Business Relocation to Croatia: Customs, VAT, and Compliance
TL;DR: Relocating or expanding a business to Croatia can be straightforward—if you set up your tax and customs compliance correctly from day one. This guide breaks down Croatia’s 2025 rules on VAT (PDV), customs, invoicing, and trade reporting into a practical roadmap for foreign entrepreneurs and CFOs looking to establish or scale operations in Croatia.
VAT rates and scope
Croatia applies a standard VAT rate of 25%, with reduced rates of 13% and 5%, and a 0% rate for certain categories such as international transport and specific goods and services under Croatian law.
When registration is mandatory
From 1 January 2025, the mandatory VAT registration threshold has increased to €60,000 of annual taxable turnover for small domestic enterprises.
Non-resident businesses do not benefit from this threshold—if you supply taxable goods or services in Croatia, registration may be required immediately, depending on the nature of your transactions and whether the reverse-charge mechanism applies.
In practice:
Local small businesses can stay outside the VAT system until they pass €60,000, but voluntary registration can allow recovery of input VAT on startup expenses.
Non-EU entities may need a fiscal representative for VAT registration, depending on reciprocity agreements.
Filing frequency and import VAT
VAT returns are filed monthly or quarterly, depending on turnover. Croatia permits postponed import VAT accounting, allowing importers to self-account for VAT on their returns rather than paying at customs clearance—an excellent way to preserve cash flow during setup and import-heavy operations.
Croatia already mandates e-invoicing for all business-to-government (B2G) transactions. The system will expand to business-to-business (B2B) invoicing from 1 January 2026, with a testing phase beginning 1 September 2025, and further rollout to additional sectors in 2027.
Businesses should ensure their accounting or ERP systems are capable of producing structured, compliant e-invoices in advance of the 2026 transition.
EU position and customs authority
As an EU Member State, Croatia operates under the EU Customs Union, with oversight handled by the Croatian Customs Administration within the Ministry of Finance.
EORI: your customs identifier
Before any import or export from outside the EU, a company must obtain an EORI number (Economic Operators Registration and Identification). This number is required across the EU and should be secured before engaging in any customs-related activity.
Duties, VAT, and customs valuation
For imports from outside the EU, customs duties are calculated according to the EU’s Common Customs Tariff, and import VAT is charged on the CIF value (cost, insurance, and freight), including duty and related fees.
Companies may use postponed import VAT accounting to avoid upfront payment of VAT at the border.
Simplified procedures:
Small, non-commercial consignments carried by individuals may qualify for simplified customs assessments with lower duties, though standard import procedures apply to commercial shipments.
Common customs regimes
Free circulation: Goods become EU goods once all import formalities and taxes are paid.
Inward processing / warehousing: Duties and VAT are suspended for goods processed or stored in Croatia before being re-exported or released for EU sale.
Companies involved in trade between EU Member States must monitor Intrastat obligations.
For 2025, the reporting thresholds are:
€450,000 for arrivals (purchases from other EU countries)
€300,000 for dispatches (sales to other EU countries)
Once a business crosses these thresholds, Intrastat declarations must be filed monthly, typically by the 15th of the following month.
Domestic B2B sales: Often reverse-charged if the customer has a Croatian VAT ID, but certain supplies require local registration.
E-commerce / distance sales: Businesses holding stock or fulfilling orders from Croatia must register locally or use the EU OSS scheme.
Land-related or installation services: Typically trigger local VAT obligations and registration.
Map your supply chain: Identify EU vs. non-EU flows and where title transfers—this determines VAT and customs responsibilities.
Secure identification: Obtain your EORI and Croatian VAT ID before beginning trade.
Assess fiscal representation: Required for certain non-EU entities operating in Croatia.
Prepare for e-invoicing: Ensure your systems can issue structured e-invoices and store digital audit records.
Optimize import cash flow: Apply postponed import VAT accounting to reduce upfront costs.
Monitor Intrastat thresholds: Automate reporting once annual values reach €450,000 (arrivals) or €300,000 (dispatches).
Using outdated VAT thresholds: The previous €40,000 limit no longer applies—update your internal triggers to €60,000.
Waiting too long for e-invoicing readiness: The 2026 rollout will require full compliance; start integration now.
Paying import VAT at the border: Always use postponed accounting if eligible.
Ignoring Intrastat filings: Rapid growth can quickly trigger obligations mid-year.
Assuming all EU goods are duty-free: Duty-free applies only to intra-EU trade; third-country goods follow EU tariff rules.
Croatia offers a stable EU framework and business-friendly compliance environment. Its postponed import VAT system and higher VAT registration threshold simplify cash flow and startup operations. By preparing now for B2B e-invoicing and ensuring your EORI and VAT registrations are in place, you’ll be ready for a smooth and compliant launch into the Croatian market.
Need help setting up?
Relocation Croatia can handle the entire process—from VAT registration and customs setup to accounting and import documentation—so you can focus on running your business confidently.