All EU member states have a fixed format for their VAT numbers. In Croatia, it includes 11 digits and the prefix HR (e.g., HR12345678901).
The standard VAT rate in Croatia is 25%, with reduced rates of 13% and 5% on certain goods and services.
All businesses with Croatian VAT number must submit periodic VAT reports and payments.
For all companies that operate in Croatia, VAT returns must be submitted monthly or quarterly, depending on the annual revenue of the business entity.
In the case of the late filing of VAT returns and payments, the Croatian government prescribed the penalties as follows:
A penalty in the amount between HRK 1,000 and HRK 200,000 (EUR 130 – EUR 27,000) for the business entity, and HRK 500 – HRK 40,000 (EUR 75 – EUR 5,300) for the responsible person.
Non-payment or late payment of the VAT may lead to the following penalties:
Submission of incomplete or incorrect VAT returns, non-submission or late submission of VAT returns is subject to fines from HRK 2,000 to HRK 500,000 (EUR 260 to EUR 67,000) for the business entity and between HRK 1,000 and HRK 50,000 (EUR 130 and EUR 6,700) for the taxpayer’s responsible person.
According to Art. 79 (12) of the Croatian VAT Act, invoices must contain at least the following information:
Non-compliance with invoicing and accounting obligations will be penalized from HRK 2,000 to HRK 500,000 for the business entity and from HRK 1,000 to HRK 500,000 for the taxpayer’s responsible person.
From 2018, all invoices in public procurement must be issued electronically. B2B and B2C electronic invoicing is permitted but currently not mandatory.
Real-time reporting to the Croatian Tax Authorities (Porezna Uprava) is mandatory for all transactions paid in cash or using cash-substitutes (credit and debit cards).
This process of real-time reporting is called ‘fiskalizacija‘ (eng. Fiscalization) and works as described below:
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