The Croatian Official Gazette published Law No. 2508, which amends the VAT Act. The amendments include the following key measures:
- Increase in VAT registration threshold: The VAT registration threshold for businesses has been raised from 40,000 euros (US$41,798) to 60,000 euros (US$62,359).
- VAT exemptions from other EU states: Taxpayers with an annual turnover not exceeding 60,000 euros in Croatia and 100,000 euros (US$104,497) in the EU will be eligible for VAT exemptions from other EU member states.
- VAT exemptions for small businesses: Small businesses established in Croatia will be able to apply VAT exemptions from other EU states, provided their annual turnover in the EU does not exceed 100,000 euros or the relevant threshold in the respective state.
- Removal of VAT refund reciprocity condition: The law removes the VAT refund reciprocity condition for non-EU businesses.
These changes will come into effect on January 1, 2025.
Source: narodne-novine.nn.hr
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