VAT in Croatia

If you are a foreign company selling to or trading with Croatia, you must comply with Croatian VAT regulations from the moment you carry out a VAT-liable transaction in the country. Croatia is a full EU member and adopted the euro on January 1, 2023; consequently, all monetary thresholds are calculated in EUR. Locally, the tax is known as PDV (*Porez na dodanu vrijednost*), and the standard rate is 25%. The rules regarding when you must register depend on whether you are established in Croatia, in another EU country, or outside the EU.

VAT rates and key figures in Croatia

Conditions	Croatia (2026)
Standard rate	25 %
Reduced rates	13 % og 5 %
Zero rate (0%)	Including certain international and intra-EU passenger transport services as well as exports.
Registration threshold	EUR 60,000 per calendar year for Croatian-established businesses. No threshold for foreign/non-established businesses – registration required from the first taxable supply.
Distance selling threshold (OSS)	EUR 10,000 (common EU threshold for total cross-border distance sales)
VAT number format	HR + 11 digits (based on OIB), e.g., HR12345678901
Reporting period	Monthly; reporting no later than the 20th of the month following the period. Quarterly reporting is an option for smaller businesses with no intra-EU acquisitions.
Fiscal representative	Required for companies established outside the EU. Not required for EU-established companies

E-commerce and webshop: OSS, warehouse and Amazon

If you sell goods via an online shop to Croatian consumers, the VAT treatment is determined by where the goods are shipped from and the total volume of your EU distance sales. If your total cross-border distance sales to consumers in other EU countries exceed the common annual threshold of EUR 10,000, you must charge Croatian VAT on sales to Croatian customers. You can easily handle this through One Stop Shop (OSS), where you report and pay VAT for all EU countries via a single system in your home country, instead of registering in each individual country.

However, OSS does not cover everything. Do you have inventory in Croatia, or moving goods to a Croatian warehouse for distribution, a local Croatian VAT registration is required, regardless of OSS. The same typically applies if you use a Amazon fulfilment-center or similar storage in the country, as the movement of goods to and from the warehouse must be handled locally. We help you determine whether OSS is sufficient or if you also need to register locally. Read more about our solution for Danish e-commerce to the EU.

B2B trade and reverse charge

In B2B sales to VAT-registered businesses in Croatia, the reverse charge mechanism is often applied, whereby the buyer accounts for the VAT. The seller issues an invoice excluding VAT, citing the reverse charge, and the Croatian buyer calculates and reports the VAT on their own return. This means that, as a foreign seller, you can in certain cases avoid local VAT registration when the buyer assumes the VAT liability.

Croatia also applies an extended reverse charge mechanism to a range of domestic services and supplies. The specific rules depend on the type of transaction and whether goods or services are involved; therefore, each case should be assessed individually before you issue an invoice. If you are unsure whether a specific transaction triggers a registration requirement, we can help you clarify this before a costly mistake occurs.

VAT refund in Croatia

If your company has incurred expenses subject to Croatian VAT without being VAT-registered in the country, you can often reclaim the VAT paid. This typically applies to expenses for trade fairs and conferences, hotel accommodation, fuel, car rentals, taxis, and advertising, as well as goods and services purchased for business purposes. EU-based companies apply for a refund via the electronic EU refund system, while non-EU companies follow a separate procedure. Deadlines are strict, and the application must be properly documented. We are ready to handle your VAT refund, so you don't leave money with the Croatian authorities.

Euro, OIB and local registration

Since Croatia adopted the euro on January 1, 2023, all VAT thresholds and declarations are denominated in EUR. A Croatian VAT number is based on the company’s OIB (Croatian identification code) and follows the format "HR" followed by 11 digits. Registration is handled by the Croatian tax authority, *Porezna uprava*, and must be in place before you begin making VAT-liable supplies. The application is typically submitted some time before business operations commence, and companies based outside the EU are required to appoint a fiscal representative. In this context, local knowledge and language skills are crucial for navigating the process quickly and securely.

How TIMEVAT helps you in Croatia

TIMEVAT is your specialist partner for international finance and exports, with years of experience in guiding companies safely through foreign VAT, customs, and excise duty requirements. We speak the language, know the local procedures, and act as your VAT representative before the Croatian authorities. We serve as your extended arm in dealings with the authorities and look after your business as if it were our own.

• Registration – we handle your Croatian VAT registration and the appointment of a fiscal representative, where required.
• Filing and Compliance – we manage your ongoing VAT returns, EU sales lists, and deadlines, so you avoid fines and interest.
• VAT Refund – we claim back Croatian VAT on your expenses—correctly documented and on time.

Frequently asked questions about VAT in Croatia