Croatia VAT returns

Regular Croatian VAT returns are required from non-resident traders with a VAT number. These are required to report taxable transactions in Croatia, and to report any VAT due/refund from the tax payer.

Non-resident companies are required to file monthly VAT returns regardless of the level of turnover. The tax authorities no longer expect a Croatian annual VAT return.

Companies registered in Croatia, and charging Croatian VAT, may offset the VAT charged on sales (output VAT) against the VAT paid on Croatian supplies (input VAT). This includes VAT charged on the import of goods. Examples of VAT deductions include:

• Purchase and lease of vehicles and other means of personal transport except when used for business purposes such as training, rental, transport of passengers and goods.
• Purchase of goods and services for business partners e.g. accommodation, gifts, sport, entertainment

Croatian VAT filings for non-residents are due monthly on the 20^th of the month following the tax period end. Any Croatian VAT due must be paid before the last day of the month following the end of the tax period.

Electronic filing of VAT returns and payment has been mandatory in Croatia since 2013. The relevant forms can be obtained and submitted via the Croatian Tax Administration website.

There may be penalties for late Croatian returns and VAT payments. These range from HRK2000 to HRK500,000 Interest is charged on outstanding balances at a rate of 12% per annum.

If there is a surplus of VAT inputs over outputs (more VAT incurred than charged), then a Croatian VAT credit arises. This is generally rolled over to the following month for offset against any output VAT due. It is possible to apply for a Croatian VAT credit which will be refunded within 30 days of the date of submission.