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Public Croatia Author: Vukašin Santo
Taxable persons established in Croatia with 2025 annual supplies not exceeding EUR 2,000,000 may opt to apply the VAT cash accounting scheme from 1 January 2026, provided they notify the Tax Administration by 31 December 2025. Once opted in, the scheme must be applied for at least three years, with VAT accounted for upon receipt of payment and input VAT deductible only after the supplier’s invoice has been paid.
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Content accuracy validation date: 16.12.2025
Content accuracy validation time: 08:56h

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:

  • the obligation to account for VAT arises upon receipt of payment, and

  • 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.

 
 

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