Croatia

Croatia

Explore the requirements and rules that apply to electronically supplied services in Crotia.

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Registration requirements and timing

Is a non-resident vendor, without permanent establishment, selling cross-border electronically supplied services to a B2B customer located in your jurisdiction required to register for and charge VAT/GST?

No, reverse charge applies

 

Is a non-resident vendor, without permanent establishment, selling cross-border electronically supplied services to a B2C customer located in your jurisdiction required to register for and charge VAT/GST? 

It is optional, one can apply the MOSS scheme

 

If there is not a requirement to register B2B , is there either

a) a scheduled introduction of such a requirement,
b) a draft legislative proposal to introduce such a requirement,
c) a general proposal or review by the authorities of whether to introduce such a requirement. If yes, please specify

None of the listed

 

If there is not a requirement to register B2C , is there either
a) a scheduled introduction of such a requirement,
b) a draft legislative proposal to introduce such a requirement,
c) a general proposal or review by the authorities of whether to introduce such a requirement. If yes, please specify

It is optional, one can apply the MOSS scheme

 

Non- EU Suppliers: If your country requires non-resident sellers of e-services to register for VAT/GST, when did/will those rules come into effect?

01/07/2013

 

EU Suppliers; If your country requires non-resident sellers of e-services to register for VAT/GST, when did/will those rules come into effect?

01/01/2015

 

Where the services are supplied through an interface or a portal such as a marketplace for applications (e.g. Google Play or the App Store), is the originator of the content or the interface/portal responsible for registering for and remitting the VAT/GST on those services?

It is not specifically prescribed which party is responsible for registering for VAT in case when the services are supplied trough an interface or a portal. Generally, the supplier i.e. the entity which supplies the services directly to the final customer is required to register for VAT in Croatia.

 

Thresholds, specific registration and other compliance requirements

What is the applicable registration threshold, in local currency, for electronically supplied services by a non-resident vendor (if any)

0

 

If there is a registration threshold, what is the periodical limit (e.g. annual, quarterly, monthly etc.)?

There is no threshold

 

If registration is required, is it a simplified registration (collection of output tax only), or a standard registration (collection, input tax credits, etc.)?

Non-resident vendors have the option to register either in each EU Member State where B2C sales are made, in which case the registration would be standard, or register under the Mini One Stop Shop (MOSS) an EU wide simplified registration (collection only)

 

Is a non-resident vendor, registered for VAT/GST purposes because of cross border sales of services, required to issue a VAT/GST compliant invoice? (complying with the VAT/GST invoicing requirements in the country of consumption, rather than supplier’s country)

Yes

 

Where an EU supplier is already registered for VAT purposes in your jurisdiction, but has no establishment (e.g., distance sales), should electronic supplied services provided to a customer in your jurisdiction be reported in your domestic VAT return or the MOSS return where the supplier is established

It is optional

 

Scope of what is taxed

Does the requirement to register apply only to B2C transactions, or to both B2C and B2B transactions?

B2C

 

Do the requirements apply to all services provided electronically?

Yes

 

Do the requirements apply to digital streaming of content (audio, image, video)?

Yes

 

Do the requirements apply to digitally supplied software and apps,

Yes

 

Do the requirements apply to cloud storage?

Yes

 

Do the requirements apply to internet based voice communication services e.g. VoIP?

Yes

 

Do the requirements apply to telecom services?

Yes

 

Do the requirements apply to digital streaming of content?

Yes

 

Do the requirements apply to broadcasting services?

Yes

 

Do the requirements apply to any services NOT mentioned in the previous sections? If so which ones?

It is not specifically prescribed in Croatian VAT legislation whether the requirement of VAT registration applies to the services posed above. Further, there is no official guidance on those specific services from the Croatian Tax Authority either. In our view, the services the questions above would generally fall under the definition of electronically supplied services, telecommunication services and services of radio and TV broadcasting for which the VAT registration requirement applies, as their place of taxation is deemed Croatia.


Further to the above, e-services as defined by the Croatian VAT Law specifically include the following:

  1. Website supply, web-hosting, distance maintenance of programs and equipment;
  2. supply of software and updating thereof;
  3. supply of images, text and information and making available of databases;
  4. supply of music, films and games, including games of chance and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events;
  5. supply of distance teaching - not mentioned in the previous sections.

 

For further information please contact

Maja Maksimovic
Director
T +38515390147
E mmaksimovic@kpmg.com

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