Foreign vendors and suppliers conducting taxable transactions in an EU member state may be obligated to appoint a fiscal representative to fulfill their VAT obligations. This procedure is mandatory in Croatia, but for non-EU companies only. If you are looking for the services of a fiscal representative in Croatia, our agents can help. Also, the services of our company formation agents in Croatia are at your disposal for business incorporation.
| Quick Facts | |
|---|---|
| Who needs a fiscal representative? | A fiscal representative is mandatory for non-EU companies conducting taxable transactions in Croatia. Companies from other EU member states can appoint one voluntarily to simplify the process. |
How is a fiscal representative known as? | -fiscal representative, -tax representative, -tax agent |
Responsibilities of a fiscal representative | VAT registration, preparing and submitting VAT returns, paying VAT, claiming VAT refunds, handling communication with the Croatian tax authorities |
| Who can appoint a company fiscal representative in Croatia? | The business owner |
| VAT rates in Croatia | The standard VAT rate is 25%. Reduced rates of 13% and 5% apply to specific goods and services, such as accommodation, certain foods, and publications. A 0% rate may also apply to certain items. |
| VAT registration threshold | Non-EU companies don’t have a threshold, they are required to register for VAT regardless of the value of their transactions. |
| VAT returns filing frequency | Monthly or quarterly, depending on the annual turnover |
| Penalties for non-compliance | Fines range from HRK 2,000 to HRK 500,000. |
| Dealing with tax-related documents | YES |
| Obtaining a VAT number | The fiscal representative in Croatia will manage the VAT registration process. |
| Timeframe to get a VAT number | 8 days |
| Tax minimization options (YES/NO) | YES |
| Dealing with tax audits | Yes, a fiscal representative is able to represent the company during tax audits by the Croatian tax authorities. |
| Assistance with the VAT refund process | Yes, one of their main responsibilities is to manage the VAT refund process. |
| Working with our fiscal representative in Croatia | Our specialists handle all VAT-related procedures, ensuring your company remains compliant. |
Table of Contents
Who needs a fiscal representative in Croatia?
Following the guidelines set forth in the EU VAT Directives, a Croatian fiscal representative is not obligatory for a company domiciled in another EU member state. Residents of EU countries have the option to directly register with the Croatian Tax Administration. However, for non-EU companies, a fiscal representative is mandated to be in charge of Croatian VAT. There is a specific arrangement tailored for non-EU companies offering electronically supplied services, permitting them, subject to specific conditions, to directly register with Croatian VAT authorities. This scheme aims to streamline compliance procedures for non-EU entities operating within Croatia’s tax framework, ensuring adherence to VAT regulations, while facilitating their business operations within the country. If you are a non-European company conducting trade, our fiscal representatives in Croatia can assist you.
The documents one has to prepare in order to start working with a fiscal representative in Croatia are:
- power of attorney,
- Certificate of Incorporation,
- Tax Domicile Certificate,
- OIB Application – An OIB (Osobni identifikacijski broj) is a Personal Identification Number assigned to persons and entities like companies.
If your company needs any accounting services, our accountants in Croatia are also at your assistance.
Joint and several responsibility
It is essential to know that, when a foreign company hires a fiscal representative in Croatia, he/ she becomes a co-debtor in the eyes of the Croatian government. The joint and several liability (Solidarno Odgovornost) means that there will be a shared legal debt. This is the reason why fiscal representatives in Croatia mitigate this risk by requiring the foreign company to provide either a bank guarantee or a substantial cash deposit to cover potential financial liabilities.
When opening a company in Croatia, it is important to know the different roles of service providers. While the fiscal representative assumes the legal liability for value added tax compliance and reporting, companies collaborate with accountants in Croatia to handle general bookkeeping, payroll processing, and personal income tax filings. If your company needs assistance with services such as payroll in Croatia, you can contact our experiences accountants.
VAT registration requirements in Croatia
The mandatory VAT registration threshold for businesses established in Croatia is €60,000. There are exceptions for scenarios where a Croatian established company must register for a VAT ID, even if its annual turnover is below the €60,000 threshold:
- if the value of its purchases from other EU member states exceeds €10,000;
- if a Croatian company receives certain services from abroad (EU or non-EU);
- when it supplies services to a VAT-registered business in another EU member state.
The required frequency for Croatian companies to file their VAT returns depends on their annual turnover and whether they are engaged in EU cross-border transactions. A company with a fixed presence in Croatia can file either monthly or quarterly, based on its revenue. If the company’s total value of supplies was below €110,000 in the previous calendar year, it has to file for VAT quarterly. If the total value of supplies was above €110,000, it is legally required to file for VAT monthly.
When opening a foreign company in Croatia, the VAT registration threshold is zero. Registration is required from the very first taxable transaction. Foreign businesses, including those with a fiscal representative, are required by law to file VAT returns monthly. They do not qualify for the quarterly filing option available to some local companies.
Forms required to apply for VAT number in Croatia
The Croatian tax authorities impose the completion of the following forms:
- OIB form – required for acquiring a personal identification number;
- P-PDV form.
These requirements serve to ensure the accuracy and completeness of the registration process, enabling the Croatian tax office to manage and oversee VAT obligations for businesses operating here. Our fiscal representative in Croatia can help you register for VAT in this country.
With the help of our company incorporation specialists in Croatia, you can get comprehensive knowledge of local regulations. They can further assist you in opening a company in Croatia.
How can we help you?
Our specialists can assist foreign businesses with fiscal representation in Croatia by providing expert guidance and support throughout the process, like:
- understanding Croatian tax laws: Our Croatian fiscal representatives can provide in-depth knowledge of Croatian tax laws and regulations, ensuring that foreign businesses understand their obligations and responsibilities regarding VAT;
- registration process: Our agents can assist with the registration process for fiscal representation in Croatia, ensuring that all necessary paperwork is completed accurately and submitted on time;
- compliance management: Our specialists can help foreign businesses stay compliant with Croatian tax laws by providing ongoing support and advice. This includes ensuring that all tax filings are completed correctly and on time;
- representation in legal matters: In the event of any legal issues or disputes related to fiscal representation, our consultants can represent foreign businesses in negotiations, litigation, or other legal proceedings;
- tax planning: We can offer strategic tax planning advice to help foreign businesses minimize their tax liabilities in Croatia, while remaining compliant with local laws;
- communication with tax authorities: Our fiscal representatives can serve as intermediaries between foreign businesses and Croatian tax authorities, handling communications and negotiations on behalf of their clients;
- updates on regulatory changes: Our agents can keep foreign businesses informed about any changes to Croatian tax laws or regulations that may affect their fiscal representation requirements.
Overall, having competent representation is essential for foreign businesses seeking fiscal representation in Croatia to ensure compliance with local laws and mitigate any potential risks or liabilities. Moreover, you may hire our company formation experts if you are planning to set up a company in Croatia.
Croatia trade – 2025
Below you can find Croatian import statistics for businessmen interested in opening a business in Croatia:
- Imports for the first nine months of 2025 totaled approximately €33.6 billion;
- The majority of goods came from fellow EU countries in 2025, but sourcing from outside the EU is becoming more popular;
- Imports from non-EU markets are showing significant growth, increasing by 12.2% during January–July 2025.
Besides learning about these facts, if you are seeking services related to payroll in Croatia, our agents can help. Contact our company formation experts to learn more about our services in this country.