VAT Application Threshold Increasement

In 2021 set of Croatian tax reforms the one in regards to Value added tax stands out as the current HRK 7.5 million threshold of the taxation procedure according to the collected fees has been increased to HRK 15 million. Taxpayers who did not make deliveries of more than HRK 15 million in 2020 can calculate and pay the VAT obligation on the basis of collected fees from January 2021.

In addition, the possibility of applying the VAT accounting category to imports from third countries is being expanded. It will be considered that VAT has been paid upon import if the taxpayer entered in the register of VAT payers declares it as an obligation in the VAT return. For such method of calculation and payment of VAT the Customs Administration has previously, with fulfilled conditions, issued an approval through the customs declaration on the payment of VAT upon import through a VAT return.