VAT Returns & Recovery in Croatia
The Croatian VAT filing requirements are outlined in Article 85 of the VAT Act. All registered taxable persons in Croatia must submit regular returns containing information on all supplies and inputs.
The frequency of VAT returns depends on the business’s turnover and can be monthly or quarterly. For monthly returns, the deadline for submission is the 20th day of the month following the end of the taxable period.
Read more about VAT recovery and VAT returns in Croatia in our comprehensive guide.
VAT Returns in Croatia
Companies that have a fixed establishment or are established in Croatia and had an annual value of supplied goods and services, including VAT, below 106,178.25 euros in the previous calendar year may opt for quarterly returns. Forms for VAT filing can be accessed through the Ministry of Finance’s ePorezna website.
Filing Deadline
The VAT Act’s Article 85 outlines the requirements for VAT filing in Croatia. Croatian taxpayers must file periodic returns that detail all supplies and inputs. The frequency of VAT returns in Croatia is monthly or quarterly, depending on revenue. The deadline for monthly returns is on the 20th day of the month following the end of the taxable period. Businesses with a fixed establishment in Croatia and less than HRK 800,000 of provided goods and services, including VAT, in the preceding fiscal year can file quarterly reports.
Most Croatian VAT returns must be submitted electronically. The Ministry of Finance’s ePorezna website provides forms for submitting VAT.
To avoid penalties, the Tax Administration must receive payment of the VAT liability on the VAT return by the end of the month following the accounting period. Croatia imposes late payment interest at a statutory rate published every six months. Penalties of up to HRK 500,000 may be imposed for different types of defaults with a taxpayer’s VAT obligations.
These penalties can be charged for:
- Incorrect determination of the taxable amount: HRK 2,000.00 to HRK 500,000.00.
- Failure to calculate VAT at the prescribed rate: HRK 2,000.00 to HRK 500,000.00.
- Failure to include all of the prescribed information in an invoice: HRK 1,000.00 to HRK 200,000.00.
- Failure to calculate VAT in case of reverse charge: HRK 1,000.00 to HRK 200,000.00.
- The amount of VAT in an invoice is not expressed in HRK: HRK 1,000.00 to HRK 200,000.00.
There are several more provisions in relation to penalties mentioned under Articles 130 and 131.
Global VAT Compliance can help you with all aspects of your VAT compliance in Croatia. It is important to take action before the Croatian Tax Authority issues notifications, therefore, for more information, please contact one of our experts at support@gvc.tax
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VAT Recovery in Croatia
Article 58 of the VAT Act in Croatia permits a taxable person to reduce their VAT liability in a given taxable period by applying a credit for input VAT charged by their suppliers. This credit can be used to lower the VAT liability to an amount below zero.
The following conditions must be fulfilled to claim input tax:
- The recipient, acquirer, or importer of goods or services must be a taxable person.
- The goods and services must be acquired for the purpose of carrying out taxable supplies.
- The claimant must possess a VAT invoice for the supply, or a unique customs declaration for imports, with a specified amount of VAT due or enabling the amount to be calculated.
- In the case of advance payment, the payer must hold a relevant invoice.
- The VAT return of the taxable person must specify the amount of VAT due and all necessary information for calculating the VAT amount for the acquisition of goods within the EU.
Refunds
A taxpayer can claim a refund under Article 66 of the Croatian VAT Act if input VAT exceeds output VAT in a reporting period.
The normal VAT return is used to claim refunds. If a tax inspection is conducted, the Tax Administration should reimburse the excess VAT within 30 days of filing the VAT return, and at the latest, within 90 days.
Filing Procedures
Croatian VAT returns must be filed electronically in most cases. Forms for submitting VAT can be found on the Ministry of Finance’s ePorezna website.
Last Updated: 29/12/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
