The Croatian VAT number for a foreign company can be obtained with the help of our local specialists, and respecting the legislation imposed. The VAT is applicable to all goods and services bought and sold in the European Union. As a member of the EU, Croatian VAT compliance – registrations, returns, ESLs, Intrastat – follow the European Union VAT Directives. Our specialists in company registration in Croatia can give you further details on the matter.
| Quick Facts | |
|---|---|
| We offer VAT registration services |
Yes |
|
Standard rate |
25% |
|
Lower rates |
13% and 5% |
| Who needs VAT registration |
Companies with activities in Croatia |
| Time frame for registration |
Around 8 days |
| VAT for real estate transactions |
No VAT for acquisition of real estate properties |
| Exemptions available |
– for certain transportation services, – activities in the public interest, – intracomunity transactions |
| Period for filing | On monthly or quarterly basis |
| VAT returns support | We provide assistance |
| VAT refund | Both EU and non-EU companies can apply for VAT refund |
| Local tax agent required | Mandatory for non-EU companies |
| Who collects the VAT |
Croatian Tax Administration |
| Documents for VAT registration |
– Articles of Association, – Certrificate of Registration, – standard forms. |
| VAT number format | Country code (HR) followed by 9 digits |
| VAT de-registration situations |
When the company closes the activities or relocates |
Table of Contents
Croatian VAT registration for a foreign company
The Croatian VAT registration for a foreign company is a simple process for which no threshold is imposed, except in the case of companies with online distance selling, where the registration is done when the threshold of EUR 36,000 is reached. Let’s review some formalities in this regard:
- VAT registration in Croatia can be done directly with the Croatian Tax Administration, without the need for tax representatives for resident companies in another EU member state.
- There is an obligation to have a fiscal agent for non-EU companies with an establishment in Croatia, in case of registration for VAT payment.
- OIB and P-PDV are the standard forms offered by the authorities for filling in information related to the company and its activities.
- If the company is registered in another EU member country, a VAT certificate, no older than 3 months, will be presented.
- It is necessary to write a letter explaining the reason for VAT registration in Croatia.
- An extract from the Trade Register, translated into Croatian, is also requested.
- The application for Croatian VAT registration for a foreign company is sent to the tax administration within the Ministry of Finance in Croatia, based in Zagreb.
Therefore, those interested in Croatian VAT registration for a foreign company must comply with the formalities mentioned above. In terms of paperwork, you can contact one of our company formation specialists in Croatia who can help you throughout the registration process.
VAT registration for a local company in 2024
According to the EU VAT rules, a Croatian company has to register for VAT in a number of trading situations. These include the following:
- Importing goods into Croatia – if the customers of these goods are not Croatian companies already registered for VAT purposes;
- Buying and selling goods in Croatia, if the customers are not Croatian companies with a local VAT registration;
- Holding goods in consignment warehouses in Croatia for a period longer than three months;
- Selling goods to Croatian customers via the internet or catalogs (distance selling);
- Holding events, training in Croatia or live exhibitions with paid admission;
- When self-supplying a Croatian company with goods.
In 2010, the Croatian authorities implemented the VAT package changes which allow companies to apply for a reverse charge process if they are providing services to local Croatian companies. All companies that provide electronic, telecom, or broadcast services to local Croatian companies have to register for VAT in one EU state, under the MOSS scheme.
This allows the filing of a single return covering all 28 member states. Our company registration experts in Croatia can tell you if you need to register for VAT in 2024 and what thresholds apply to this registration. If you need accountants in Croatia for your business, we can offer professional services.
One of the obligations of companies registered for VAT in Croatia refers to submitting periodic returns. As such, the VAT returns in Croatia are submitted monthly or quarterly, depending, of course, on turnover. In this sense, the deadline is the 20th of the following month, however, companies trading below EUR 105,000 per year can choose quarterly returns as an alternative.
VAT rates in Croatia
The standard VAT rate in Croatia is 25%. This rate can be reduced up to 13% or 5%. All accommodation services and certain newspapers are subject to a 10% VAT rate. No VAT is imposed on bread, milk, medical supplies, and certain educational services. Insurance and financial services, medical services, welfare, and education services are VAT exempt in Croatia.
Croatian companies with an annual turnover that exceeds EUR 36,000 are subject to VAT registration if dealing with e-commerce. All exports in Croatia are exempt from VAT, but for more details about this tax in 2024, you can discuss it with our agents.
A fiscal representative is needed for non-EU companies with establishments in Croatia. This rule is not imposed on enterprises originating from EU countries.
The 13% VAT rate in Croatia
The 13% VAT rate applies to specific foodstuffs, water supplies, particular newspapers and magazines, hotel accommodation, hotel services, entertainment tickets, particular agricultural inputs, electricity supply, domestic waste collection, etc.
Payroll in Croatia is one of the services that our accounting firm can offer you. With the help of such a service, you will be able to ensure the correct distribution of salaries in the company, according to those established by managers and directors. We remind you that our specialists use different programs in this sense, regulated and accepted according to the legislation. Get in touch with us to find out all the aspects that interest you.
The 5% VAT rate in Croatia
The 5% VAT rate in Croatia applies to particular medical equipment, daily newspapers and scientific periodicals, pharmaceutical products, books, and specific food products. Besides the above-mentioned reduced VAT rates, it is good to know that this tax is not imposed on intra-community and international transport, except the road and rail transport. For more details about the VAT rates in Croatia, you may address one of our company formation agents in Croatia.
There are a number of accounting aspects that only a professional can explain and implement in the company. That is why we recommend the services of our accountants in Croatia. Tax registration, bookkeeping, payroll, and submission of annual financial statements of a company are important aspects, and such a specialist can take care of them.
Formalities for VAT registration in Croatia
The company’s documents, such as the Articles of Association and the Certificate of Incorporation, plus other forms must be submitted to the tax administration and the Ministry of Finance of the city in which the business is registered. An extract provided by the Croatian Trade Register of the foreign entitled authority showing the company is registered for business needs to be submitted when the VAT registration starts.
The VAT registration of a company in Croatia must be considered as soon as the incorporation is made, and at least 8 days before the operations commence. One of our specialists can give full support for VAT registration in Croatia. They can also help you obtain the EORI number if you want to develop trading activities within the EU territory. Plus, you can watch the folowing video presentation:
The Croatian VAT number format
The VAT number in Croatia is unique for each company registered in this country and it is formed of 11 digits and the country’s prefix, HR.
Non-resident tax persons without legal seats in Croatia are allowed Croatian VAT refunds if they make proof they haven’t made taxable supplies, and if there is a reciprocity arrangement for the Croatian business.
VAT compliance in Croatia
The post-VAT registration rules must be respected by companies with activities in Croatia. Firms can issue invoices, including electronic ones with a legal signature. Invoice correction and other credit notes can be made, in compliance with the Croatian VAT Act. Another important aspect refers to the maintenance of company records and accounts which need to be kept for at least 10 years.
In the case of non-EU companies established in Croatia, the appointed tax representative is accountable for tax payments, and also penalties relating to transactions in Croatia, as stipulated by the legislation in this sense.
VAT threshold registration in Croatia
Foreign investors in Croatia should know that there is no VAT threshold registration, except for companies dealing with distance selling. E-commerce companies selling products and services to clients in Croatia must observe and respect the VAT threshold of EUR 36,000 Additional information about the VAT threshold can be obtained from one of our consultants.
Also, if you are interested in accounting services in Croatia, you can talk to one of our specialists who can give you more details and also support.
Exemptions from value added tax in Croatia
There are certain goods and services that are exempt from the Croatian value added tax. They are divided into seven categories and our Croatian lawyers can help you determine on which category your goods and services fall:
- activities involving public interest,
- transactions done within the community,
- specific transport services,
- international transport,
- imports,
- exports,
- those provided by special laws.
VAT returns in Croatia
There are two types of VAT returns in Croatia. These are the monthly VAT returns and the annual ones. For monthly VAT returns, the filing is done by the 20th of the month following the transaction it pertains to. For the annual VAT return, filing must be done by the end of February of the current year.
What should an invoice contain?
The VAT invoice must contain information such as the following:
- Date and invoice number.
- The name and address of the company making the respective sale.
- The VAT ID number.
- The price of the products and/or services purchased, without VAT.
- The price of services and/or products purchased with VAT included.
- VAT rate.
- Information about “reverse charge”, if the beneficiary is accountable for VAT.
- Name of the fiscal representative, if appropriate.
There are dedicated systems and software that can be used by a VAT-paying company and that must be implemented when opening the respective business. We remind you that you can discuss all aspects of VAT registration in Croatia with one of our local agents who can provide you with the necessary support.
Simplified invoice content
A simplified invoice can be issued for amounts that do not exceed EUR 90. It must include the following information:
- Issue date and invoice number.
- The name of the company that offers the respective products and services for sale.
- VAT ID number.
- VAT rates.
- Total price with VAT and the price without VAT.
Considering these aspects, it is important to implement the necessary systems for issuing this type of invoice. You can discuss more details about this topic and aboutthe VAT registration in Croatia with our local specialists.
Short facts about company registration in Croatia in 2024
Local and international entrepreneurs can easily register companies in Croatia, as the lack of complex formalities is a major business advantage. The incorporation process of a firm in Croatia starts with the Trade Register and the submission of the Articles of Association with information about the owners, business address and representative, activities, rules, etc. Another important thing is the VAT registration in Croatia which must be made and the time of business formation.
The limited liability company suits most of the needs of both domestic and foreign entrepreneurs in Croatia, as this is a simple structure that can be registered if a minimum share capital of HKR 20,000 for a private LLC is deposited in a local bank account. In the case of public limited liability companies, the minimum share capital is set at EUR 25,000. The next steps before a company starts activities in Croatia involve business license approvals, VAT and social contribution registration, plus the issuance of the company seal.
In terms of investments, Croatia is quite appealing to international financiers and investors in sectors like manufacturing, agriculture, tourism, engineering, IT and telecommunication, etc. The skilled workforce and the appealing tax structure are other important business benefits for foreigners in Croatia. The following facts and statistics can show the business direction of Croatia:
- According to the 2021 Doing Business report issued by the World Bank, Croatia ranked 51st out of 190 economies in the world.
- The Netherlands, Austria, Germany, and Italy are the main investors in Croatia.
- Around USD 38,89 million was the total FDI stock for 2021 in Croatia.
Why choose the services of our local agents
The VAT registration in Croatia may seem like a rather complex process, especially for foreign businessmen who are doing business in this country for the first time. Although it is not mandatory to have a representative fiscal agent as a company from an EU member country, it is still recommended to have with you the support and guidance of an expert in the field.
You can benefit from the services offered by our team of company formation agents in Croatia to be able to receive a VAT number in a relatively short time and without complexity.
For more details about the VAT registration in Croatia in 2024, you may contact our specialists in company formation in Croatia.