Croatia has introduced a draft bill to amend the VAT Act, aligning it with EU directives and enhancing efficiency for businesses, particularly small enterprises. Key changes include a special VAT scheme for small businesses, raising the VAT registration threshold to €50,000, and abolishing the reciprocity requirement for VAT refunds to non-EU businesses. The amendments aim to simplify VAT compliance, improve cash flow, and foster cross-border trade
Croatia introduces a new draft bill proposing key amendments to the VAT Act for enhanced compliance and support for small enterprises.
Public
Croatia
Author: Ivana Picajkić
Category:
Fiscal subject related
Views:
406
Content accuracy validation date:
29.11.2024
Content accuracy validation time:
07:52h
A new draft bill has been introduced, proposing several amendments to the existing Value Added Tax (VAT) Act in Croatia. These changes aim to align national legislation with European Union directives and improve the efficiency of VAT administration, particularly benefiting small enterprises and international businesses. The proposed amendments were open for public consultation via e-Građani until October 24, 2024.
The proposed changes are as follows:
- Implementation of the EU Directive on Small Enterprises: The bill seeks to transpose EU Directive 2020/285 into national law, establishing a special VAT scheme for small enterprises. This scheme will simplify VAT registration and reporting processes, reducing administrative burdens for eligible small businesses.
- Clarification of Place of Supply for Digital Services: The amendments will clarify the place of supply for services provided over the internet to non-taxable persons. This change aligns with EU regulations, ensuring VAT is applied in the consumer's jurisdiction, particularly benefiting businesses offering digital services.
- Increase in VAT Registration Threshold: The threshold for mandatory VAT registration will be raised from EUR 40,000 to EUR 50,000 in annual turnover. This adjustment aims to lessen the administrative burden on smaller businesses and aligns with broader EU practices.
- Abolition of Reciprocity Requirement for VAT Refunds: The existing reciprocity condition for VAT refunds will be abolished, allowing non-EU businesses to claim VAT refunds on the same terms as EU-based businesses, thereby facilitating cross-border trade.
- Deduction of Input VAT Based on Tax Administration Decision: Businesses will now be allowed to deduct input VAT based on decisions issued by the Croatian Tax Administration. This change is intended to streamline the VAT recovery process and improve cash flow for businesses.
The final version of the bill will incorporate stakeholder feedback from the consultation period before being submitted for parliamentary approval. These proposed amendments reflect Croatia's commitment to enhancing its VAT system while supporting small enterprises and improving compliance for all businesses.
Other news from Croatia
New webinar was uploaded: Recorded webinar: EV Chargin in Europe - Green Growth Meets Fiscal Reality
Author: Gordana Lakić
On June 19th, 2025, Fiscal Solutions organized a free webinar on the topic of "EV Charging in Europe—Green Growth Meets Fiscal Reality." The webinar was held by Fiscal Solutions Sales Manager Gordana Lakić. Let’s find out more on this! Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Croatia has just published the new Law on Fiscalization that impacts both B2C and B2B transactions (Fiscalization 2.0)!
Public
Croatia
Author: Tara Nedeljković
Croatia
Author: Tara Nedeljković
Croatia has published a new Law on Fiscalization (Official Gazette 89/25) introducing comprehensive rules for both B2C receipt fiscalization and mandatory B2B e-invoicing, marking the shift to Fiscalization 2.0. The law takes effect on September 1, 2025, with phased implementation of e-invoicing obligations starting January 1, 2026, and extending to all taxpayers by 2027. After a lengthy preparato... Read more
New document was uploaded: S4F backoffice patch
Author: Dejan Šijačić
S4F backoffice patch is intended for users who have already installed S4F backoffice and are intended to update existing installations to latest version. To do so apply only patches that are marked with version number that is newer than your currently installed instance of backoffice. Please make sure to install all available patches sequentially (without skipping). This package contains instruction, release notes, changelog and software packages required for deployment of this software component. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New webinar was uploaded: Recorded webinar: Fiscalization and online sales in European countries
Author: Nikolina Basić
On May 15th, 2025, Fiscal Solutions organized a free webinar on the topic of "Fiscalization and online sales in European countries". The webinar was held by Fiscal Solutions Legal Consultant Nikolina Basić. Let’s delve deeper into this topic! Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Fiscalization 2.0 and what it brings to Croatian companies operating as fiscal taxpayers?
Croatia
Author: Tara Nedeljković
Croatia’s Fiscalization 2.0 reform, entering into force in phases from September 2025 to January 2027, significantly expands fiscal reporting obligations for companies. From January 1, 2026, all B2C receipts must be fiscalized regardless of payment method—including digital and account-based payments like PayPal and Apple Pay—and the scope now includes retail sales of newspapers, tobacco, and similar items. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Croatia updated its consumer rights rules with new retail price transparency measures.
Croatia
Author: Tara Nedeljković
Croatia has enacted a new regulation under the Act on Exceptional Price Control Measures requiring large retailers to publish daily, machine-readable price lists for key product categories like food, cosmetics, and household goods. These lists must include detailed product data and historical pricing as of May 2, 2025, to enhance price transparency and help consumers identify unjustified increases. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Fiscalization 2.0 in Croatia – Tax Authorities published Q&A including expanded B2C rules
Croatia
Author: Tara Nedeljković
Croatia’s Tax Authority has released a Q&A on Fiscalization 2.0, clarifying that separate software is required for B2C and B2B/B2G due to differing technical and data requirements. From January 1, 2026, B2C fiscalization will also cover payments via bank transfer, even if unpaid, and must be applied to all receipts regardless of payment method or item taxability. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login