Croatia VAT Compliance Guide
Croatia applies a standard VAT (PDV) rate of 25% (reduced 13% / reduced 5%) under the Zakon o porezu na dodanu vrijednost. The compulsory registration threshold is €40,000 annual turnover. Filing is monthly (or quarterly for small schemes). Mandatory B2G e-invoicing through the eRačun platform has been in force since 2019, and a B2B e-invoicing mandate is planned in line with the EU ViDA direction. Croatia adopted the euro on 1 January 2023, replacing the kuna.
Croatian VAT is administered by the Porezna uprava (Tax Administration). The 25% standard rate is among the higher EU rates, and the €40,000 threshold (re-stated in euro after the 2023 currency change) is relatively low. The eRačun e-invoicing platform — based on Peppol / UBL and the CTCRO model — has been mandatory for B2G since 2019, and the government has signalled a phased B2B expansion aligned with EU ViDA. Since Croatia adopted the euro in 2023, cross-border invoicing friction with other eurozone members has dropped. The practical burden is ensuring supplier OIB (VAT) numbers are correct, the right PDV rate is applied, and invoices to public bodies are in the eRačun XML format.
VAT Rates
| Rate | Applies To |
|---|---|
| 25% | Standard rate — most goods and services |
| 13% | Reduced rate — newspapers, hotel accommodation, restaurant and catering services, certain energy (gas, electricity) |
| 5% | Super-reduced — books (including e-books), certain foodstuffs (bread, milk, edible oils, baby food), medicines, medical equipment |
| 0% | Intra-community supplies, exports, international transport |
Registration Thresholds
| Scheme | Threshold |
|---|---|
| Domestic turnover | €40,000 rolling 12-month period (re-stated from HRK 300,000 on 1 January 2023) |
| Distance sales / cross-border services (EU) | €10,000 combined annual threshold across all EU Member States |
| Non-established businesses | Register before making any taxable supply in Croatia |
Filing Requirements
VAT return (PDV obrazac)
Monthly (or quarterly for businesses under the €40,000 turnover that have opted for quarterly). Filed via the Porezna uprava ePorezna portal, payment due by the 20th of the month following the period. An annual VAT return is also required.
eRačun (B2G e-invoicing)
Invoices to public-sector buyers must be submitted through the eRačun platform in structured XML (UBL 2.1) format via Peppol access points, mandatory since 2019. Paper and PDF-only invoices are not accepted for B2G.
VIES / Intrastat
VIES recapitulative statement of intra-EU supplies, filed with the PDV return. Intrastat required above annual intra-EU trade thresholds.
E-Invoicing Status
The eRačun platform has been mandatory for B2G e-invoicing since 2019 — based on Peppol / UBL 2.1 and integrated with the EU CEF e-invoicing building block. A B2B e-invoicing mandate is planned, aligned with the EU ViDA digital reporting framework, and is expected to phase in from 2026–2027.
Key Deadlines
VAT return + payment: 20th of the month following the period (e.g. 20 April for the March period). eRačun B2G submission: within the agreed contract deadline, typically before payment. VIES: with the PDV return.
How Nika Helps
Nika captures every supplier invoice — supplier OIB (VAT) number, the correct Croatian VAT rate (25% / 13% / 5%), net, VAT, gross — and files the original PDF the day it arrives, from {price} per processed invoice. That gives the accountant complete records to prepare the PDV return and reconcile against eRačun submissions. Nika does not file the return itself.
When did Croatia switch from kuna to euro for VAT?
Croatia adopted the euro on 1 January 2023. The €40,000 VAT threshold is the euro equivalent of the previous HRK 300,000 threshold. All VAT returns and payments are now in euro.
What is the eRačun platform?
eRačun is Croatia's mandatory B2G e-invoicing platform, live since 2019. It accepts structured XML (UBL 2.1) invoices via Peppol access points. A B2B expansion is planned, aligned with EU ViDA.