Non-resident taxpayers who are registered for VAT purposes in Croatia will no longer be eligible to apply local reverse charge mechanism from the Article 75 (2) of the VAT Act to their local supplies. In other words, from January 1, 2019, VAT registered non-resident’s will have to charge VAT on local supplies. Local reverse charge will still apply to local supplies of non-resident’s that are not registered for VAT purposes in Croatia.
The scope of application of local reverse charge mechanism to the supplies between domestic taxpayers (Article 75 (3) of the VAT Act) is extended is extended, and from 1 January 2019 will also apply to the supply of concrete steel and iron and products thereof.
Source: Deloitte
