The supply of goods by a non-resident is subject to VAT in Croatia.
When a non-resident has an establishment in Croatia, the establishment must register for and pay VAT, when the registration threshold is met.
A non-resident not having any establishment in Croatia but supplying the following goods and services in Croatia, is required to register for VAT regardless of meeting the standard registration threshold:
- Intra-community supplies and intra-community acquisitions;
- Supplies of goods and services not subject to the reverse charge; and
- Export supplies.
If the supplier is resident in another EU country, they may register directly or appoint a tax representative. If the supplier is resident in a non-EU country, they must appoint a tax representative that has an establishment or permanent address in Croatia.
In general, if the customer is a taxable person, they are required to withhold the VAT payable on the supply and make payment on behalf of the supplier. Individual consumers are generally not considered taxable persons.
Effective 1 January 2019, non-resident taxpayers that are registered for VAT in Croatia are not eligible to apply the reverse charge mechanism to their local supplies and are required to charge VAT. Hence, reverse charge mechanism is applicable only to non-residents not registered for VAT purposes in Croatia.