- Croatia has introduced a draft bill to amend the VAT Act to enhance compliance and support small enterprises.
- The amendments aim to align national legislation with EU directives and improve VAT administration efficiency.
- Key proposed changes include:
- Implementation of a special VAT scheme for small enterprises to simplify registration and reporting.
- Clarification of the place of supply for digital services to ensure VAT is applied in the consumer’s jurisdiction.
- Increase in the VAT registration threshold from €40,000 to €50,000 in annual turnover.
- Abolition of the reciprocity requirement for VAT refunds, allowing non-EU businesses to claim refunds on the same terms as EU businesses.
- Allowing businesses to deduct input VAT based on decisions from the Croatian Tax Administration to streamline recovery and improve cash flow.
- The bill was open for public consultation until October 24, 2024, and will incorporate stakeholder feedback before parliamentary approval.
- These amendments reflect Croatia’s commitment to enhancing its VAT system and supporting small enterprises.
Source: fiscal-requirements.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
