In accordance with the Croatian Value Added Tax Act, a taxable person established in Croatia whose total value of supplies in 2025 did not exceed EUR 2,000,000 (excluding VAT) may apply the VAT cash accounting scheme in 2026.
A taxable person wishing to apply this scheme must submit a written notification to the competent Tax Administration no later than 31 December 2025.
Upon submission, the taxpayer may begin applying the cash accounting procedure from 1 January 2026 and is required to use this method for a minimum period of three years. Under this procedure:
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the obligation to account for VAT arises upon receipt of payment, and
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the right to deduct input VAT arises after payment of the supplier’s invoice for delivered goods or services.
Further details on the EUR 2,000,000 supply threshold, excluded supplies, and a sample declaration are available to subscribers in the “You May Be Interested” section.