Croatia has three VAT rates, and every company must apply the correct rate per invoice line. This guide covers each rate, which products/services it covers, and how to avoid the most common mistakes in the PDV form.
The most common rate. Applies to industrial products, IT services, consulting, B2B sales, restaurant à la carte meals, motorcycles, alcohol, non-exempt services. Example: lawyer invoice of EUR 100,000 → EUR 125,000 gross, where EUR 25,000 is VAT remitted to the Tax Administration.
Applies to lodging (hotels, hostels, AirBnB), catering (restaurants with preparation, food delivery), juices and alcoholic drinks in catering, bread, milk, eggs, cooked food, baby feeding. Example: Dubrovnik hotel — lodging 13 %, à la carte restaurant 25 %, breakfast included with lodging 13 %.
Applies to books (paper + e-books), bread, milk, certain medicines, specific category of medical equipment, daily newspapers, magazines. The narrowest rate, applied selectively. Example: book publisher sells for EUR 100 → EUR 105 gross (EUR 5 VAT).
PDV form is filed monthly for all VAT payers in Croatia. Deadline: by the 20th of the following month. Quarterly is allowed only for small payers < EUR 35,000 annual turnover. VAT registration threshold: EUR 40,000 annual turnover (since 2024). Late filing: EUR 100–5000 fines + interest rate 7.5 % p.a. on outstanding amount.
Talk to us about how the 4b2b ecosystem fits into your existing Fiscalization 2.0 flow. We have implementations from 50-employee firms to ZSE-listed companies.
