Croatia — Tax: Vat

Why this matters

Relocating to Croatia for work or business will likely involve VAT considerations, and understanding these rules can help avoid costly mistakes.

Key facts

• The Tax Administration lists four rates: 0%, 5%, 13% and 25%; the general rate is 25%.
• The 13% rate covers accommodation services and accommodation with breakfast, half or full board in hotels and similar facilities.
• The 5% rate covers goods such as bread and milk.
• A 5% rate applies to certain energy and heating items until 31 March 2027, after which 13% applies.

Steps

1. Registering for VAT — To register for VAT in Croatia, an individual or business must have annual turnover of at least HRK 2.5 million (approximately €330,000). Registration is typically done with the State Administration Office (Državna uprava).
2. Applying VAT Rates — Croatia uses the goods and services (G&S) method for VAT accounting.