VAT Agent Services

Understanding the nuances of Croatia’s VAT (Value Added Tax) system is key to smooth business operations. Known as Porez na dodanu vrijednost (PDV), the system is built on a multi-tiered structure of rates and strict compliance requirements for all taxable persons.

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Croatia applies a standard VAT rate of 25% to the majority of goods and services. However, a progressive system with reduced rates helps to make essential items more affordable.

Reduced Rate 13%: This rate applies to a specific set of services and goods, including tourist accommodation, electricity and utility services, certain prepared foods, and all restaurant and catering services.
Reduced Rate 5%: A lower rate is reserved for essential goods like fresh foods (bread, milk, meat), books and e-books, medicines, and medical equipment.
The 0% Rate: A select number of services are exempt from VAT, such as international transport of goods and passengers, and most medical and financial services.

Timely Filings: All VAT-registered businesses must submit regular VAT returns, typically on a monthly basis. These returns, along with any necessary payments, must be filed electronically by the 20th of the month following the reporting period.
Accurate Invoicing: Businesses are obligated to issue invoices that meet strict content requirements. Invoices must clearly state all necessary information, including the applicable VAT rate and amount, the supplier’s and customer’s VAT ID, and a clear description of the goods or services provided. These records must be kept for a period of ten years.
Specialized Reporting: For businesses engaged in intra-EU trade, additional reporting is mandatory. This includes the European Sales List (ESL) for B2B supplies to other EU countries and Intrastat reports for the movement of goods, once specific annual thresholds are met.

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VAT Returns

In Croatia, VAT returns are filed monthly, regardless of your company’s turnover. The returns, along with any due VAT payments, must be submitted to the Croatian Tax Administration by the 20th of the month following the end of the reporting period. For example, the return for the month of January is due by February 20th.
Since 2013, all VAT returns in Croatia must be filed electronically through the official website of the Tax Administration.
What to Include in the Return
The Croatian VAT return requires a detailed breakdown of your business’s VAT-related activities for the period, including:
All taxable sales (output VAT) and purchases (input VAT).
VAT on imports and exports.

Intra-community supplies and acquisitions.
Details on any VAT refunds or credits you are claiming.
By accurately reporting these transactions, you can offset the VAT collected on your sales against the VAT you’ve paid on your business expenses.

VAT Refund

If your deductible input VAT exceeds your output VAT for a specific period, you can apply for a VAT credit. This credit can either be carried over to the next month to offset future VAT obligations or, if you prefer, you can apply for a direct refund from the Croatian Tax Administration. Once a refund application is submitted, the tax authority is generally required to process the refund within 30 days.

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