Last Call: Croatia VAT Reform Consultation Closes August 30

Croatia’s consultation on draft VAT amendments is open until August 30, 2026. The proposal mainly implements ViDA changes to OSS/IOSS, cross-border B2C sales, online platforms, and intra-EU transfers of own goods. Affected businesses should review their VAT and e-commerce processes and submit comments.

Croatia’s public consultation on the Draft Proposal for Amendments to the Value Added Tax Act remains open until August 30, 2026. The proposed amendments are intended primarily to implement the next stage of the EU’s VAT in the Digital Age (ViDA) reform and introduce changes affecting OSS/IOSS, cross-border B2C transactions, online platforms and transfers of own goods within the EU. The consultation was opened on July 31, 2026, and interested businesses and other stakeholders can still submit their comments through Croatia’s official e-Savjetovanja portal before the consultation closes. The proposal remains a draft and may therefore still be amended before adoption.

One of the main objectives of the proposal is to align Croatian VAT legislation with Council Directive (EU) 2025/516, which introduced amendments to the EU VAT Directive under the ViDA framework. The Croatian proposal currently focuses primarily on changes taking effect from January 1, 2027, while also preparing for further changes from July 1, 2028.

Proposed changes

• OSS and IOSS rules would be expanded and further clarified.
• The EUR 10,000 threshold for intra-EU distance sales would apply only to distance sales of goods dispatched from the Member State where the taxable person is established.
• Businesses could choose not to apply the EUR 10,000 threshold and instead tax supplies directly in the Member State of consumption. This choice would apply for two calendar years.
• The non-Union OSS scheme would be expanded to cover all B2C services supplied within the EU by taxable persons established outside the EU.
• Online platforms could have an expanded deemed-supplier role where non-EU sellers supply goods to certain EU customers through the platform.
• Businesses using the special VAT scheme for small enterprises would not be able to use IOSS.
• VAT refund rules for taxpayers using OSS/IOSS would be further clarified.
• From July 1, 2028, a new OSS-based mechanism is planned for reporting transfers of a business’s own goods between EU Member States.
• Existing call-off stock arrangements started by June 30, 2028 would remain under transitional rules until June 30, 2029.
• The proposal primarily implements changes resulting from Council Directive (EU) 2025/516 under the ViDA framework.

What Businesses in Croatia should do

The proposal is particularly relevant for retailers, e-commerce businesses, marketplaces and other companies conducting cross-border B2C transactions or moving stock between EU Member States.

Affected businesses should:

• Review their current OSS/IOSS setup and determine whether the proposed changes affect existing VAT reporting processes.
• Check cross-border B2C sales configurations, particularly the application of the EUR 10,000 distance-sales threshold.
• Assess marketplace and platform processes where deemed-supplier rules may apply.
• Review stock transfers between EU Member States and prepare for the planned OSS mechanism from July 1, 2028.
• Evaluate ERP, e-commerce and tax determination systems to identify potential changes required by the new VAT rules.
• Submit comments or concerns by August 30, 2026, if the proposal creates operational, technical or compliance issues for the business.
• Monitor the final legislation after the consultation closes, as the draft may still change before adoption.

As the legislation is still in draft form, businesses and software providers that may be affected can submit comments during the public consultation. The consultation closes on August 30, 2026, after which the final legislative text should be monitored for any changes resulting from the consultation process. For now, these changes are

The main source confirming the official deadlines and updates above is the provided by the Croatian Tax Authority (Porezna uprava). Source

Filip Kalaba, Junior Legal Consultant at Fiscal Solutions