From 1 September 2012 follow the news on economic operations here.
Search
 

Principal news of Value Added Tax (VAT) Law


The Law on Amendments to the Value Added Tax Law (Official Gazzette n. 87/09), that has become effective as of 1st of January, 2010, represent the first step in the harmonization of the Croatian tax system on value added tax according with Directive 2006/112/EC.

We especially highlight the following principal modifications:

-  abolition of lump-sum tax on 30% costs for personal transportation and 70% costs of representation, as well as the regulation of limits tax rights on mentioned costs, not fully for business purposes;  
-  definition of delivery for sample goods  or services  and gifts to business partners, that are non-taxable;
-  services taxable according to the registered seat of the services recipient (telecommunications, gas and electric energy distribution system)
-  companies and institutions providing financial services (banks, insurance companies and other financial institutions) will no longer be completely VAT exempt;
-  foreign businesses, without the registered seat, i.e. residence or temporary residence, delivering goods or services in Croatia are required to register a tax representative;
-  definition of tax base by import;
-  tax exemption without the right of deduction of input tax for activities of public interests; 
-  the enterpreneur's personal identification number (OIB) has to be shown on all invoices for delivered goods or provided services, instead of the identification number (MB) or unique identification citizen number (JMBG);
-  abolition of tax exemption for delivered goods and provided services within Croatia, paid from the international grants;
-  VAT exemption for export of goods in the passenger traffic for passengers without residence or temporary residence in Croatia.


<< Back
 

 

  All rights reserved B.D.M. 2010