor to a main contractor), construction land and real estate (if the supplier opts to tax an otherwise exempt sale of real property to a taxable person), investment gold (if taxed by option), scrap and waste materials, and transfers of greenhouse gas emission allowances. Additionally, the supply of natural gas and electricity by a non-established supplier to a Croatian taxable dealer is covered by reverse charge (per EU rules). In any reverse-charge scenario, the invoice must indicate “reverse charge” (see Section 14.2), and the Croatian recipient is responsible for reporting the output VAT (and may claim input VAT if entitled), while the supplier does not charge Croatian VAT. [kreston.com] [vatcalc.com]

15.4 Cash Discounts

15.5 Bad Debt Relief Conditions

15.6 Import VAT Deferment Scheme

15.7 VAT Warehousing

15.8 “Supply and Install” Transactions

15.9 Use-and-Enjoyment Provisions

15.10 Capital Goods Adjustment Period

16. VAT Recovery for Non-Residents (VAT Refunds)

16.1 EU 8th Directive (Foreign EU Businesses)

• Deadlines: Claims for a given calendar year must be submitted by September 30 of the following year at the latest. For example, VAT paid in 2025 should be claimed by 30 September 2026. [vatcalc.com]
• Minimum amounts: If the claim covers less than a calendar year (but at least three months), the minimum reclaimable VAT amount is €400; for a full-year claim (or remainder of year less than 3 months) the minimum is €50. [vatcalc.com]
• Processing time: Once a complete claim is submitted, the Croatian Tax Authority aims to refund approved amounts within 30 days of the standard deadline for the claim (i.e. typically by end of October for full-year claims). If a verification (audit) is initiated, the law allows up to 90 days from the start of the audit to finalize the refund. [porezna-up…ava.gov.hr]

16.2 Non-EU 13th Directive (Foreign Non-EU Businesses)

• Application process and deadline: The refund application (form ZP-PDV) must be submitted by 30 June of the year following the year in which the VAT was incurred. The application is submitted directly to the Croatian Tax Administration in Zagreb (Foreign Taxpayers Department) and must be accompanied by original invoices or import documents and a certificate of VAT status from the taxpayer’s country of establishment. The form and documentation can be submitted by mail; electronic submission is not currently available for 13th Directive claims. Communication can be in Croatian or English. [taxation-c….europa.eu]
• Reciprocity requirements: Until recently, Croatia only granted VAT refunds to non-EU companies if their country offered reciprocal treatment for Croatian businesses. Croatia had formal reciprocity agreements with a few countries (notably Serbia and Switzerland). Companies from other non-EU countries (including the USA) were generally not eligible for VAT refunds from Croatia. However, as of 2024, Croatia has abolished the reciprocity requirement. This legislative change means that businesses from any non-EU country can now apply for a refund of Croatian VAT (still subject to meeting the other conditions). [taxation-c….europa.eu] [knowledgen…or.pwc.com]
• Minimum amounts: The minimum claim amounts are similar to the 8th Directive: €400 for claims covering a period of 3–12 months, or €50 for a claim for the full year. [taxation-c….europa.eu]
• Fiscal representative: Unlike some EU countries, Croatia does not mandate a fiscal representative for 13th Directive refund claims. The non-EU business may submit the claim itself or authorize a Croatian entity to do so on its behalf (with a power of attorney). [taxation-c….europa.eu]
• Refund payment: Approved refunds are paid directly to the claimant’s bank account (typically via international bank transfer in euros). The Croatian Tax Administration generally processes 13th Directive refund claims within 8 months of receiving the application. [taxation-c….europa.eu]

16.3 Reciprocity Requirements

16.4 Need for Fiscal Representative (for Refunds)

17. VAT on Digital Services

18. Distance Selling Rules for Goods (E-Commerce)

18.1 Thresholds for Distance Sales

Before July 2021, distance sales of goods to Croatia (goods dispatched from another EU country to Croatian consumers) were subject to Croatian VAT only if the supplier’s sales to Croatia exceeded a yearly threshold (formerly HRK 270,000, roughly €35,000). However, under the new EU e-commerce VAT rules in effect since 1 July 2021, this country-specific threshold was abolished. Instead, there is now an EU-wide distance sales threshold of €10,000 (shared with telecom/e-services) for micro-businesses across the entire EU. In practice, this means: [vatcalc.com] [croatiavat…nce.online]

• EU businesses selling goods online to Croatian consumers will charge Croatian VAT on all such sales by default, unless their total cross-border B2C sales across the whole EU are very small (under €10k), in which case they can opt to use their home country’s VAT. Once that €10k pan-EU small enterprise threshold is exceeded, the business must begin charging the VAT of the customer’s Member State (Croatia’s 25%, 13%, or 5% as applicable). Most medium and large EU e-commerce sellers will therefore be charging Croatian VAT on sales to Croatian customers. [vatcalc.com]
• Non-EU businesses selling goods to Croatian consumers will always be subject to Croatian VAT on those sales (from the first sale), since the €10k threshold only applies to EU-established businesses. In many cases, a non-EU seller can handle this via the Import One Stop Shop (IOSS) for shipments not exceeding €150 (see 18.2).

18.2 OSS/IOSS – Facilitating E-Commerce Compliance

• One Stop Shop (OSS): Rather than registering in every EU country, an EU business can use the OSS to report all its B2C distance sales of goods to other EU countries in a single consolidated quarterly return. For instance, a German online retailer selling to Croatian customers can charge Croatian VAT on those sales and remit it via the OSS return filed in Germany. Croatia then receives the VAT through an EU clearing mechanism. Croatian consumers should see a Croatian VAT charge on their invoice/receipt, fulfilling the supplier’s obligations without a local registration. Croatia’s laws fully recognize OSS: if an EU seller is properly using OSS, they have no additional Croatian filing requirements (the OSS return replaces the Croatian VAT return for those sales). [vatcalc.com]
• Import One Stop Shop (IOSS): Non-EU suppliers (or EU intermediaries) can utilize the IOSS for distance selling of imported goods to Croatia (and other EU countries) where individual consignments do not exceed €150 in value. The IOSS allows the foreign seller to collect Croatian VAT from the customer at the point of sale and report it in a monthly IOSS return, avoiding the need for the customer to pay VAT on import. Croatia does not require a non-EU IOSS user to appoint a fiscal representative solely for IOSS; the non-EU business can register for IOSS in any single Member State (often via an intermediary agent). If a non-EU seller chooses not to use IOSS, then their Croatian customers will have to pay import VAT (and possibly duties) upon delivery of goods, and the seller might need to consider a normal VAT registration if frequently importing goods in bulk to Croatia for local sale. [vatcalc.com]

19. Cash Accounting Scheme

20. VAT-Registered Cash Tills (Point-of-Sale Requirements)

21. Statute of Limitations

22. VAT Return Filing

22.1 Filing Frequency

In Croatia, VAT returns are typically filed on a monthly basis. Each VAT return covers one calendar month. However, quarterly filing is allowed for small domestic businesses whose annual turnover did not exceed HRK 800,000 (around €106,000) in the previous year, provided they had no intra-Community transactions (no EU cross-border sales or purchases) in that period. Qualifying taxpayers may elect to file quarterly returns, but if they later exceed the threshold or engage in EU cross-border trade, they must switch to monthly filing. Non-resident businesses (foreign companies registered for Croatian VAT) are required to file monthly returns regardless of turnover – they cannot file quarterly. [vatcalc.com], [taxsummaries.pwc.com] [kreston.com]

22.2 Filing Method

22.3 Deadlines for Filing and Payment

22.4 Pre-Filled Return Availability

22.5 Handling of VAT Credits and Refunds

22.6 Correction of Errors

22.7 Non-Resident Filing Specifics

23. Other Filings

23.1 EU Sales List (EC Sales List)

All Croatian VAT-registered persons must file a Periodic EU Sales List – locally known as the Zbirna prijava (form PDV-S) – for any given month (or quarter) in which they have made intra-Community supplies of goods or certain cross-border B2B services. The EC Sales List (ESL) reports the value of zero-rated sales to VAT-registered customers in other EU countries. In Croatia, the ESL is generally filed monthly by the 20th of the month following the reporting period (with the possibility of quarterly filing if the taxable person’s total EU supplies of goods and services do not exceed €50,000 in the current quarter and previous four quarters). The ESL must include each customer’s VAT ID and the total value of goods and/or services supplied to them in that period. There is no minimum threshold for reporting – even a single euro of intra-EU sales triggers the requirement (except that purely domestic businesses with no EU sales need not file nil ESLs). Late or incorrect ESL filings can incur administrative fines. [vatcalc.com]

23.2 Intrastat Declarations

23.3 Annual Returns

23.4 SAF-T and Other Digital Reporting

24. Penalties and Interest

24.1 Late Filing (Failure to File)

Failure to file VAT returns on time or filing inaccurate returns can result in significant penalties. Croatian tax law stipulates fines that vary depending on the severity and frequency of the violation. For failing to submit a VAT return within the deadline (or for substantial errors/understatements in a return), a business can face a penalty ranging from approximately €265 up to €66,000 (roughly HRK 2,000 to 500,000). Company executives or responsible persons may also incur personal fines for serious violations. The upper end of the fine range tends to apply in cases of tax evasion or fraud, while lower fines might apply for late filings that do not result in unpaid tax. [vatcalc.com], [taxology.co] [vatcalc.com]

24.2 Late Payment and Interest

24.3 Other Penalties

25. Other Notable VAT Features

• Pre-Registration Expenses: Croatia allows businesses to recover input VAT on purchases made before VAT registration, once they do register, provided those purchases relate directly to taxable activities commenced after registration. This helps new businesses recover VAT on startup costs (such as equipment or inventory bought prior to obtaining a VAT number), as long as the goods or services are used for the newly taxable business. Proper documentation and accounting of these pre-registration expenses is required to claim the VAT credit. [vatcalc.com]
• Alignment with EU Initiatives: As a member of the EU, Croatia’s VAT system is continually updated in line with European initiatives. For instance, Croatia has implemented all “Quick Fix” measures from 2020 (simplifying call-off stock, uniform rules for chain transactions, etc.) and the 2021 E-commerce VAT Package (with OSS/IOSS and removal of import VAT exemption for small consignments). Croatian law also permits the new VAT rate flexibilities introduced by the EU (e.g. zero-rating of certain goods like solar panels, as discussed). Taxpayers doing business in Croatia can generally assume that EU-wide VAT rules (place of supply, valuation, etc.) apply here, with only minor local specifics.
• Digital Tax Administration: Croatia is moving toward a highly digitized VAT administration. In addition to the long-standing fiscal cash register system (Section 20), the e-Porezna online system is used for all filings (Section 22.2). The adoption of mandatory e-invoicing and real-time reporting in 2026 will make Croatia one of the EU’s more digitally advanced VAT regimes, aiming to reduce fraud and close the VAT gap. Businesses should ensure their accounting systems are updated to comply with these changes and monitor guidance from the Tax Administration during the transition. [vatupdate.com], [taxsummaries.pwc.com]
• No Threshold for Input VAT on Non-resident Purchases: If a Croatian company or individual not registered for VAT (e.g. a small business under the threshold or a private person) buys goods from an EU vendor and the total exceeds HRK 77,000 (~€10,200) in a year, they must inform the Tax Administration and pay Croatian VAT on those intra-Community acquisitions. This rule prevents avoidance of VAT through unregistered businesses purchasing large amounts from EU suppliers. Once that threshold is crossed, the person becomes liable for VAT on all EU acquisitions (and in practice would need to register for VAT to account for it). [porezna-up…ava.gov.hr]
• No SAF-T: Unlike some EU countries, Croatia has not adopted the SAF-T (Standard Audit File-Tax) system for periodic submission of detailed accounting records. Tax audits are still conducted by requesting specific information rather than by automatic data extractions. However, with comprehensive real-time e-invoicing data soon available to the Tax Administration, audit processes may become more streamlined in the future. [vatcalc.com]