The Croatian Tax System

Transcription

Republic of Croatia
Ministry of Finance
Tax Administration
The Croatian
Tax System
Zagreb, September, 2016
Founder:
The Republic of Croatia
Ministry of Finance,Tax Administration
For Founder:
Zdravko Zrinu{i}
Publisher:
Institute of Public Finance
For Publisher:
prof. dr. sc. Katarina Ott
Editor-in-chief:
dr. sc. Mirjana Jerkovi}
Editor:
Ksenija Sme{njak Ramov
Editorial board:
Zdravko Zrinu{i}, mr. sc. Marijana Vurai} Kudeljan
mr. sc. Martina Ciglevi}, prof. dr. sc. Katarina Ott
dr. sc. Mirjana Jerkovi}
Consulting editors:
Igor Boro{ak, Ksenija Cipek
Zoran Jan~iev, Gordana Mari}
Nada Petrovi}
Authors:
Zoran Jan~iev, Josip Supi}
Recenzenti:
Zdravko Adamovi}, Vesna Bratko, Ksenija Cipek, Renata Kal~i}
Hrvoje Mali}, Marina Vladika, mr. sc. Marijana Vurai} Kudeljan
Editorship:
Institute of Public Finance
Porezni vjesnik
Biblioteka Porezni priru~nici i bro{ure
Zagreb, Smi~iklasova 21, p. p. 320
Tel. (01) 48 19 363 / 48 86 443
Fax (01) 48 19 365
E-mail: ured@ijf.hr
www.ijf.hr
Translation:
Alkemist studio d.o.o.
Miramarska 24/6
10000 Zagreb
Graphic preparation
and print:
Denona d.o.o., Zagreb, Getaldi}eva 1
Printed in:
500 copies
ISBN: 978-953-7613-71-6
The purpose of this publication is to be used as a guide through the tax system of
the Republic of Croatia. The data in publication are updated on 25 May 2016. Additional explanations can be found on the web site of the Ministry of Finance of the
Republic of Croatia, Tax Administration, at the URL www.porezna-uprava.hr, or
at the local office of the Tax Administration according to your domicile or habitual
abode. Questions can be sent electronically using the web form WRITE TO US on the
Tax Administration website, after you choose the topic “Taxes and Tax Procedure”
and the relevant local office to which you wish to send the question
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CONTENTS
1. STATE TAXES
1.1 CORPORATE INCOME TAX (PROFIT TAX)
1.2 TAX PER TONNAGE OF THE SHIP
1.3 VALUE ADDED TAX (VAT)
1.4 EXCISE DUTIES AND SPECIAL TAXES
1.4.1 SYSTEM OF EXCISE DUTIES LEVIED ON ALCOHOL, ALCOHOLIC
BEVERAGES, TOBACCO PRODUCTS, ENERGY PRODUCTS AND ELECTRICITY
1.4.2 SPECIAL TAXES ON MOTOR VEHICLES
1.4.2.1 Motor vehicle that at the moment of entry, import or sale
in the Republic of Croatia do not have a special tax calculated
and paid, and that are registered in the Republic of Croatia
1.4.2.2 Second-hand motor vehicles (motor vehicles on which the
special tax is calculated and paid in the Republic of Croatia
and that are registered in the Republic of Croatia)
1.4.3 SPECIAL TAX ON COFFEE AND NON-ALCOHOLIC BEVERAGES
1.4.4 TAX ON LIABILITY AND COMPREHENSIVE ROAD VEHICLE
INSURANCE PREMIUMS
206
2. COUNTY TAXES
2.1 INHERITANCE AND GIFTS TAX
2.2 TAX ON ROAD MOTOR VEHICLES
2.3 TAX ON VESSELS
2.4 TAX ON COIN OPERATED MACHINES FOR GAMES FOR AMUSEMENT
208
210
212
214
3. CITY OR MUNICIPAL TAXES
3.1 SURTAX ON INCOME TAX
3.2 CONSUMPTION TAX
3.3 TAX ON HOLIDAY HOUSES
3.4 TAX ON TRADE NAME
3.5 TAX ON THE USE OF PUBLIC LAND
217
217
220
222
223
225
4. JOINT TAXES
4.1 INCOME TAX
4.2 REAL ESTATE TRANSFER TAX
226
226
281
5. TAXES ON WINNINGS FROM GAMES OF CHANCE AND FEES
FOR ORGANIZING GAMES OF CHANCE
5.1 TAXES ON WINNINGS FROM LOTTERY GAMES AND FEE FOR
ORGANIZING LOTTERY GAMES
5.2 FEES FOR OPERATING CASINO GAMES
5.3 TAX ON WINNINGS FROM BETTING GAMES AND FEE FOR ORGANIZING
BETTING GAMES
5.4 FEES FOR ORGANIZING SLOT MACHINE GAMES
5.5 FEE FOR ORGANIZING OCCASIONAL ONE-TIME GAMES OF CHANCE
5.6 FEE TO THE CROATIAN RED CROSS FROM THE PRIZE CONTEST FUND
AND LIABILITIES ON THE BASIS OF FUNDS GENERATED IN A PUBLIC
TENDER FOR SALE OF UNDIVIDED PRIZES
103
182
182
196
198
289
291
294
297
301
303
6. ANNEXES
6.1 Units of local and regional self-government according
to the degree of development
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42
46
103
306
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4
1. STATE TAXES
1.1 CORPORATE INCOME TAX (PROFIT TAX)
TAXABLE PERSONS
I. TAXABLE PERSONS LIABLE TO PAY CORPORATE INCOME TAX (PROFIT TAX)
1. A company or another legal or natural person resident in the Republic of Croatia
who is permanently and independently engaged in an economic activity for the
purpose of deriving a corporate income (profit), an income or a revenue or other
assessable economic benefits,
2. A resident permanent establishment (an inland business unit) of a non-resident
entrepreneur,
3. A natural person who derives income pursuant to the income tax regulations, if
he/she declares that he/she intends to pay corporate income tax (profit tax) instead of income tax,
4. An entrepreneur – a natural person who derives income from small business or the
activities equalized therewith, if total revenue in the preceding tax period exceeded
of HRK 3,000,000.00 or if he/she fulfills two of the following conditions:
a) total income in the preceding tax period exceeded HRK 400,000.00, or
b) the value of his/her fixed assets exceeds HRK 2,000,000.00; or
c) he/she employed more than 15 employees on average during the preceding tax
period,
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A natural person who has fulfilled the conditions listed in Item 4 and the natural
person referred to in Item 3 is to report to the competent tax administration office in
writing by the end of the current year in which the required conditions are met, and
no later than 20 days after the expiration of the tax period, or a calendar year. The
holder of a joint independent business shall act in the same manner.
5. Exceptionally, the state administration bodies, bodies of regional and local selfgovernment, the Croatian National Bank, state institutions, institutions of units of
regional and local self-government, state institutes, religious communities, political parties, trade unions, chambers, civic organizations, artists associations,
volunteer fire companies, technical culture communities, tourist boards, sports
clubs, sports associations and unions, open-end investment funds established
and operating in accordance with the law, endowments and foundations, if they
carry out an economic activity and the non-taxation of this activity would result
in their obtaining of unjustified privileges on the market,
If the people under Item 5 perform an economic activity whose non-taxation
would lead to the acquisition of unjustified privileges on the market, they are
obligated to enroll within 8 days from the beginning of carrying out such
activities in the register of taxpayers in the tax administration office according
to their headquarters. If they do not enter the register, the tax administration
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on personal initiative, or on the proposal of other taxpayers or other interested persons, determines that these persons are income tax payers for that
activity by a resolution.
6. Every entrepreneur who is not classified among the entrepreneurs listed in Items
1 – 5 and is not liable to pay income tax according to the provisions of the Income Tax Act and the profit of whom is not taxed elsewhere.
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i
i
i
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Open-end investment funds established and operating in accordance with the law
pursuant to which they have been established are not income tax payers.
RESIDENT is legal entity or natural person whose seat shall be registered in the register of companies or another register in the Republic of Croatia, or whose place of effective management and control of business is in the Republic of Croatia. Residents
shall also be entrepreneurs – natural persons with domicile or habitual residence in the
Republic of Croatia, whose business activity is enrolled in a register or other records.
NON-RESIDENT is any person who does not satisfy one of the requirements referred
to residents.
Permanent establishment (an inland business unit) of a non-resident entrepreneur
is the permanent place of business through which the non-resident carries out, entirely or in part, a business activity in the Republic of Croatia. Permanent establishments of a non-resident entrepreneur shall include in particular:
1. place of management,
2. branch,
3. office,
4. factory,
5. workshop,
6. mine, oil or gas well, stone quarry or any other place of natural resource exploitation,
7. building site, or a construction or an assembly project, which constitute permanent establishments only if they last longer than six months,
8. agent acting on his/her behalf with respect to any activity, if:
8.1 he/she has and usually exercises authorities to conclude contracts on behalf of
the non-resident entrepreneur, except where the agent’s activities are limited
to performance of business via an intermediary, a general or another agent
who is independent and who performs the operations of the non-resident
entrepreneur within its regular business activity, which is why such a place of
business shall not be considered as permanent establishment, or
8.2 he/she does not have authorities referred to in Item 8.1, but usually holds inventories of products or commercial goods from which he/she makes regular
supplies on behalf of the non-resident entrepreneur,
9. the provision of services, including advisory and business services, if the provision
of services for the same or related project lasts longer than 3 consecutive months
in any period of 12 consecutive months.
A permanent establishment shall not be the place of business of a non-resident
entrepreneur who, in Croatia:
1. uses the facilities only for the purpose of storage, disassembly or delivery of goods
or merchandise,
2. holds inventories of goods or merchandise only for the purpose of storage, disassembly or delivery of goods or merchandise,
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3. holds inventories of goods or merchandise only for the purpose of their processing by other persons,
4. maintains his/her place of business only for the purpose of purchasing goods or
merchandise or collecting information for his/her own purposes,
5. maintains his/her place of business only for his/her preparation or ancillary activities,
6. maintains his/her place of business for any combination of activities set out in
Items 1 through 5, provided that the overall activity of the place of business, resulting from such a combination, has a preparatory or ancillary character.
The business unit of foreign entrepreneurs is obliged within 8 days from the beginning
of the activity to report to the Tax Administration in order to determine tax liabilities and
allocate a tax identification number, or PIN.
A tax period is generally a calendar year. Exceptionally, the Tax Administration may at the request of a taxpayer approve a difference in the tax period
and calendar year, where the tax period shall not exceed a period of 12
months. The taxpayer cannot change the selected tax period for 3 years.
The tax period is part of the fiscal year if the period is:
1. from the beginning of operations of the taxpayer to the end of this financial
year,
2. from moving headquarters or managing jobs from abroad to within the
country by the end of the financial year,
3. which continues to the last financial year to moving headquarters or managing jobs from within the country to abroad,
4. which continues to the last business year to the day of the merger or division,
5. which continues to the last fiscal year to opening of the liquidation or bankruptcy,
6. which continues from the opening of bankruptcy by the end of the financial
year,
7. which continues from the opening until the completion of the liquidation
procedure. Tax period and payment obligations of taxes on profits and running business records pursuant to the regulations on accounting for entrepreneurs natural persons who are income tax payers on income tax from a
business or business-equated activities that become income tax payers are
obligated for the following 3 years. In justified cases and upon written request of the taxpayer that deadline may be shortened, on which the Tax
Administration shall issue a decision. Justified cases in particular are considered to be a complete change of activity performed by the tax payer and
significantly altered conditions (more than 50%) for which the taxpayer has
changed the way of taxation.
Tax period and payment obligations of income taxes and in running business
registers according to the regulations on accounting for entrepreneurs natural
persons who are income tax payers on businesses and business-equated activities that become income tax payers starts from the beginning of the tax period
following the tax period in which the requirements are met. The obligation of
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paying income taxes and running business books according to the regulations
on accounting obligates the listed entrepreneurs for the following 3 years. In
justified cases and upon written request of the taxpayer that deadline may be
shortened, on which the Tax Administration shall issue a decision. Justified cases in particular are considered to be a complete change of activity performed by
the taxpayer and significantly altered conditions (more than 50%) for which the
taxpayer has changed the way of taxation.
II. TAXABLE PERSONS LIABLE TO PAY WITHHOLDING TAX
The taxable person liable to pay withholding tax is:
1. An inland paying agent that pays to foreign entities-recipients (non-residents)
who are not natural persons,
2. The permanent establishments of a non-resident entrepreneur, when they pay
to the parent company interest, as well as royalties and other intellectual property rights (copyright, patent, licensing, trade mark, design or pattern, production procedure, production formulas, draft, plan, industrial or scientific experience and similar rights). Exceptionally, the withholding tax shall not be paid if
considerations are recognized as the revenues of a resident permanent establishment of a non-resident entrepreneur.
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In terms of the Profit Tax Act withholding tax shall be the tax on the corporate income
(profit) derived by a non-resident in the Republic of Croatia.
The withholding tax shall be paid on:
1. dividends and corporate income (profit) shares
Withholding tax is not paid if the income from dividends and shares that is made in
a tax period is reinvested, unless the gains result from the banking, or financial nonbanking sector (credit institutions, financial enterprises, credit unions, investment societies, insurance and reinsurance companies, leasing societies, payment institutions
and institutions for electronic money)
i Withholding tax on dividends and profit shares is not paid when dividends and profit shares are paid to the company that:
– is a resident of an EU Member State
– has one of the forms to which the common system of taxation is applied (applies to
related companies from different EU Member States)
– is a taxpayer of a tax to which a common system of taxation is applied, applicable
to parent and related companies from different EU Member States (not applicable
to the companies that are exempt from paying taxes or have a choice),
– if they as the recipient of dividends or profit shares for a continuous period of 24
months have at least 10% of the shares in the capital of a company which pays out
a dividend or share of the profits.
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Withholding tax is not paid on dividends and profits that are paid out of profits realized until 29 February 2012.
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2. royalties and other intellectual property rights (copyright, patent, licensing, trade mark, design or pattern, production procedure, production formulas,
draft, plan, industrial or scientific experience and similar rights) which are paid to
non-residents who are not natural persons,
3. market research services, tax and business counseling and auditor services paid to non-residents,
4. interests,
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The withholding tax shall not be paid on interest paid:
a) on commodity loans for the purchase of good used for carrying out of a taxable
person’s business activity,
b) on loans granted by non-resident bank or other financial institution,
c) to holders of government or corporate bonds, who are non-resident legal persons.
5. all kinds of services that have not been previously listed and that are
paid to entities that have their headquarters or place of effective management and supervision of operations in countries that are considered
tax asylum or financial centers, other than the EU Member States and
countries with which the Republic of Croatia concluded and administers
agreements on the avoidance of double taxation, and such state was
included in the list of Countries published on the website of the Ministry of Finance and Tax Administration of the Republic of Croatia.
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U.S. Virgin Islands, Andorra, Anguilla, Antigua and Barbuda, Aruba, Bahamas, Bahrain, Barbados, Belize, Bermuda, Christmas Island, British Virgin Islands, Brunei, Dominican Republic, Falkland Islands, Fiji, Gibraltar, Grenada, Guam, Guernsey, Guyana,
Hong Kong, Jersey, Cayman Islands, Cook Islands, Liberia, Liechtenstein, Macao, Maldives, Marshall Islands, Monaco, Montserrat, Nauru, Niue, the Netherlands Antilles,
Turks and Caicos Islands, Isle of Man, Palau, Panama, Samoa, Seychelles, St. Lucia,
Saint Kitts and Nevis, Saint Vincent and the Grenadines, Solomon Islands, Tonga,
Trinidad and Tobago, Tuvalu, Vanuatu, the Community of Dominica.
Taxation of interest and royalty payments between associated companies
in different EU Member States:
Withholding tax is not paid on payments of interest and royalties between associated companies from the various different EU Member States, provided that these
companies have been continuously connected for at least 24 months and that payments of interests and copyrights were made to the real user of the company of
another EU Member State or business unit with headquarters in the Republic of
Croatia, which is in another EU Member State.
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A trade company is considered to be associated to another trade company if the
company-payer has a direct minimum share of 25% of the capital of another trading
company (of the beneficial owner), or the trade company has a direct minimum share
of 25% of the capital of the trading company of the capital of the trading companypayer, or if the third trading company has a direct minimum share of 25% of the
capital of the payer and the other trading company of the beneficial owner but at the
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same time, these are shares between companies from EU Member States. A permanent business unit is considered to be the payer of interest and royalty payments only
if for the business unit such payment represents a tax-deductible expense in the
country Member State in which it is located.
i An EU Member State company is considered to be the beneficial owner of interest or
the author fees only if they receive these payments in their own benefit and are not
an intermediary such as an agent, and authorized person or authorized signatory for
another person.
i A permanent business unit is considered to be the beneficial owner of interests or
royalties if the claim, the right to information or use of information, which is why
interest and royalties are paid out, actually connected to that permanent business
unit, and if the interest or royalties are revenue for which that business unit in a EU
Member State of its location is a taxpayer of one of the taxes to which the common
system of taxation on interest and royalty payments between related persons from
different EU Member States is applied.
The fulfillment of the above-mentioned conditions is proved with a certificate
of the competent tax authority at the time of payment of interest or royalties
and the person paying does not deliver such a certificate, they shall pay withholding tax.
The aforementioned provisions do not apply if it is evident that the payments
have been made for the purpose of tax evasion and avoidance of taxes, and
if they are payments for the distribution of profit or return on capital, or interest on loans that include the right to participate in profits of debtors, or interest on loans that grant the loan giver a right of replacement of their rights
with the right to profits, or payments from the loan which do not include the
provisions for the return of the principal, or if the return on the principal is
due after 50 years.
If, due to a special relationship between the payer and the beneficial owner
of the interest or royalties, or between each of them and some other person,
the amount of interest or royalties is higher than the amount which would be
agreed between the payer and the beneficial owner if such a relationship did
not exist, the provisions listed below apply only to the amount that would be
agreed if there were no such relationship.
Taxation of dividends and shares in profits between associated companies
from different EU Member States:
Withholding tax on dividends and shares in profits is not paid when dividends and
shares in profits are paid if the company recipient of the dividends and shares in
profit has in an uninterrupted period of 24 months at least 10% of shares in the
capital of the company that pays out the dividend or a share of the profits.
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A recipient is considered to be a company:
1. that has one of the forms to which the common system of taxation is applied (applies to related companies from different EU Member States)
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2. which is a resident of a EU Member State in accordance with the law of the country (not applicable to residents outside the EU according to international agreements on avoidance of double taxation, concluded with non-Member States),
3. which is a taxpayer of a tax to which a common system of taxation is applied, applicable to parent and related companies from different EU Member States (not
applicable to the companies that are exempt from paying taxes or have a choice),
Withholding tax on dividends and shares in profits are paid if it is evident that the
dividend payments or profits are aimed towards tax evasion or tax avoidance.
TAXABLE BASE
I. TAXABLE BASE OF CORPORATE INCOME TAX (PROFIT TAX)
The taxable base is the corporate income (profit) determined pursuant to the accounting regulations as the difference between revenues and expenditures before
the corporate income tax (profit tax) assessment, increased and reduced in accordance with the provisions of the Profit Tax Act.
The taxable base of a resident taxable person: the corporate income (prof-it)
earned in Croatia and abroad in accordance with the provisions of the Profit Tax
Act.
The taxable base of a non-resident: the corporate income (profit) earned in
Croatia assessed in accordance with the provisions of the Profit Tax Act.
The taxable base also includes a corporate income (profit) derived from liquidation,
sale, change in the legal form and division of a taxable person and shall be determined at the market value of assets unless otherwise provided in the Profit Tax Act.
i Expenditures also includes expenses incurred on the basis of premiums paid for voluntary pension insurance that the employer pays in favor of his workers, with their
consent, to domestic voluntary pension fund which is registered in accordance with
the rules governing voluntary pension insurance, up to HRK 500.00 for each month
tax period, a total of up to HRK 6,000.00 per year.
i Expenditures in a tax period shall not be considered the expenditures that are not in
connection with the activities of the taxpayer and that are not a result of his business
activities.
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THE TAXABLE BASE OF CORPORATE INCOME TAX (PROFIT TAX) = TOTAL
REVENUE – TOTAL EXPENDITURE = CORPORATE INCOME (PROFIT) OR LOSS
+
INCREASING THE TAXABLE BASE/DIMINUTION OF LOSSES FOR:
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1. The amount of depreciation in excess up to the prescribed amount
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The depreciation of long-term tangible and intangible assets1 shall be recognized as
expenditure to the amount calculated based on the acquisition costs by using the
linear method and applying following annual depreciation rates:
DESCRIPTION
Buildings and ships over 1000 GRT
Basic herd and personal cars
Intangible assets, equipment, vehicles (except personal
cars) and machinery
Computers, computer hardware and software, mobile
telephones and computer network accessories
Other non-mentioned assets
Depreciation
lifetime
20 years
5 years
4 years
Annual depreciation rate
5%
20%
25%
2 years
50%
10 years
10%
 The annual depreciation rates may be doubled.
 Depreciation is accrued individually. Land, forests and similar renewable natural resources, financial assets cultural monuments and works of art shall not
be subject to depreciation.
 Where the calculated depreciation amount of a taxable person is lower than
the amount allowable for tax purposes, the calculated depreciation amount
shall also be considered as recognized expenditure.
 The depreciation costs of long-term assets shall be recognized as tax expenditure from the first day of the month following the month in which the longterm assets were put to use.
 The depreciation costs of sold, donated, or in some other way, alienated or
destroyed long-term assets shall be recognized as tax expenditure until the
end of the month in which these assets were used.
 Undepreciated acquisition cost of long-term asset shall be recognized as tax
expenditure in the taxable period in which these assets were sold, donated, or
in some other way alienated or destroyed. Exceptionally, if the acquisition cost
is stated at a revalued amount, the recognized tax expenditure shall include
the undepreciated acquisition cost reduced by the revalued amount, which is
included in revenues up to the time of the sale, donation or another way of
alienation, or destruction of the assets. The depreciation of written-off longterm assets shall not be recognized as tax expenditure.
 The depreciation of personal cars and other means of personal transportation
shall be recognized at the acquisition cost of up to HRK 400,000.00 per
means of transportation. Where the acquisition cost exceeds the stated
amount, the amount of depreciation for acquisition cost in excess of the stated amount shall only be recognized if the means is exclusively used for carrying out a registered renting or transportation activity.
1
Long-term material and non-material assets are considered to be the goods and rights whose individual acquisition cost is greater than HRK 3,500.00 and the service life is longer than one year.
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 Long-term assets shall be maintained in the records even after their complete
write-off (according to the historic cost and accumulated depreciation) up to
the time of their sale or donation or another way of alienation or destruction.
 An expense of depreciation of vessels, aircraft, apartments and houses for
rent that are recorded in long-term assets are recognized as an expense of
depreciation of such property under the conditions:
a) taxpayer is registered for the renting and transport with vessels and aircraft,
or for renting apartments and houses for rent, and
b) revenues from the use of vessels, aircraft in the tax period have been
achieved at least 7% of their purchase value, and
c) revenues from renting apartments and houses for rent in the tax period
have been achieved at least 5% of their purchase value.
If the taxpayer does not meet the above requirements, the same has an obligation to increase the tax base in that tax period for the depreciation expense
of such property and for all associated costs incurred in connection with such
property. The cost of renting such property, and the costs arising from use of
the property, are recognized to the taxpayers who use those assets under
operating leases, provided that the taxpayer’s revenue in the tax period on the
basis of use of such property are at least equal to the cost of rent. If the taxpayer does not meet the specified requirement in the tax period, the tax base
shall be increased for the cost of renting such property and related costs arising from use of such property. The cost of use of such vessels, airplanes,
apartments and holiday houses on the basis of the business lease, and the
costs arising from use of the property, are recognized to the taxpayers who
use those assets under operating leases, provided that the taxpayer’s revenue
in the tax period on the basis of use of such property are at least equal to the
cost of rent. If the taxpayer does not meet the specified requirement in the tax
period, the tax base shall be increased for the cost of renting such property
and related costs arising from use of such property.
 Amortization expenses for assets that are not used to perform the activity are
not recognized.
2. 70% of entertainment expenses (food and drink, gifts with or without the
printed firm logo or product brand and expenses for vacation, sport, recreation and leisure-time, renting cars, vessels, airplanes and holiday cottages), to
the amount of costs resulted from a business relation with a business partner.
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Entertainment is not considered to be products and goods from the assortment of
the taxpayer that are adapted for that purpose and are marked with “not for sale”,
and other advertising objects with the name of the company, products as well as
other forms of advertising (glasses, ashtrays, table cloths, coasters, pencils, planners,
lighters, key chains and similar) given for use in the buyer’s workspace, and if they
are given to consumers, they are deemed to be a representation if their single value,
VAT excluded, is less than HRK 160.00.
3. 30% of the costs, except insurance and interest costs, incurred in connection
with personal or rented motor vehicles or other means of personal transpor-
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tation (personal car, vessel, helicopter, airplane, etc.) used by managerial, supervisory and other employees, provided that the use of means of personal
transportation is not defined as salary.
4. Asset losses in excess of the amount determined by a decision of the Croatian
Chamber of Economy and the Croatian Chamber of Crafts and Trades in terms of
the regulations on value added tax, which amount is not subject to income tax,
5. Expenditures established in the control process with belonging VAT, income
tax, surtax on income tax and compulsory contributions which have arisen in
relation to the payment of hidden profits, and exclusion of shareholders,
members of the company and physical persons engaged in an independent
activity to which income tax is paid, and with related persons.
6. Costs of enforced collection of tax and other levies,
7. Fines imposed by competent bodies,
8. Penalty interest accumulated between associated persons,
9. Privileges and other types of economic benefits granted to natural persons
and legal entities for the purpose of causing or preventing a certain event, i.e.
for the purpose that a certain activity is, for example, carried out more successfully or more quickly, or that it is not carried out.
10. Gifts in kind or cash made in Croatia for cultural, scientific, educational,
health, humanitarian, sports, religious, environmental or other socially beneficial purposes to associations and other persons engaged in the above-mentioned activities pursuant to special regulations, if they exceed 2% of the
revenues generated in the previous year, Exceptionally, the amount may exceed 2% of the revenues generated in the previous year, provided that it is
granted pursuant to the decisions of competent ministries on the financing of
special programs and activities.
The gifts also include the covering of natural persons’ health care costs (surgeries,
medical treatment, purchase of medication and orthopedic aids, etc.), which are
not covered by the basic, supplementary, additional or private health insurance.
Also included is the reimbursement of costs borne by natural persons provided that
the payment is made to the account of the gift recipient, i.e. the health care institution. Where the gift is a medicine, an orthopedic or other medical aid, the costs shall
be paid based on an authentic document.
i Gifts may also include donations of taxpayers manufacturers and food traders that,
in order to prevent the destruction of large quantities of food and environmental
protection, donate food to social, humanitarian and other help purposes, as well as
people affected by natural disasters, provided that these gifts are made in accordance with special regulations. The taxpayer is obligated to ensure appropriate documentation in the manner determined by the applicable law on taxes and separate
regulations in order to determine without doubt whether the donation was made
for those purposes. It is considered that the conditions in terms of implementation
of special programs and activities are met if the donation of food is carried out in
accordance with relevant regulations of the Ministry of Agriculture.
i
11. Interests on loans to shareholders and members of the company that are
not a tax-deductible expense.
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Interest on loans received from shareholders or members of the company which
holds at least 25% of the shares, or equity in the capital or voting rights in the
taxpayer, if in the tax period, these loans exceed four times the amount of the shareholder stake or member of the company in the capital or voting rights, established
in relation to the amount and duration of loans during the tax period, except for
interests on loans from financial organizations. Shareholders’ or members of the
company’s loans are also considered to be loans to third persons that are guaranteed by the shareholder or member of the company, and loans from related parties.
12. Interest in transactions between associated persons,
i
For the determined of the income from interest on loans granted by associated
persons, the minimum calculated interest rate shall be the rate that would apply to
non-associated persons at the time of granting a loan. The interest rate is determined as the arithmetic mean of the average interest rates on the balances of loans
granted for a period longer than one year to non-financial enterprises, published by
the Croatian National Bank in the current calendar year.
13. The expenditures for value adjustment of shares and stakes (unrealized
losses), if these were included in the taxable base.
14. The amount of increasing of the taxable base in respect of change in the
method of tax base assessment (an income taxable person who becomes a
corporate income taxable person),
15. Value adjustment and write-off of the claims,
Value adjustments of the basis of revaluation of the value of claims from customers
for delivered goods and services rendered are recognized as an expense if, from the
maturity of the debt to the end of the tax period, a period of 60 days elapsed, and
they were not charged until the fifteenth day prior to the date of submission of the
tax return. Value adjustment of claims is recognized if the claim is recorded in business books as income and if they are claimed, or an enforcement procedure is being
performed on them, if they are registered in the bankruptcy proceedings of the
debtor, or if a settlement with the debtor who is not a natural person or a related
person in the process of rehabilitation or bankruptcy was reached. Exceptionally, a
write-off of obsolete claims are recognized from unrelated person that do not exceed
in each tax period HRK 5,000.00 per specific debtor who is not a natural person.
i The tax deductible expenses of a credit institution include the amount of the writeoff claim of unrelated natural persons, in accordance with the criteria and procedures of credit institutions, on the basis of approved housing loans and interest due as
reported in the revenue up to the time of the write-off if it was determined that the
write-off was conducted in order to facilitate making loan repayments to users
whose monthly installment endangers their basic life needs, and in order to prevent
the enforcement by credit institutions of the only residential property where the
borrower has a place of residence and in which they are a permanent resident. The
credit institution may apply these provisions on the recognition of write-offs for
other economic, social or economic and justifiable reasons, in accordance with the
criteria and procedures of the credit institution, provided that they apply them in the
same way to all users of housing loans. Exceptionally, the tax deductible expenses
include the amount of the write-off from unrelated persons, in accordance with the
i
15
criteria and procedures of the credit institution on the basis of approved business
loans and accrued interest recognized in the income until the time of write-off, if it
is established that the obligation on loans significantly threaten the development of
investment projects or substantially threaten the continuation of entrepreneurial
activities, and lead to the cessation of activities.
i If during the tax period an advance payment of dividend or corporate income (profit) sharing is paid to natural person and if at the end of the same tax period corporate income (profit) earned is not sufficient to cover such advance payment then the
differences that remained unpaid shall be considered as a revenue and taxed pursuant to the Personal Income Tax Act.
16. Value adjustment in respect of inventory.
17. Value adjustment in respect of financial assets.
18. The cost of reserves
 Reserves to cover the risks and costs pursuant to law or other regulations
and reserves stipulated by agreements (reserves for severance payments,
reserves for the costs of renewing natural resources, reserves for costs during guarantee periods and reserves for the costs of instituted lawsuits)
shall be recognized as expenditures,
 The cost of reserves for unused vacations is recognized as an expense, in
accordance with accounting regulations. Such reserves are compulsory
abolished in the next tax period,
 Reserves with banks for the risk of potential loss shall be recognized as
expenditures to the calculated amount that may not exceed the amount
prescribed by the Croatian National Bank,
 Reserves with insurance companies that are obligatorily made pursuant to
the law governing the insurance, shall be recognized as expenditures of an
insurance company to the calculated amount that may not exceed the
amount or maximum prescribed by the law governing the insurance.
i
The abolishment or use of the reserves shall be recognized by deducting the revenues and recognizing the expenditures, so that the revenues and expenditures,
which previously increased or reduced the taxable base, shall not be re-included in
the taxable base, unless otherwise stipulated in the Profit Tax Act.
19. Any other expenditure not directly related to corporate income (profit) earning, as well as other increases in the taxable base, which were not included
therein.
20. The increase in profit for other revenues and other increases in profit.
i
The taxable base shall not be increased by the expenditures, except for the expenditures referred to in Items 5 and 9, when income tax is calculated and paid pursuant
to the Income Tax Act.
16
—
DIMINUTION THE TAXABLE BASE/AUGMENTATION OF LOSS FOR:
1. Revenues from dividend and corporate income (profit) sharing,
i
Such revenues are revenues:
a) of which the payer is a payer liable to pay income tax, or equivalent types of taxes,
b) of which the payer is established as a legal form comparable with a capital company, a company, or a company or other person whose legal form and method
of calculation and payment of tax is comparable to taxpayers under the Income
Tax Act,
c) that are not a tax-deductible expense or deduction to the payer.
When income from dividends or shares in profit are realized from EU Member States, it is considered that the conditions under a) and b) are met if the payer:
a) taxpayer of one form of tax to which the common system of taxation is applied
(applies to related companies from different EU Member States)
b) company that takes one of the forms to which the common system of taxation is
applied (applies to related companies from different EU Member States)
c) resident of a EU Member State in accordance with the law of the country (not
applicable to residents outside the EU according to international agreements on
avoidance of double taxation, concluded with non-Member States).
2. Revenues from value adjustment of shares and stakes (unrealized gains), if
these were included in the taxable base,
3. Revenues from collected written-off claims that were included in the taxable
base in the previous tax periods, but not excluded from the taxable base as
recognized expenditures,
4. the expenditures from previous periods which were included in the taxable
base,
5. the amount of depreciation not recognized in the previous tax periods,
6. the amount of decreasing of the taxable base in respect of change in the
method of tax base assessment (an income taxable person who becomes a
corporate income taxable person),
7. state support for education and further training,
8. state support for research and development programs.
9. the amount of the difference between the cash payments from EU funds and
the state budget for implementation of permanent cessation of fishing activities with the destruction of the vessel and the undepreciated cost of obtaining the destroyed vessel,
10. reinvested corporate income (profit) other than that earned in banking or
financial non-banking sector (credit institutions, financial institutions, credit
unions, investment companies, insurance and reinsurance companies, leasing companies, payment transaction institutions and institutions for electronic money).
i
Reinvested profit gain is gain realized in the tax period in which in the court registry
the share capital increases for the purposes of investment and development, in
accordance with the provisions of the Companies Act, which is equal to the amount
17
of completed investments in fixed assets in order to preserve existing jobs and for
which the expenditures in their entirety are identified as tax deductible. Reduction of
the tax basis can be used in the process of filing income tax returns for the previous
year. A taxpayer who reduces the tax base has to, with a tax return, no later than 6
months after the deadline for submission of applications, provide proof to the competent Tax Administration that the share capital was increased with the gain they had
made in the previous year, at a minimum, in the amount of investments in fixed property in the previous year with the aim of preserving existing jobs and the taxpayer who
reinvested profits in this manner shall keep the number of employees at the beginning
of the tax period for the stated tax base reduction based on reinvested profit, and at
least 2 years after the expiration of the period (2 years after the year in which the income tax base was reduced) and taxpayers who use tax exemption under the Act on Investment Promotion and Improvement of the Investment Environment and the Investment Promotion Act cannot, on the basis of the same investments in a fixed asset, use
a tax relief for reinvested profit.
—
TAX LOSS CARRIED FORWARD
A tax loss shall be carried forward and offset by reducing the taxable bases in
the following 5 years, unless otherwise provided in the Profit Tax Act. If the right
to offset losses occurred in the process of mergers, acquisition or divisions is
transferred to legal successors during a tax period, the right to carry forward
the loss begins in the period in which the legal successor acquired the right to
carry forward the loss.
—
EXEMPTIONS, RELIEF AND INCENTIVES
• Tax credits and exemptions for taxpayers doing business in assisted areas and
the City of Vukovar (de minimis).
• Reliefs and exemptions for taxpayers in free zones.
• Incentives under the Investment Promotion Act.
Taxable base in the case of business relations between associated resident
and non-resident persons:
Where associated persons, within their business relations, agree on prices or other
conditions different from the prices or other conditions which would be agreed
between non-associated persons, the whole amount of the corporate income
(profit) that would be realized if the business relations were between non-associated persons, shall be included in the associated persons’ tax bases.
18
Persons are associated if one of them participates, directly or indirectly, in the management, control or capital of the other person, or if the same persons participate,
directly or indirectly, in the company’s management, control or capital.
i Business relations between associated persons shall only be recognized if a taxpayer
has and provides, at the request of the Tax Administration, the data and information
about the associated persons and his/her business relations with these persons, methods used for the determination of comparable market prices and his/her reasons for
the selection of particular methods.
i
For the establishment and assessment whether the business transactions between
the associated persons are agreed at market prices, one of the following methods
can be used:
a) The method of comparable non-controlled price, based on the comparison between the prices for sold goods, merchandise or services in controlled transactions and those in non-controlled transactions under comparable circumstances.
b) The sales price method based on the determination of the price at which
the goods purchased from associated persons are sold to non-associated persons. The determined price is reduced by an appropriate amount of gross
margin that can be realized under the existing market conditions. The remainder is the price at which the goods could have been purchased from non-associated persons.
c) The method of adding gross corporate income (profit) to the costs according to which the costs of goods, semi-finished goods or services, borne by
the person who sold the goods, semi-finished goods or services to another associated person, are determined first. The determined costs are increased by a
gross corporate income (profit) that can be derived under the existing market
conditions. The resulting amount is the price at which the goods, semi-finished
goods or services could have been purchased from non-associated persons.
d) The corporate income (profit) sharing method based on the elimination of
the effect of special circumstances on the corporate income (profit) resulting
from transactions between associated persons. Such elimination is done by
determining the shares of corporate income (profit) that non-associated persons would expect from participation in one or several transactions. According to the method, the corporate income (profit) sharing between associated
persons in one or several transactions in which they participate is determined
first. Then, the corporate income (profit) sharing is determined, which would
result from the participation of non-associated persons in these transactions
under the existing market conditions, and the shares of corporate income
(profit) so determined are divided among the associated persons.
e) The net corporate income (profit) method that includes the examination
of the net corporate income (profit) earned compared to a certain base, e.g.
total costs, receipts from a sale, property or personal capital, realized from a
person’s transactions with one or several associated persons. The net profit so
generated is compared to the net corporate income (profit) of similar persons
under similar circumstances.
19
Taxable base for permanent establishments of non-residents is the
corporate income (profit) determined in accordance with the Profit
Tax Act, which can be credited to a permanent establishment in the
Republic of Croatia. For the determination of the taxable base, the corporate income (profit) of a permanent establishment must be equal to the corporate income (profit) which the permanent establishment would earn if it
were an independent company engaged in the same or a similar activity under the same or similar circumstances, and if it would independently conduct
transactions with a company of which it is a permanent establishment.
These provisions also apply to associated persons who are residents if one of the
associated parties:
1. has a privileged tax status and pay corporate income tax at rates that are
lower than the prescribed rate or is exempted from payment of corporate income tax, or
2. has the right in the tax period to carry forward the tax losses from previous tax
periods.
Income tax at merger, division of assets, exchange of shares and transfer
from various EU Member States:
i
A company resident of an EU Member State is considered to be a company that:
1. is a resident of an EU Member State in accordance with the law of that State,
2. has a form for which a common system of taxation is applied applicable to mergers,
division, partial divisions, transfers of assets and exchanges of shares concerning
companies of different EU Member States, and transfer of the seat of the European
Society (SE) or European Cooperative Society (SCE) between Member States,
3. is a taxpayer of one of the taxes for which a common system of taxation is applied
applicable to mergers, division, partial divisions, transfers of assets and exchanges of
shares concerning companies of different EU Member States, and transfer of the
seat of SE or SCE between Member States according to the list in Appendix which is
an integral part of the Ordinance on Income Tax issued by the Minister of Finance.
Items 1- 3 do not apply to companies that are tax-exempt or have a choice.
The transferred company, the acquiring company and a member of the
company are required to report to the tax authorities’ mergers, divisions,
and partial divisions, transfers of assets and exchanges of shares.
At merger, division, partial division or exchange of shares, allocation of securities of the
transferee company to members of the transferred company in exchange for securities
representing the capital of the transferred companies is not subject to taxation.
Merger and Division:
Profit is not taxed, and a loss is not recognized if in a second company, on the day
the merger, division or partial division, a gain or loss is realized that is related to the
transferred assets and liabilities.
20
At merger, division or partial division, the taxpayer during the tax period preceding
the merger, division or partial division, presents the hidden reserves, which are not
taxed at the time of the merger, division or partial division, but the income in the
same amount is faced with increased depreciation.
i The transferee company may take provisions that were created by the transferred
society, and the rights and obligations in connection with the provisions under the
same conditions that would be worth in the transferred company if the transmission
did not occur. The acquiring company may take tax losses under the same conditions
applying to the transferred society, if the transfer did not occur.
i
The acquiring company is not taxed on profits derived by at the abolition of the
equity of the company transferred if prior to the merger, division or partial division,
it had shares in the capital of the transferred company.
Profit is not taxed and losses are not recognized if the member of society obtains
during a merger, division or partial division with replacing securities of the transferred company for securities of the transferee company.
i
The provision does not apply if the member of a company is a resident of the RH and
receives compensation in cash, or if they are not a resident of the Republic of Croatia,
but hold securities in the transferred company and the transferee company through
a business unit which it has in Croatia.
If the acquiring company has more than 10% of the share capital in the transferred
company capital, gains derived by it, due to the elimination of shares in the capital,
are not taxed. At merger, division, partial division or exchange of shares, allocation
of securities of the transferee company to members of the transferred company in
exchange for securities representing the capital of the transferred companies is not
subject to taxation. At merger, division, partial division or exchange of shares, allocation of securities of the transferee company to members of the transferred
company in exchange for securities representing the capital of the transferred companies is not subject to taxation.
i
The transferred company and the acquiring company realize the enumerated rights if
they are residents of the Republic of Croatia or residents of other EU Member States,
under the following conditions:
1. The transferred company and the acquiring company are residents in the Republic
of Croatia, regardless of whether the economic entity of the transferred company
are in Croatia or in another EU Member State,
2. The transferred society is a resident of another EU Member State, and the acquiring company is a resident of the Republic of Croatia, provided that after the merger, division or partial division the transferred assets and liabilities, provisions, reserves and losses do not belong to the business unit of the acquiring company
outside the Republic of Croatia,
3. The acquiring company is resident in another EU Member State and the transferred
company is a resident of Croatia or another EU Member State, provided that after
the merger, division or partial division the transferred assets and liabilities, provisions,
reserves and losses belong to the establishment of the acquiring company in Croatia.
21
Transfer of property:
If at the transfer of assets in the transferred society a gain or loss is realized that is
attributable to the transferred Business Unit, that profit or loss is not taxed.
The transferee company may take provisions that were created by the transferred
society, and the rights and obligations in connection with the provisions under the
same conditions that were valid in the transferred company if the same are attributed
to the transferred economic unity.
i The acquiring company may take tax losses under the same conditions that would apply
to the transferred society if the same are attributed to the transferred economic unity.
i
When the transferred domestic company transfers part or all of an economic entity to the acquiring company based in an EU Member State in exchange for shares
of the acquiring difference that occurs is not taxed, provided that the acquiring
company continue to do business in the country through its business unit. When
the transferred company based in an EU Member State carries out the activity in
the country through its business unit, transfers part or all of an economic entity to
the transferee company in another Member State in exchange for the transferred
shares acquired, the difference that occurs between the market value of the transferred economic entity and its tax values is not taxed, provided that the acquiring
company continues to do business in the country through its business unit.
If the acquiring company does not continue to carry out its activities under the above
conditions, or within 5 years from the date of transfer dispose of the transferred business unit, a positive difference that occurs between the fair value of the transferred
economic entity and its tax value is taxed.
i The Transferred company and the acquiring company realize the mentioned rights if
they are residents of the Republic of Croatia or residents of other EU Member States,
under the following conditions:
1. if the transferred company and the acquiring company are resident in the Republic
of Croatia for the transfer of an economic entity in Croatia, or in another EU Member State,
2. if the transferred firm is resident in another EU Member State, and the acquiring
company is a resident of the Republic of Croatia, for the transfer of an economic
entity which is in Croatia, and only if, after the transfer transferred assets and liabilities, provisions, reserves and losses do not belong to the business unit of the
transferee company outside the Republic of Croatia,
3. if the acquiring company is resident in another EU Member State and the transferred company is resident of Croatia or another EU Member State, provided that
after the transfer of transferred assets and liabilities, provisions, reserves and losses
belong to the establishment of the transferee company in Croatia.
i
Business unit transfer:
If the merger, division, partial division or transfer of assets include a permanent
establishment of the transferred companies in another Member State of the EU
Member State in which the company has transferred the seat will not tax the profits of that business unit. The transferred company may include loss of business
units that were not reimbursed.
22
i
During merger, division, partial division or transfer of property EU Member State in
which the business unit is based, and Member State in which the acquiring company
is based, the provisions of Article 20a – 20o of the Income tax Act are applied on such
a transfer (mainly relating to the taxation of income when the business unit continued activities in the EU Member State in which it had been doing business). The same
applies when a permanent business unit is in the same EU Member State in which the
acquiring company is a resident. Exceptionally, when a Member State company which
is transferred uses the principle of taxation of the world profit, then it has the right
to tax any profits or capital gains of the permanent business unit which are a result
of the merger, division, partial division or transfer of assets, provided that tax that
would be charged on those profits or capital gains in the EU Member State in which
the permanent business unit is located is charged.
Transferring the headquarters of a European company or European Cooperative Society:
Profit from the assets and liabilities of the European Society (SE) and the European
Cooperative Society (SCE) is not taxed in the Member State from which the headquarters is transferred if the headquarters of the SE or SCE is transferred from one
to another EU Member State, provided that these companies remain associated
with the permanent business unit of that SE or SCE society in the Member State
from which the headquarters is transferred.
Replacement of stocks and shares:
If a member of the company taken over during exchange of shares and realized
capital gains, these gains are not taxed. When by replacement of securities of the
company taken over a loss is realized, that loss is not recognized for tax purposes.
If a member of the company is paid in cash, then they are an income taxpayer in
the part that relates to the payment in cash, with the realized gain or loss proportionally attributed to the cash payment and the fair value of securities of the acquiring company.
i
These provisions apply when the acquiring company and the company taken over are
a resident of the Republic of Croatia and/or residents of other EU Member States and
if a member of the company is a resident of Croatia, or if they are not a resident of
the Republic of Croatia, and the holder of the securities of the company taken over
and the acquiring company through a business unit in Croatia.
II. TAXABLE BASE FOR WITHHOLDING TAX
The withholding tax base shall be the gross amount of a consideration paid by a
resident payer to a non-resident recipient.
THE TAX RATES
I. TAX RATE ON CORPORATE INCOME TAX (PROFIT TAX)
20% on the determined tax base.
II. TAX RATE ON WITHHOLDING TAX
• 12% on dividends and shares in corporate income (profit),
23
• 15% on royalties and other intellectual property rights,
• 15% on market research services, tax and business counseling and auditor services paid to non-residents,
• 15% on interests,
• 20% on all kinds of services that are not afore-listed and that are paid to entities
that have their headquarters or place of effective management and supervision
of operations in countries that are considered tax asylum or financial centers,
other than the EU Member States and countries with which the republic of Croatia concluded and administers agreements on the avoidance of double taxation,
and such state was published in List of Countries published on the website of the
Ministry of Finance and Tax Administration of the Republic of Croatia.
Withholding is paid at a lower rate if with the state in which the foreign recipient of
remunerations, interest or dividends has its headquarters there is in force a tax treaty,
along with the agreed on lower rates of taxation. For the application of the provisions
of the contract, the foreign tax authority should certify the form „Request“. A certified application shall be submitted before any payment is made. Exceptionally, in the
case of frequent payments, a certified application shall be submitted during the first
payment, and after that, it is necessary to be submitted every twelve months.
i From the day of the accession of the Republic of Croatia to the European Union, withholding tax on dividends and shares in corporate income (profit) shall not be paid
when dividends and corporate income (profit) shares are distributed to a company
taking one of the forms that are subject to the common taxation system applicable
to parent companies and their subsidiaries from different EU Member States, provided that the recipient of dividend or share of corporate income (profit) has a minimum holding of 10% in the capital of the company distributing dividend or share of
corporate income (profit) for an uninterrupted period of 24 months.
i
Tax rates on royalties, interests, dividends and shares in profit according to the
agreements on the avoidance of double taxation that were concluded between the
Republic of Croatia and other countries.
No.
State
Date
Royalties
(rate)
Interest
(rate)
of effect of
the Agreement
Tax rate
Tax rate
1
Albania
01.01.1998.
10%
10%
2
Armenia
01.01.2011.
5%
10%
3
Austria
01.01.2002.
0%
5%
4
Azerbaijan
01.01.2014.
10%
10%
5
Belgium
01.01.2005.
0%
10%
6
Belarus
01.01.2005.
10%
10%
24
Dividends and corporate income (profit)
shares
Percentage of share in the
Tax rate
overall capital of the company
irrespective of share
less than 25%
25% and more
less than 10%
10% and more
less than 25%
25% and more
less than 10%
10% and more
less than 25%
25% and more
10%
10%
0%
15%
0%
10%
5%
15%
5%
15%
5%
No.
3
4
5
6
7
Royalties
(rate)
Interest
(rate)
of effect of
the Agreement
Tax rate
Tax rate
01.01.2006.
10%
10%
8
Bosnia and
Herzegovina
Bulgaria
01.01.1999.
0%
5%
9
Montenegro
01.01.2005.
10%
10%
10
Czech Republic 01.01.2000.
11
Chile
01.01.2005.
10%
5%2
10%4
0%
5%3
15%4
12
Denmark
01.01.2010.
10%
5%
13
Estonia
01.01.2005.
10%
10%
14
Finland
08.10.1991.
10%
0%
15
France
01.10.2006.
0%
0%
16
Greece
01.01.1999.
10%
10%
17
18
Georgia
Indonesia
01.01.2014.
01.01.2013.
5%
10%
5%
10%
19
Iran
01.01.2009.
5%
5%
20
Ireland
01.01.2004.
10%
0%
21
India
01.01.2016.
10%
10%
22
Iceland
01.01.2012.
10%
10%
23
Italy
01.01.2010.
5%
10%
24
Israel
01.01.2008.
5%
5%5
10%6
7
2
State
Date
shares
Tax rate
less than 25%
25% and more
less than 25%
25% and more
less than 20%
20% and more
less than 25%
25% and more
less than 10%
10% and more
less than 25%
25% and more
less than 10%
10% and more
less than 25%
25% and more
less than 25%
25% and more
less than 10%
10% and more
less than 10%
10% and more
less than 10%
10% and more
less than 10%
10%- 25%
25% and more
10%
5%
5%
10%
5%
5%
15%
5%
10%
5%
15%
5%
15%
5%
15%
0%
10%
5%
5%
10%
10%
5%
10%
5%
15%
5%
10%
5%
15%
15%
10%7
5%
Gross amount of the royalties for the use of, or the right to use, any industrial, commercial or
scientific equipment.
Gross amount of the interest derived from loans granted by banks and insurance companies
Gross amount of the interest in all other cases.
In the case of interest arising in a contracting state and paid on any loan of whatever kind
granted by a bank of the other contracting state.
Gross amount of the interest in all other cases.
If the beneficial owner is a company that holds directly, at least 10% of the capital of the company paying the dividends where that latter company is a resident of Israel and the dividends
are paid out of profits that are subject to tax in Israel at a rate that is lower than the normal
rate of Israeli company tax.
25
No.
State
Date
Royalties
(rate)
Interest
(rate)
of effect of
the Agreement
Tax rate
Tax rate
25
Jordan
01.01.2007.
10%
10%
26
South African
Republic
01.01.1998.
5%
0%
27
Canada
01.01.2000.
10%
10%
28
29
10%
10%
0%
10%
0%
5%
31
Qatar
01.01.2010.
China
01.01.2002.
The Republic of
01.01.2007.
Korea
Kuwait
1.1.2004.
10%
0%
32
Latvia
01.01.2002.
10%
10%
33
Lithuania
01.01.2002.
10%
10%
34
Hungary
01.01.1999.
0%
0%
35
Macedonia
01.01.1997.
10%
10%
36
Malaysia
01.01.2005.
10%
10%
37
Malta
01.01.2000.
0%
0%
38
Morocco
01.01.2013.
10%
10%
39
Mauritius
01.01.2004.
0%
0%
40
Moldova
01.01.2007.
5%
5%
41
Netherlands
01.01.2002.
0%
0%
42
Germany
01.01.2007.
0%
0%
43
44
Norway
Oman
08.10.1991.
01.01.2012.
10%
10%
0%
5%
45
Poland
01.01.1997.
10%
10%
46
Portugal
01.01.2016.
10%
10%
47
Romania
01.01.1997.
Russian Federa01.01.1998.
tion
10%
10%
10%
10%
49
San Marino
01.01.2006.
5%
10%
50
Syria
1.1.2010.
12%
10%
30
48
26
shares
Tax rate
less than 25%
25% and more
less than 25%
25% and more
less than 25%
25% and more
less than 25%
25% and more
less than 25%
25% and more
less than 10%
10% and more
less than 25%
25% and more
less than 25%
25% and more
less than 10%
10% and more
less than 25%
25% and more
less than 25%
25% and more
less than 10%
10% and more
less than 10%
10% and more
in all cases
less than 25%
25% and more
less than 25%
25% and more
less than 25%
25% and more
less than 25%
25% and more
less than 10%
10% and more
10%
5%
10%
5%
15%
5%
0%
5%
10%
5%
0%
10%
5%
15%
5%
10%
5%
15%
5%
10%
5%
5%
10%
8%
0%
10%
5%
15%
0%
15%
5%
15%
0%
15%
5%
10%
5%
5%
10%
5%
10%
5%
10%
5%
No.
State
Date
Royalties
(rate)
Interest
(rate)
of effect of
the Agreement
Tax rate
Tax rate
51
Slovakia
01.01.1997.
10%
10%
52
Slovenia
01.01.2006.
5%
5%
53
Serbia
01.01.2005.
10%
10%
54
Spain
01.01.2007.
0%
0%
55
Sweden
08.10.1991.
0%
0%
56
Switzerland
01.01.2000.
0%
5%
57
58
Turkmenistan
Turkey
01.01.2016.
01.01.2001.
10%
10%
10%
10%
59
Ukraine
01.01.2000.
10%
10%
01.01.2016.
5%
5%
60
United Kingdom of Great
Britain and
Northern Ireland
shares
Tax rate
less than 25%
25% and more
less than 25%
25% and more
less than 25%
25% and more
less than 25%
25% and more
less than 25%
25% and more
10%
less than 25%
25% and more
25% and over8
If the dividends are paid
from tax exempt income
(income) on the basis of
real estate
in all other cases
10%
5%
5%
10%
5%
15%
0%
15%
5%
15%
5%
10%
10%
10%
5%
5%
15%
10%
NOTE: Tax rates in the table apply to legal and natural persons.
EXEMPTIONS/ RELIEF/ INCENTIVES
TAX CREDITS FOR TAXPAYERS DOING BUSINESS IN ASSISTED AREAS AND
THE CITY OF VUKOVAR (de minimis):
The tax relief is granted by the ministry responsible for regional development and
the ministry responsible for agriculture if the beneficiary works in agriculture or
fisheries and aquaculture activities. Taxpayers who are tax credits beneficiaries record the amount of the relief as a reduction of tax liability in the annual return of
income tax. The income taxpayer determines the amount of tax relief as the difference between the tax liability determined by applying the tax rate of 20% and the
tax liability determined under the reduced tax rate, provided that such a fixed
amount does not exceed the upper limit of de minimis.
8
Unless the dividends are paid out of profits (income) that directly or indirectly is derived from
real estate by the entity for the investment that is performing the distribution of most of the
profit (income) on an annual basis and whose profits (income) of these properties are exempt
from taxes.
27
Area of
economic
activity
Minimum number of
employees that are
employed for an
indefinite period
Economic activity
The upper limit of
income
support of small value/
tax
de minimis (calculated
on the basis of “one
entrepreneur”, in any
period during 3 fiscal
years)
I. group
of degree
of development
(see Appendix
6.1) and
the City
Of Vukovar
II. group
of degree
of development
(see Appendix
6.1)
5 (more than
50% of the employees must
have a place of
residence and live
in the assisted
areas of the local
government, or
in the area of the
City of Vukovar)
5 (more than
50% of the employees must
have a place of
residence and live
in the assisted
areas of local
government
all sectors except the sector of
fisheries, aquaculture, agriculture
and road the sector of transport
for rent or fee
the sector of road transport for
rent or fee
the fisheries and aquaculture
sector
the agricultural sector
EUR 200,000.00
all sectors except fisheries, aquaculture, the sector of agriculture
and transport for rent or fee
the sector of road transport for
rent or fee
the fisheries and aquaculture
sector
EUR 200,000.00
0%
EUR 100,000.00
EUR 30,000.00
EUR 15,000.00
10%
EUR 100,000.00
EUR 30,000.00
EUR 15,000.00
The term “single entrepreneur” includes all companies that have at least one of the
following relationships:
a) an enterprise has a majority of the voting rights of shareholders or members in
another company,
b) an enterprise has the right to appoint or remove a majority of the members of the
administrative, management or supervisory body of another company,
c) a company is entitled to exercise dominant influence over another company under
a contract concluded with that undertaking or to the provisions of the statute or
social contract that the company,
d) a company that is a shareholder or member of another enterprise controls alone,
pursuant to an agreement with other shareholders or members of that enterprise,
a majority of the voting rights of shareholders or members of the voting rights in
this company.
i It is believed that the taxpayer employs an employee for an indefinite period if the
employee spent at least 9 months in the tax period employed by the taxpayer, had
permanent residence, and resided in assisted areas of local governments, or in the
City of Vukovar.
i If the support user in the City of Vukovar or assisted areas of the I and II group performs more activities for which different rules for de minimis are applied, the same is
obliged to provide in this area, irrespective of the place of business or residence, a
special tax accounting and monitoring of each activity for which different rules for de
minimis are applied.
i If the user of small values performs more activities for applying different rules on de
minimis shall in accordance with these rules ensure that activities in the sectors that are
i
28
excluded from the scope of Commission Regulation (EU) no. 1407/2013 do not benefit
from the de minimis granted under this Regulation, as well as that the activities in the
sectors that are excluded from the scope of Commission Regulation (EU) no. 717/2014
do not benefit from the de minimis granted under the same Regulation.
TAX FREE ZONES:
1. Users of the tax free zones, who prior to the enforcement of the Tax Free Zones
Act, invested into construction and who participated in the construction of objects with an investment exceeding HRK 1,000,000.00, and who in the process
did not use the upper limit of the approved subsidy, regulated by the regional aid
map, shall reserve the right to be exempt from corporate income (profit) tax payment until the year in which the upper limit of the approved subsidy will be used,
and not later than 31 December 2016.
When calculating the maximum aid intensity – the upper limit for aid intensity for
investment, expressed as gross grant equivalent, into account are taken, on the one
hand, the cumulative amounts of used aids to investment until the entry into force of
the Free Zones Act, including support from other sources related to the eligible investment costs, on the other hand, the cumulative amount of realized investments
until the entry into force of the Free Zones Act for each user zone. The maximum aid
intensity for an investment is calculated as the gross grant equivalent, in accordance
with the provisions of the Investment Promotion Act, and may not exceed the ceiling
for aid intensity established regional aid map.
i The amount of exemption from payment of corporate income tax for specified periods cannot be bigger than the amount determined by the decision on releasing the
rules on de minimis.
i
2. Users of the tax free zones, who prior to the enforcement of the Tax Free Zones
Act, conducted their business activity in the tax free zone, shall pay corporate
income (profit) tax depending on the business unit of the level II statistics of the
Free Zone location, and in compliance with the National Classification of the
Statistic Area Units – NCSAU, in the following manner:
Taxpayer
Period
Rate of corporate income (profit) tax
User of the tax-free zones who – from 2008 to 2010 – 50% of the prescribed tax rate
is in the business unit of the
– from 2011 to 2013 – 75% of the prescribed tax rate
level II statistics – North-we– from 2014
– to the amount of the prescribed tax rate
stern Croatia (HR 01)
User of the tax-free zone
who is in the business unit of
the level II statistics – Central
and Eastern (Pannonian) Croatia (HR 02) and Adriatic Croatia (HR 03)
User of the tax-free zone, who
is in the region of the City of
Vukovar, conducted business
activity in the tax free zone
prior to the enforcement of
the Tax Free Zones Act
– from 2017
– from 2017
29
If the taxpayer does not conduct activity exclusively in the tax free zone, tax exemptions
and tax deductions for business activities in the tax free zone shall be determined for
the portion of the corporate income (profit) that was generated in the tax free zone.
i The amount of exemption from payment of corporate income tax for specified periods cannot be bigger than the amount determined by the decision on releasing the
rules on de minimis.
i
INVESTMENT INCENTIVES (tax incentives):
According to the provisions of the Investment Promotion Act, support beneficiaries
are companies and entrepreneurs artisans who are individuals and income taxpayers registered in the territory of the Republic of Croatia who use support, i.e. who
are granted regional aid for initial investment and job creation, and support for
training related to investments .
The aid refers to investment projects and strengthening the competitiveness of the:
– production and processing activities
– development-innovation activities
– business support activities
– the activities of high-value-added services.
Division of enterprises in accordance with regulation the European Commission no.
651/2014:
Category of
enterprise
Micro enterprise
Small enterprise
Medium sized
enterprise
Large enterprise
Number of employees
Annual turnover
Annual balance
a maximum of 9
a maximum of 49
a maximum of 249
maximum EUR 2 million maximum EUR 2 million
minimum 250
more than EUR 50 million more than EUR 43 million
1. Tax aid for micro enterprises:
Investment of the recipient of incentive measures
Obligatory number of new jobs
A minimum of EUR within one year of the be50,000.00 (in HRK)
ginning of the investments
opening at least 3 new work
positions associated with
the investment project
Rate of corporate income (profit) tax
Duration of benefits
50% of the
prescribed
rate
5 years from the year
of the beginning of
the investment
2. Tax aid for small, medium sized and large enterprises:
Investment of the recipient of
incentive measures
Up to EUR 1,000,000.00
(in HRK)
30
Obligatory number of
new jobs
at least 5 new jobs
linked to the investment
Rate of corporate
income (profit) tax
50% of the prescri- 10 years from the
bed rate
year of the beginning
of the investment
Investment of the recipient of
incentive measures
From EUR 1,000,000.00
up to EUR 3,000,000.00
(in HRK)
More than EUR
3,000,000.00 (in HRK)
Obligatory number of
new jobs
at least 10 new jobs
at least 15 new jobs
Rate of corporate
income (profit) tax
25% of the prescri- 10 years from the
bed rate
of the investment
0%
10 years from the
of the investment
3. Incentives for the initial investment of the newly established company in tangible
and intangible assets:
Incentives for initial investment of the newly established company in tangible and
intangible assets in the minimum amount equivalent to EUR 13,000,000.00,
with an opened minimum of 10 new jobs for a university degree related to the
investment project, approved on the basis of an agreement on the preparation
and implementation of the project created by the customer and the Minister of
Economy. They are the following incentives:
3.1 Incentives for insurance of unchangeable operating conditions – for a period of 10 years from the first investment to the incentive beneficiary co-financing is approved up to a difference of tax obligations and liabilities arising from contributions (determined in accordance with the regulations that
were in force at the time of filing the application for approval of the status
of the incentive beneficiary) and tax liabilities and liabilities arising from
contributions in accordance with the regulations in force at the time of
calculation of the mentioned liabilities9. The total amount of liabilities for
which the grant can be used during the period of use is determined in the
absolute amount of the difference between the amount of tax and the
amount of calculated contributions according to the regulations in force at
the time of calculation of these obligations and the amount of taxes and
calculated contributions on the basis of an agreement, following the maximum intensity of the incentive10. If the period of 10 years from the first investment shows more favorable conditions for the incentive beneficiary,
they can ask for the termination of the incentives the for further investment
period.
3.2 Investment incentives – support is granted for a period of 10 years from the
first investment to co-finance part of the tax payable, excluding VAT, and
part of the amount of the obligation to pay contribution9, while respecting
the maximum intensity of the incentive
9
10
The beneficiary is obliged to timely pay the total amount of accrued tax liabilities and obligations of contributions and the incentive shall be awarded upon the expiry of the annual accounting period based on a submitted tax accounting card certified by the Tax Administration, as
well as forms and other documentation specified in the Act on Investment Incentives.
The maximum incentive intensity is the gross aid amount expressed as a percentage of eligible
costs before deduction of taxes or other fees for large enterprises in accordance with the regional aid map, which, in accordance with this card can be increased by 10 percentage points
in cases of encouraging investment medium-sized enterprises, and increased by 20 percentage
points in cases of encouraging small and micro entrepreneurs.
31
3.3 Half and half incentives – support is granted for the co-financing of investments:
a) with amounts to 50% of tax on income due from employment, and/or
b) with amounts to 50% of the income tax liability and payment of income
tax prepayments.
The final amount of funding of the income tax liability is determined based on annual income tax returns.
i The Ministry of Economy issues to the incentive beneficiary the approved amount of
co-financing a value coupon proving that the beneficiary settled in the value coupon
fixed amounts of income tax and corporate income tax, and advance income tax.
i
An incentive beneficiary may be granted support for up to a maximum incentive
intensity10.
3.4 The grace period to pay tax liabilities – the responsible ministry11 may approve to
the beneficiary for the project an interest-free loan for the payment of tax liabilities, excluding VAT, for a period of 3 years from the beginning of investment.
i
A loan to pay tax liabilities is paid to the tax card of the beneficiary after delivery of
calculation of tax liabilities for the purpose of their settlement. The calculation of tax
liabilities the beneficiary shall submit to the competent ministry at least 3 working
days before the maturity of tax liabilities.
After the expiry of three years, the beneficiary is required to repay the loan in 36
equal monthly installments and – properly settle current tax liabilities. An incentive
beneficiary may be granted support for up to a maximum incentive intensity10.
STATE AIDS FOR RESEARCH AND DEVELOPMENT PROJECTS
A taxable person liable to corporate income (profit) tax can be granted additional
reductions of taxable amount if they are issued a document by the ministry in
charge of science affairs confirming their status of a state aid. Taxable persons liable to corporate income (profit) tax shall be aided by the state via additional taxable amount deductions for eligible expenses of science and development research
projects in the following manner:
Type of research and development project
For fundamental research
For applied research
For developmental research
11
1 Percentage of additional taxable amount deduction
up to 150% of eligible project expenses
The Ministry of Entrepreneurship and Crafts is responsible for micro, small and medium sized
enterprises, while the Ministry of Economy is responsible for large sized enterprises.
32
Special increases in total amounts of state aid:
Type of state aid
Size of enterprise
Percentage of increase in amounts of
eligible project/study expenses
State aid for applied and deve- small enterprise
lopmental research
medium sized enterprise
large enterprise
State aid for technical feasibility small enterprise
studies of applied research
medium sized enterprise
large enterprise
State aid for technical feasibility small enterprise
studies of experimental research medium sized enterprise
large enterprise
i
up to 20%
up to 10%
up to 75%
up to 75%
up to 65%
up to 50%
up to 50%
up to 40%
The amount of corporate income (profit) tax reduction shall be approved up to the
amount of total state aid a beneficiary can be granted on all grounds:
Type of research and development project
For fundamental research
For applied research
For developmental research
Percentage of total state aid
Basic research means activities aimed at broadening scientific and technical knowledge not related to industrial and commercial objectives.
i Applied research is planned research or critical examinations with the aim of acquiring new knowledge that can be used to develop new products, production procedures or services or for significant improvements in existing products, production
procedures or services.
i Development research means experimental research activities aimed at turning applied research results into plans, drafts or models for new, adapted or improved
products, production procedures or services, for sale or use, including the manufacturing of first prototypes of no commercial use. Experimental research can also include conceptual planning and modelling of alternative products, production procedures or services and first demonstration or pilot projects, on the condition that such
projects cannot be adapted or used for industrial application or commercial purposes. Experimental research does not include routine or regular changes in products,
product lines, procedures, existing services and other current operations even if such
changes represent improvements.
i The following research expenses shall be deemed eligible:
1. salaries and wages to employees and fees to persons directly involved in the research,
2. material research expenses (raw and other material used, including packaging and
small inventory, energy consumed, spare parts used or spent during research, material and parts used for regular and investment maintenance of facilities and
equipment used directly in the research,
3. cost of services provided during the research, such as research-related intellectual
services and all other services required to carry out research,
4. costs of depreciation of immovable property, facilities and equipment proportionally to the use of these assets for research purposes in taxable persons that carry
i
33
out research on their own, while depreciation charges are determined as stipulated in Article 4 of the Corporate Profit Tax Act,
5. costs of depreciation of patents and licenses purchased and used for the research
proper; depreciation charges shall be determined as stipulated in Article 12 of the
Corporate Profit Tax Act,
6. overhead expenses shall be only expenses that are necessary for research and those
that can reasonably and consistently be applied to the activity in question, such as
premiums for process, liability and research equipment insurance, rental fees and
professional research association membership fees.
i The ministry in charge of science affairs shall, as appropriate, assess the trustworthiness of eligible expenses.
STATE AID FOR EDUCATION AND TRAINING
State aid beneficiary
Taxable amount reduction
Taxable amount reducticeilings for corporate income on ceilings for corporate
(profit) tax or personal incoincome (profit) tax or
me tax from self-employment
personal income tax
for general education and
from
employee training expenses
self-employment for special education and up to 60% of eligible ex- up to 25% of eligible
expenses
employee training expenses Enterprise (micro, penses
small, medium sized and large enterprise)
Micro, small and medium-sized enterprises that are beneficiaries of State incentives
reduce the basis for calculation of income tax or income from self-employment by
up to 80% of eligible costs so increasing the reduction of the tax base to:
1. 20 percentage points (micro and small enterprise),
2. 10 percentage points (medium sized enterprise),
i
Criteria for determining the size of the company are defined by the Law on Promotion
of Small Business
NOTE: An entrepreneur who has achieved through other means support for general
education and training of workers and/or for special education and training of workers
may reduce the basis for calculation of tax on profits or income from self-employment
by the same eligible costs, and up to the amount of the highest incentive intensity. The
total amount of the reduction of the base for calculation of tax on profits or income
from self-employment from either basis may not be higher than the maximum incentive intensity.
i
General education and training mean education and training that are not intended
directly and primarily for the current or future work position at a business using the
education and training tax relief, but that enable the acquirement of qualifications
that are mostly transferable to other businesses or areas of work, thus significantly
improving an employee’s chances of finding work. The following expenses shall be
deemed eligible general employee education and training expenses:
34
1. tuition fees in elementary and secondary schools, colleges/universities and other
education institutions where elementary, secondary and higher education is acquired, including postgraduate and doctoral studies,
2. participation fees for seminars, courses and congresses, fees for specializations and
other forms of education and training in Croatia and abroad,
3. lecturers and instructors as well as expenses for consultancy in education and training projects,
4. professional and trade literature (books, magazines) in paper or electronic form.
Official gazettes of public administration bodies, regional and local self-governments and institutions owned by these shall not be deemed professional literature.
5. write-off (amortization) of devices, accessories and equipment used in education
and training, in accordance with the extent to which these are used for education
and training.
i Special education and training – include education and training that are directly and
primarily intended for the current or future work position at a business that uses the
special education and training tax relief, and that enable the acquirement of qualifications that are not transferable to other businesses or areas of work, or are only
partly so. Among eligible costs of special education and training of workers, costs as
for general education and training in Items 2-4 are included as well.
i If general and special training and education are provided outside of worker’s permanent or temporary residence, transportation and accommodation expenses shall be
deemed eligible up to the amount of actual expenses incurred, as well as per diem
allowances, in accordance with the legislation on personal income taxation.
NOTES:
State aid beneficiaries operating in maritime transportation shall be entitled
reduce their taxable amount for the purpose of corporate income (profit) tax
or personal income tax from self-employment by up to 100% of eligible education and training expenses, regardless of whether those expenses are related to special or general education and training, if the following requirements are met:
• education must take place on board ships registered with the Croatian Register of Shipping,
• persons receiving further training cannot be active but must be reserve
members of the crew.
State aid beneficiaries shall be entitled to increase reduction of their taxable
amount of corporate income tax or personal income tax by 10 percentage
points in case of general, special education, and training of disadvantaged
employees but up to 80% of eligible costs.
i
Disadvantaged employees are:
1. workers under the age of 25 who had never been permanently employed and paid
on a regular basis
35
2. workers with disability resulting from physical, mental or psychological injuries, but
who are capable of taking part in the labor market
3. workers employed after at least three years of termination of employment, especially persons reemployed after having discontinued work due to difficulties in
managing private life and work responsibilities, and such workers shall be deemed
part of this category a period of six months after being reemployed i.e. after having
exercised their parental and family rights as stipulated in special regulations,
4. workers over the age of 45 with no high school or college diploma,
5. workers who have been unemployed for a long time, i.e. workers who have been
unemployed for a period of twelve consecutive months, where this category applies for the first six months after being reemployed.
i The term worker also includes artisans who work in a craft. Eligible general and special training and education expenses shall be recognized only for workers beneficiaries of state aid and these must be related to beneficiary’s trade.
i If general and special training and education are provided outside of worker’s permanent or temporary residence, transportation and accommodation expenses shall be
deemed eligible up to the amount of actual expenses incurred, as well as per diem
allowances, in accordance with the legislation on personal income taxation.
An entrepreneur in whose plants or workshops apprenticeship for crafts takes place
shall be entitled to reduce the corporate income (profit) or personal income taxable
amount for the amount of remunerations paid to apprentices during apprenticeship.
Entrepreneurs with one to three apprentices shall be entitled to reduce their tax base
by 5%. Entrepreneurs with more than three apprentices can reduce their tax base by
1 percentage point per apprentice, up to the maximum of 15% of the tax base or
income from independent performing of an economic activity.
i
The reduction of taxable amount for corporate income (profit) tax or personal income
tax from self-employment shall not exceed the annual non-taxable remunerations
given to students during practice and apprenticeship per apprentice.
Small values incentives for practical training and exercises of apprenticeship
shall be awarded in accordance with the relevant rules on small values assistance. The amount of state aid for practical training and exercises of apprenticeship shall be determined by multiplying the amount of the tax base by the
applicable rate of income tax, or the average rate of income tax.
36
FORMS AND DEADLINES FOR THE SUBMISSION OF FORMS
Name of the form
Form PD – Corporate income tax return, balance
sheet, profit and loss account, special calculation for
the use of relief, exemptions and incentives, declaration about the use of the excess tax paid according to
the return (if in advance payments the tax has been
paid in excess of what is calculated in the tax return),
review of losses carried forward per year
Evidence on paid advanced payments of corporate
income (profit)
Form PD-IPO – Report on business events with related
persons (from 1 January 2017)
Application form for requests for state support for
research and development project (Form 1)
Application for the use of incentive measures for investment
Application form for costs of research (Form 2)
Certificate issued by the Ministry of Science, Education and Sports13
Overview of eligible expenses for education and training
Report on the execution of the investment project,
the use of incentive incentives, and the preservation
of investments and jobs linked to the investment
for which the aid was provided
12
13
Deadline for submission
 four months after the expiry of the
period for which the corporate income tax (profit tax) is being assessed
 in the case of mergers and takeovers
the day of the merger or takeover
this evidence should be enclosed to the
corporate income tax return and
submitted by the taxable person that
paid advanced payments of corporate
income (profit)
with annual tax return, submitted by the
taxpayer if events with related persons
were recorded in business books during
the tax period
at the beginning of the project and at
the latest by the end of the fiscal period
for which state aid is requested
Form PD shall be enclosed with the copy
of Form 1 when submitting the first corporate income tax return
this form should be submitted to the
competent ministry12 before the start of
the project investment
this form should be enclosed to the corporate income tax return and submitted
by the taxable person beneficiary of state aid for research and development
projects
this form should be enclosed to the corporate income tax return and submitted
by the taxable person entitled to tax advantages in accordance with the Act on
State Aid for Education and Training
this evidence should be enclosed to the
submitted by the taxable person who is
the user of the investment incentive
The Ministry of Entrepreneurship and Crafts is responsible for micro, small and medium sized
enterprises, while the Ministry of Economy is responsible for large sized enterprises.
When government support for research and development project is needed, a certificate from
the Ministry of Science, Education and Sports shall be submitted to the tax authorities when
submitting the first annual income tax return. There is no obligation to present this certificate
with the annual report for the project for which the certificate is already filed.
37
Name of the form
Certificate of the competent ministry on the acquisiti- this evidence should be enclosed to the
on of rights to tax relief
submitted by the taxable person who is
entitled to the small value incentive (de
minimis)
List of data for boats, airplanes, apartments and this list should be enclosed to the corposummer houses which have been entered in fixed rate income tax return and submitted by
the taxable person that in fixed assets
assets
has recorded boats, airplanes, apartments and summer houses
Proof of share capital increase in the court register
with the annual tax return, but no later
Review of the status of capital and reserves after the than six months after the deadline for
procedure of share capital increase has been carried submitting an application is submitted
subject for the income tax which reduces
out in the court register for reinvested profits
the tax base for the reinvested profit
The decision on the use of the profit made in the
taxable period for which the tax return is submitted,
including the profits that are reinvested
A copy of the status of the incentive measure benefi- with an annual tax return, or 4 months
ciary
after expiry of the period for which the
form is submitted, the beneficiary who
Form GI-1 – Annual report on the use of incentive
used tax incentives under the Investment
measures for investment
Promotion and Improvement of Investment Environment Act files it to the tax
authorities.
“Application for tax refund for dividends under The three years from the expiry of the year in
which the remuneration was paid
Agreement for the Avoidance of Double Taxation
between The Republic of Croatia and— “
“Application for tax relief, tax exemption or tax refund three years from the expiry of the year
for interest under the Agreement for the Avoidance in which the remuneration was paid
of Double Taxation between the Republic of Croatia
and —”
“Application for tax relief, tax exemption or tax refund Republic of Croatia and — ”three years
for royalties under the Agreement for the Avoidance from the expiry of the year in which the
remuneration was paid
of Double Taxation between the
“Application for tax relief, tax exemption or tax refund three years from the expiry of the year in
for remuneration for activities performed in the Repu- which the remuneration was paid
blic of Croatia, under the Agreement for the Avoidance of Double Taxation between the Republic of Croatia and —”
Submitting forms electronically:
An income tax expense (completed electronic form SPD) must be submitted via the
system ePorezna by taxpayers who are under the Accounting Act sorted into large
and medium-sized enterprises.
Business books prescribed by the Accounting Act
Diary
Main book
Auxiliary books
38
PAYMENT ACCOUNTS AND DEADLINE FOR PAYMENT
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tax
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The account of income tax of the city/municipality is entered by headquarters/permanent or temporary residence of
the taxpayer
Write in the PIN-personal identification number of the taxpayer (11 digits)
Classification
14
Tax type
Payment due date
1651
Corporate income tax
1660
Income withholding tax on royalties and other in- Disbursement fees
tellectual property rights
1678
Income withholding tax on fees for market rese- Payment of fees.
arch, tax and business consulting, auditing services during
1686
Income withholding tax on dividends and profit Disbursement fees
shares
1694
Income withholding tax on interest
1864
Income withholding tax on services paid to per- Disbursement fees
sons who have their headquarters outside the EU,
in which the general or average rate of taxation is
lower than 12.5%
– by the end of the current month for the previous month (monthly down-payment) 14
– four months after the expiry of the period for
which the corporate income tax (profit tax) is
being assessed (based on the annual tax report)
Disbursement fees
Monthly payment of income tax is determined in proportion to the amount of tax payable
annually in the statement for the previous year by dividing the amount of tax due for the previous tax period by the number of months in the same period. The amount of the monthly tax
advance shall be determined based on data reported in the tax return for the previous tax period so that the tax liability is determined without any deduction of tax base for the amounts of
the stated tax benefits, with the exception of tax relief that may be granted for more tax periods, and the thus established tax liability is divided by the number of months in the same period. The tax authorities may, based on the exercised control, or based on other available information on the operations of the taxpayer, or at the request of the taxpayer, make the decision
to modify the amount of monthly advances of income tax.
39
OBLIGATION OF FISCALIZATION
All taxpayers are obliged to fiscalization:
1. Through an internal act define the manner of numbering accounts and list the
premises with their description,
2. Invoices that taxpayers issue for goods delivered or services must include all
required elements.
In addition to the information prescribed by the General Tax Act, the Value Added Tax
Act, or other special provision, an invoice must contain the following information:
A) Date and time of invoice – the date, hour, minute
B) Invoice number – consists of three groups, namely:
a) invoice number – each calendar year ranges from number 1, no gaps, by every
premise or device in the premises. The taxpayer prescribes the rules of succession
of invoice numbers with an internal act at the beginning of fiscalization.
b) designation of business premises – The taxpayer prescribes the labeling rules
of business premises with an internal act at the beginning of fiscalization.
c) marking of invoice device – the number of invoice devices in invoices for cash
transaction, and an invoice location mark in non-cash transactions
C) method of paying – cash (notes and coins, checks, cards, etc.) or non-cash
(wire transfer orders, letters of credit, bills of exchange, promissory notes, etc.).
3. In closed premises at each invoice device, or other visible places, place a
prominent notice about the obligation to issue an invoice, and the obligation
of the buyer to take and keep the invoice issued.
Taxpayers, who trade in cash in addition to the above-mentioned obligations
that are prescribed for all taxpayers, are required to complete the following:
1. If they have not previously done so, obtain from the Financial Agency a certificate application for electronic signing of invoice elements for identification
during electronic data exchange with the Tax Administration.
2. Prior to the commencement of the process of fiscalization of invoicing, adapt
the existing or acquire electronic invoice devices with software that enables
electronic signing of invoice elements and electronic data exchange with the
Tax Administration.
i
Exceptionally, the taxpayer that carries out the activity in the area in which it is not
possible to establish an Internet connection to exchange data with the Tax Administration, a simplified procedure of fiscalization carried out, as well as small taxpayers.
The payer, through a confirmation from HAKOM, proves the impossibility of establishing an Internet connection.
3. Prior to the commencement of the process of fiscalization of invoices, electronically submit data to the tax authorities on the business area in which an
activity is performed, and this data was previously determined by an internal
act. If the taxpayer has several office premises, they are required to submit
information for each business premises. Business premises are designated
with the same markings that are in the invoice number.
4. For the cash traffic, issue invoices with the prescribed content through invoice
machines that provide electronic signatures of invoice and an Internet connection for the electronic exchange of data with the Tax Administration.
40
5. In case of failure of invoice devices, have a prepared imported ledger that is
certified at the competent Tax Administration.
TAX REGULATIONS
Profit Tax Act (Official Gazette No. 177/04, 90/05, 57/06, 146/08, 80/10, 22/12,
148/13, 143/14),
General Tax Act (Official Gazette No. 147/08, 18/11, 78/12, 136/12, 73/13,
26/15, 44/16),
Cash Transaction Fiscalization Act (Official Gazette No. 133/12),
Act on Areas of Special National Concern (Official Gazette No. 86/08, 57/11,
51A/13, 148/13, 76/14, 18/15),
Act on the Reconstruction and Development of the City of Vukovar (Official Gazette No. 44/01, 90/05, 80/08, 38/09, 148/13),
State Aid Act (Official Gazette No. 47/14),
Investment Incentives Act (Official Gazette No. 102/15),
Directive on Investment Incentives (Official Gazette No. 31/16),
Free Zones Act (Official Gazette No. 44/96, 92/05, 85/08, 148/13),
Act on Science and Higher Education (Official Gazette No. 123/03, 105/04, 174/04,
2/07, 46/07, 45/09, 63/11, 94/13, 139/13),
Act on State Aid for Education and Further Training (Official Gazette No. 109/07,
134/07, 152/08, 14/14),
Act on District Areas, Cities and Municipalities in the Republic of Croatia (Official
Gazette No. 86/06, 125/06, 16/07, 95/08, 46/10, 145/10, 37/13, 44/13 and 45/13),
Act on Regional Development of the Republic of Croatia (Official Gazette No.
153/09, 147/14),
Small Business Development Promotion Act (Official Gazette No. 29/02, 63/07,
53/12, 56/13),
Regulation on Development Index (Official Gazette No. 63/10, 158/13),
Decision on Classification of Local and Regional Self-government Units according
to Development Level (Official Gazette No. 158/13),
Decision on the Regional Aid Maps (Official Gazette No. 19/13, 155/13),
Accounting Act (Official Gazette No. 78/15, 134/15),
Decision on Publishing Croatian Financial Reporting Standards (Official Gazette
No. 86/15),
Decision on Publication of the Interest Rate on Loans between Related Entities
(Official Gazette No. 137/15),
Act on Electronic Documents (Official Gazette No. 150/05),
Act on Electronic Signatures (Official Gazette No. 10/02, 80/08),
Profit Tax Ordinance (Official Gazette No. 95/05, 133/07, 156/08, 146/09,
123/10, 137/11, 61/12, 146/12, 160/13, 12/14, 157/14, 137/15),
Ordinance on the State Support for Research and Development Programs (Official Gazette No. 116/07),
Ordinance on the Manner of Achieving the Tax Relief by Corporate Income Tax
Payers in the City of Vukovar and in the Areas of Special National Concern (Official Gazette No. 157/14),
41
Ordinance on the Manner of Calculation of Carried out Investments and Supports
Used for Investment and How to Achieve Tax Benefits for Users of Free Zones (Official Gazette No. 122/08, 33/10, 52/10),
Ordinance on Fiscalization in Dealing with Cash Transfers (Official Gazette No. 146/12),
EU Regulation on the Principles of Acting in Good Faith for Participants in a Taxrelated Legal Relationship, on the Business Unit, as well as the Forms for Reporting Tax Relevant Facts and Stating the Sources of Acquisition of Assets, Official
Gazette No. 59/09;
Ordinance on the Structure and Content of Annual Financial Statements (Official
Gazette No. 38/08, 12/09, 130/10, 30/13),
Ordinance on the Form, Content, Deadline and Manner of Delivery of Business Books,
Records and Reports that are kept in Electronic Form (Official Gazette No. 59/09),
Ordinance on Filing Tax Returns and Providing Other Data Electronically (Official
Gazette No. 51/11, 62/11),
Regulations on Electronic Signature, Use of Instruments for Electronic Signatures,
General and Special Conditions of Business for Providers of Time Stamp and Certificates (Official Gazette No. 107/10),
Order on Payment of Budget Revenues, Mandatory Contributions and Revenues
for Financing Other Public Needs in 2016 (Official Gazette No. 35/16).
1.2 TAX PER TONNAGE OF THE SHIP
Tax per tonnage of the ship is a tax determined and paid in lieu of income tax, regardless of the actual profit or loss incurred in the tax period for which the tax liability by tonnage of the ship is determined. The first application in the tax system
by tonnage prescribed by the Maritime Code refers to a period of ten years starting
from 1 January 2014 and is submitted to the Ministry of Maritime Affairs, Transport and Infrastructure at the latest six months before the start of the period to
which it relates.
In the fleet of ships participating in the tax system by tonnage of the ship, at least
60% of the total net tonnage of ships must be ships of Croatian nationality or some
of the Member States of the European Union or the European Economic Area.
i On ships participating in the tax system in by tonnage of the ship, the least number
of deck or machine trainees must be on board that are citizens of Croatia or some of
the EU Member States, set in the annual plan of the number of trainees, which is
determined by the ratio of trainees and officers (1 apprentice for every 10 officers in
the total number of officers of all ships that the taxpayer reported in the tax system
in terms of tonnage of the ship).
i In the fleet of ships participating in the tax system by tonnage, all ships that meet the
conditions laid down for participation in the tax system by tonnage must be registered, but if the log on to the tonnage tax system is submitted by one of the related
legal entities in relation to the ruling and ship-owning subsidiary companies and all
other associated ship owning companies that are part of this group must register into
the tax system by tonnage all ships that meet the conditions laid down for participation in the tax system by tonnage.
i
42
TAXABLE PERSONS
A legal entity based in the Republic of Croatia, or whose place of effective management and control of operations is in the Republic of Croatia, if they meet the conditions laid down in the Maritime Code, and if they state that instead of income tax,
they shall pay taxes by tonnage of the ship, and in relation to profits realized:
a) from maritime navigation affairs in ships they own, or are owned by its domestic or foreign subsidiary ship-owning companies, ships leased, or chartered, and ships given in lease to their domestic or foreign subsidiary shipping
companies or companies owned by third parties, in which the proportion of
vessels given to lease to third parties may not exceed 20% of the net tonnage
of the fleet of each taxpayer, while the net tonnage of chartered ships may
not exceed 75% of the net tonnage of the ships of the taxpayer, unless the
chartered ships are registered in the register of the member States of the European Union or the European Economic Area.
b) providing services of managing ships for the technical management of the
ship and/or filling the boat with crew, under the following conditions:
– that no less than 51% of its staff are nationals of the European Union or
the European Economic Area,
– that two-thirds of ships under their guidance are from the Member States
of the European Union or the European Economic Area, regardless of
whether they are managed from the manager’s office or subcontracted to
other managers,
– that 60% of ships run are registered in the registers of the Member States
of the European Union or the European Economic Area and
– they comply with other requirements contained in the rules and EU guidelines on state aid to ship management companies.
c) from the sale of ships registered in the tax system in terms of tonnage and
their equipment, from the sale of shares or stock in shipping companies
whose ships that are involved in the tax system by tonnage perform maritime
navigational operations, from income from dividends and profit shares they
have in dependent commercial shipping companies at home and abroad, and
whose ships involved in the tax system by tonnage conduct maritime navigational operations, from interests and other income arising from the use of
bank accounts and deposits on bank accounts, insurance and contracts on
limiting currency risks related to the performance of the shipping activities
of ships whose net tonnage is included in the calculation of taxes by ship
tonnage.
i
If the taxpayer of the tax on tonnage of the ship is a legal entity that is associated with
other shipping companies, the income tax exemption from items a), b) and c) shall
also apply to subsidiary ship owning trading companies15 through which the taxpayer
exploits ships registered in the tax system by tonnage, or who generate their ownership rights with respect to registered ships.
43
All ships involved in the tax system by tonnage of the ship must be strategically and
commercially managed from Croatia or another Member State of the European Union or the European Economic Area.
i The taxpayer shall, without delay, and no later than 30 days after the change, report
to the Ministry of Maritime Affairs, Transport and Infrastructure of any changes regarding the number, tonnage, nationality and ownership of vessels whose net tonnage is involved in the calculation of tonnage ship tax as well as the change of any
facts relevant to the fulfillment of the conditions for the payment of taxes by the
tonnage of the ship.
i
TAX CALCULATION PER TONNAGE
Net tonnage of ship
0-1000 net tons
1001 – 10 000 net tons
10 001 – 25 000 net tons
25 001 – 40 000 net tons
More than 40 000 net tons
Annual tax per tonnage of the ship for every
100 units of net tonnage
HRK 270.00
HRK 230.00
HRK 150.00
HRK 95.00
HRK 55.00
NOTE: for every less than 100 units of net tonnage tax per tonnage is determined
proportionally.
Name of the form
Registering into the tonnage tax system (submitted to
the Ministry of Maritime Affairs, Transport and Infrastructure, which notifies the Tax Administration)
The form of the annual plan of loading trainees
(made by taxpayer of the tax by tonnage and legal
person applying into the tax system by tonnage of
the ship and is approved by the Ministry of Maritime
Affairs, Transport and Infrastructure)
Registration of tax per tonnage of the ship for the
year (Form PT) (submitted to the competent Tax Administration office)
The form of the declaration of the implementation of
the annual plan of loading trainees (submitted to the
Ministry of Maritime Affairs, Transport and Infrastructure)
– Six months before the start of the period for which the tax per tonnage is
assessed (for a period of 10 years)
– 15 days from the establishment, and
no later than the beginning of the calendar year of the tax by tonnage
15
no later than four months after the
expiry of the period for which the tax per
tonnage of the ship is being assessed
30 days after the expiration of the calendar year covered by the Annual Plan for
boarding trainees
The dependent company may not perform any other activities other than maritime navigation
operations.
44
TAX PAYMENT PER TONNAGE
The taxpayer pays advance on the tax based on the tax return for the previous tax
period. The advance is paid monthly by the end of the month for the previous
month in the amount that is obtained when the tax liability for the previous tax
period is divided by the number of months in the same period, or in the case of the
first tax year after entering the tax system by tonnage, based on an assessment of
tax liability on the basis of data from the application in the tax system by tonnage.
The taxpayer is required no later than four months after the end of the calendar
year for which the tax by tonnage is assessed to apply to the competent Tax Administration office the tonnage tax for the previous calendar year and within that
deadline pay taxes by tonnage.
The obligation to pay the tax set in the tax return for each tax period is reduced by the paid advance tax by tonnage. The overpaid advance tax than the
liability on the tax return is returned to the taxpayer at their request or is included in the following period.
i
For the ship for which the taxpayer paid tax by the tonnage of the ship abroad or its
equivalent tax, the actually paid tax abroad shall be included in the domestic ship
tonnage tax up to the amount of domestic tax by tonnage of the ship. For the purpose of crediting the tax paid abroad, the taxpayer is required when filing tax by
tonnage returns, to the tax authorities provide proof of an equivalent tax paid abroad.
PAYMENT ACCOUNT
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Write in the account for the payment of income tax based on the city/municipality in which the
taxpayer has its headquarters/place of residence
Write in PIN-personal identification number of the taxpayer (11 digits)
45
TAX REGULATIONS
Maritime Act (Official Gazette No. 181/04, 76/07, 146/08, 61/11, 56/13, 26/15),
General Tax Act (Official Gazette No. 147/08, 18/11, 78/12, 136/12, 73/13, 26/15,
44/16),
Ordinance on Procedure and the Use of Tax Rights Per Tonnage of the Ship (Official
Gazette No. 90/13),
Income Tax Ordinance (Official Gazette No. 95/05, 133/07, 156/08, 146/09, 123/10,
137/11, 61/12, 146/12, 160/13, 12/14, 157/14, 137/15),
1.3 VALUE ADDED TAX (VAT)
TAXABLE PERSONS
1. Any person who independently carries out any economic activity, whatever
the purpose and result of the activity, is required to register in the VAT Register, if the value of shipments of goods and services provided in the previous year was higher than HRK 230,000.00
An economic activity is any activity of producers, traders or persons providing
services, including mining and agricultural activities and activities of free professions. An economic activity is considered the exploitation of tangible or
intangible property for the purpose of permanent realization of revenues.
i
The value the supply of goods and services, excluding VAT, for registration of VAT payers for HRK 230,000.00 includes: delivery of goods or services that are VAT-taxable,
delivery of goods or services which are exempt from VAT with the right to discounted
pre-tax (delivery in another member State of the European Union, export deliveries,
services on movable property, supplies relating to international transport, delivery that
are tied to exports, brokerage services performed on behalf of and for the account of
another person, delivery of real estate and shipping goods or services that are exempt
from VAT without the right to deduct input tax (the transaction of insurance and reinsurance, and banking and financial services, unless they are auxiliary).
When calculating the value of shipments of goods and services for registration into
the register of VAT payers, the deliveries of tangible and intangible economic assets
of the taxpayer are not taken into account.
NOTE: a small taxpayer may at his/her own request be entered into the register of VAT
payers even though the value of his supplies of goods or services performed in the
previous calendar year did not exceed HRK 230,000.00. If the Tax Administration
within 8 days of receipt of the request does not issue a ruling, it is considered that the
request was approved. The taxpayer is obliged to, for the following 5 calendar years,
apply the regular procedure of taxation (they are obliged to in the invoices calculate
and pay VAT on supplies of goods or services and has the right to deduct pre-tax).
46
i
A small taxpayer is a legal person with headquarters or permanent business unit in
the country, or a natural person with a domicile or habitual residence in the country,
the value of whose supply of goods or services performed in the previous calendar
year did not exceed HRK 230,000.00. A small taxpayer is exempt from paying VAT on
goods or services, has no right to indicate VAT on invoices issued and has no right to
deduct input tax. Exemption from payment of VAT does not apply to supplies of new
means of transport to another Member State, and when there is a transfer of tax liability to these taxpayers, (e.g. when their service is performed by a taxpayer who has
no headquarters, domicile or habitual residence in the country).
2. Any person on the territory of Croatia that does not have headquarters,
business unit, domicile or habitual residence, and performs supply of
goods or services for which there is no right to deduct VAT in Croatia,
except when they perform supply of goods or services for which VAT is
paid by the recipient of goods or services
When a taxpayer who is based in another EU Member State is obliged to pay VAT in
the country, they may appoint a tax representative as the person who is liable to pay
VAT. A taxpayer who is not established in the country nor in the EU, but in a third
country or third territory, when they are obliged to pay VAT within the country, they
must appoint a tax representative as the person who is liable to pay VAT if the Republic of Croatia has not concluded agreements on mutual assistance which are similar
in scope to those laid down in Council Directive 2010/24/EU of 16 March 2010 on
mutual assistance for the recovery of claims relating to taxes, duties and other measures (OJ L 84, 31 March 2010) and Council Regulation (EU) no. 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value
added tax (OJ L 268, 12 October 2010). The taxpayer does not have to appoint a tax
representative if they perform services under a special procedure of taxation of telecommunications services, radio and television broadcasting and electronically provided services, and when, on the territory of Croatia, they only occasionally engage in
international road transport of passengers.
i A tax representative can be a taxpayer with headquarters or domicile or habitual
residence in the country. The tax representative may not be a subsidiary nor a business unit of a foreign legal entity. The tax representative shall be liable for payment of
VAT as paying guarantor and is authorized to receive documents, applications and all
transactions related to the assessment and payment of VAT.
i
3. Any person who occasionally delivers new transport vehicles if a seller,
ships or transports those vehicle to the customer to the territory of the
other EU Member State, or the customer transports them themselves,
or any other person on their behalf ships or transports them to the territory of another EU Member State
4. The bodies of state power, government bodies, authorities and local
and regional (regional) governments, chambers and other public authorities when performing activities or transactions within their remit
or powers, and carrying out these activities leads to a significant distortion of the principle of market competition
47
5. The bodies of state government, government bodies, authorities and
units of local and regional (district) governments, chambers and other
bodies with public authorizations if they perform certain activities and
the activities of exploitation of tangible and intangible assets, unless
these activities are performed in a negligible extent.
i
It is believed that these bodies carry out activities in a negligible extent if the value of
shipments in the previous calendar year did not exceed HRK 230,000.00.
Taxpayers in the special procedures of taxation:
1. Margin taxation shall apply to supplies of used goods, works of art, collectors’
items and antiques
The taxpayer is the reseller who purchases used goods, works of art, collectors’
items and antiques for further resale, and the special procedure of margin taxation is applied.
i
Margin taxation shall apply to supplies of used goods, works of art, collectors’ items
and antiques, by when the listed goods have been supplied to a dealer by:
a) persons who are not taxpayers,
b) taxpayers who supplies goods exempt from taxation,
c) entrepreneurs whose annual value of supplied goods and services, after deducting
the value of supplies eligible for tax exemption, in the preceding calendar year, did
not exceed HRK 230,000.00,
d) another dealer in so far as the supply of goods by the other dealer is subject to the
special margin taxation procedure.
2. Special procedure of taxation of investment gold
A taxpayer who, in the framework of their activities, produces investment gold or
transforms gold into investment gold has the right to choose whether to tax the
delivery of investment gold to another taxpayer.
i
If the supplier of investment gold decides to tax shipments of investment gold, then
the mediator, who acts in the name and for the account of another person when
mediating in the shipment of gold for their client, also has the right to choose taxation. For deliveries of gold material or semi-manufactured products of gold purity
reaching 325 thousandths or greater, or investment gold where the right to choose
taxation applies, the recipient of these shipments pays VAT.
3. Special procedure of taxation of travel agencies
Special procedure of taxation applies to the operations of travel agents when doing business with customers in their own name, while using the supplies of goods
and services of other taxable persons for performing travel services.
i
In terms of the Value Added Tax Act travel agencies are considered as tour operators.
These are persons who provide transportation, accommodation and other tourist
services to the customer. For the application of the special procedure of taxation it is
important that one of the services related to travel is performed, such as accommodation or transportation.
48
If the organizer provides the service of travel organization that consists of services
provided by the travel organizer and services provided by other taxable persons, the
special procedure of taxation applies only to that part of the service that the organizer uses from other taxpayers.
i If a travel agency acts as a mediator, then the amounts, that the taxpayer charges or
receives from the customer as a refund of expenditures that were paid for in their name
and for their account and that are entered in the records as ephemeral items, do not
enter the tax base. The taxpayer must have evidence of the expenditure amount in connection with ephemeral items and cannot deduct VAT if VAT was calculated.
i
Transactions that a travel agency makes in connection with a tour are seen as a
unique service that a travel agency carries out for a customer. The conducted
service is taxable according to the location of the travel agency’s headquarters or
permanent business unit whence services are performed.
The taxable base is the difference in the travel agency’s costs, i.e. the difference
between the total fee, excluding VAT, which the customer pays and the actual
costs of the travel agency for supplying goods or services that were provided by
other taxpayers, if those transactions were directly supplied to the customer.
If the transactions that a travel agency assigns to another taxpayer are performed
outside of the European Union, then these services are considered an intermediary service, which is exempt from paying VAT. If these transactions are performed
both inside and outside of the European Union, only that part of the travel agency’s service that relates to transactions outside of the European Union is exempt.
VAT charged to the travel agency by other taxable persons on transactions that
the agency makes in connection with a tour and which are directly carried out to
its customers cannot be deducted or refunded.
4. Special taxation procedures for telecommunication services, radio and television
broadcasting services, and electronically supplied services to non-taxable persons
These procedures of taxation apply to the taxation of telecommunication services, radio and television broadcasting services, and electronically supplied services
that a taxpayer performs for non-taxable persons whose head office, place of
residence, or habitual residence is in one of the EU Member States.
The obligation of registration:
A taxpayer is required to check in with the appropriate branch office of the Tax
Administration according to their headquarters (legal entity) or place of residence
or habitual residence (physical person) in order to register in the Register of VAT
Taxable Persons at the latest by January 15th of the current year if the value of their
total annual taxable deliveries of goods and provided services in the previous calendar year exceeded HRK 230,000.00.
i
From January 1st of the current year, the taxpayer is required to keep all business
books prescribed by the Value Added Tax Act and to submit VAT reports within legal
deadlines.
49
Payers of income tax and corporate tax can register in the Register of VAT Taxable
Persons at the beginning of their business conduct prior to the first delivery of
goods and services. After that, they are required to calculate and pay VAT on performed deliveries and they also have the right to input tax deduction.
i
A taxpayer that starts their business conduct and is not registered in the Register of
VAT Taxable Persons but has calculated VAT on completed deliveries plus submitted a
VAT report within legal deadlines for the period of taxation is enrolled in the Register
by the Tax Administration from the first day of the taxation period to which the VAT
report applies, while the taxpayer is enrolled in the Register of VAT Taxable Persons at
their own request. The Tax Administration may within 8 days from the date of receiving the registration request issue a decision to reject an application for registration in
the Register of VAT Taxable Persons if the taxpayer is unavailable or is not at the address specified in the request.
Issuance of a VAT identification number
A VAT identification number is mandatory for taxpayers who ship goods and/or
acquire them within the EU. The request is to be submitted to the appropriate
branch office of the Tax Administration no later than 15 days prior to the commencement of carrying out such transactions.
A person whose total value of acquired income within the EU during the current
calendar year is greater than HRK 77,000.00 (threshold of acquisition) is required
to submit a request for the issuance of a VAT identification number to the appropriate branch office of the Tax Administration 15 days prior to the acquisition of
income goods whose total value will exceed the prescribed amount.
i
A domestic taxpayer who acquires goods within the EU is required to calculate VAT
on such income in accordance with the Croatian regulations on VAT. If a Croatian
taxpayer does not have a VAT identification number, the supplier of goods from another EU Member State shall calculate VAT on the completed delivery of goods in
accordance with the regulations of its own Member State.
Validation of VAT identification numbers of business partners from other
Member States can be done via:
– website of the European Commission
(http://ec.europa.eu/taxation_customs/vies)
– e-mail addressed to the Tax Administration
(provjera-valjanosti@porezna-uprava.hr)
The Tax Administration assigns a VAT identification number to the following persons:
a domestic taxpayer who is registered in the Register of VAT Taxable Persons
and performs transactions within the EU,
a domestic taxpayer that supplies goods or renders services without the right
to input tax deduction, a small taxpayer and a legal entity who is a non-taxable person and who is required to pay VAT on the acquisition of goods within
the EU or has opted for the possibility of paying VAT on income regardless of
the fact that they have not crossed the acquisition threshold (HRK 77,000.00),
50
each domestic taxpayer who acquires goods within the EU in order to carry
out economic activities abroad,
a domestic taxpayer to whom a foreign taxpayer rendered a service, whereby
the domestic taxpayer is required to pay VAT on the received service,
a domestic taxpayer who renders services on the territory of another EU Member State for which the recipient of the services is required to pay VAT in that
Member State,
to a foreign taxpayer who carries out the delivery of goods and services in the
country with the right to input tax deduction,
a foreign taxpayer who supplies goods to persons who are exempt from
paying income VAT and who has crossed the shipping threshold (HRK
270,000.00) or discontinued from the specified shipping threshold,
a foreign taxpayer who supplies physical persons with goods that are subject to excise duties.
i
The VAT identification number is not awarded to a person who occasionally delivers
new means of transport within the European Union (occasional taxpayer).
Domestic taxpayers who submit an application for a VAT identification number are
awarded one by the appropriate branch office of the Tax Administration according
to the natural person’s place of residence, i.e. a legal entity’s head office. Foreign
taxpayers submit applications for this number to the Regional Office of the Tax
Administration in Zagreb.
i
The Tax Administration can revoke a VAT identification number in case of suspected
misuse.
VAT applies to the taxation of:
1. the delivery of goods or rendering of services in the country for a fee
2. unauthorized billing with stated VAT,
3. the acquisition of goods within the European Union for a fee, i.e. the acquisition whereby a taxable person or legal entity, who is not a taxpayer in the
current calendar year, has crossed the acquisition threshold (HRK 77,000.00)
or discontinued from the acquisition threshold
4. the acquisition of new means of transport and excise products
5. imports of goods when the required conditions are met.
VAT is required to be paid by:
• any VAT taxable person who carries out taxable supplies of goods and services, except when the recipient of goods or services is required to pay VAT,
• every person who completes the acquisition of taxable goods within the European Union and the recipient of the taxable supply of goods in a threeparty business,
• any person who is considered an importer, i.e. a customs debtor or recipient
of goods according to customs regulations,
• acquirers of new means of transport,
• invoice issuers that incur a higher VAT than they owe, or if the invoice for the
delivered goods or supplied services shows VAT even though the issuer is not
51
authorized, or if an invoice is issued even though the goods were not delivered or services not rendered,
• each taxable person or a legal entity that is not a taxpayer but is registered for
the purposes of VAT whose taxable supplies of goods and services are rendered by a taxpayer that does not have a head office, place of residence, or
habitual residence in the country,
• each person registered for the purposes of VAT in the country that had gas,
electricity, heating, or cooling services delivered via the natural gas system on
the territory of EU or any network connected to such a system, if the delivery
was performed by a taxpayer who does not have a head office, place of
residence, or habitual residence in the country.
IMPORTANT NOTICE: a taxpayer who had goods or services delivered to them in
the country acts as a paying guarantor for the payment of VAT if out of objective
circumstances it should arise that he/she knew or should have known that with
such a transaction he/she was involved in fraudulent activities with the intention
of avoiding paying VAT. If the Tax Administration suspects that the supplies of
goods and services are part of transactions whose intention is to avoid paying
VAT, then it will inform the taxpayer who participates in such transactions about
these circumstances and his/her liability for paying VAT. From the date of receiving such a notice, the Tax Administration will assume that the taxable person
knew, or should have known, that by participating in such transactions he/she
was getting involved in fraudulent activities whose intention was that of avoiding
paying VAT. A taxpayer who had goods or services delivered to them in the country is liable for paying VAT if an invoice or other document, which states the cost
of delivered goods or supplied services, was not issued or if VAT was calculated
incorrectly, and if the taxpayer who made the delivery was not paid the least
amount of VAT stated in the invoice (within the time limit prescribed by a special
regulation on financial operations) from the invoice’s issue date.
Areas where VAT is applied:
The country, EU, “third areas” and “third countries”.
The country implies the whole area of the REPUBLIC OF CROATIA.
EU and the territory of the Member States is defined by the Treaty on the EU, except
“third areas”
i A third country is any country or area that is not an area of the EU, i.e. an area
where the Treaty on the EU does not apply.
i A third area is a part of a Member State that is excluded from the EU. These are:
a) in the Federal Republic of Germany -the island of Heligoland and the area of Büsingen,
b) in the Kingdom of Spain – Ceuta, Melilla and the Canary Islands,
c) in the Republic of Italy – Livigno, Campione d’Italia and the Italian waters of Lake
Lugano,
d) in the Republic of France – French areas referred to in Article 349 and 355 Paragraph 1 of the Treaty on the Functioning of the European Union,
i
i
52
e) in the Hellenic Republic – mount Athos,
f) in the Republic of Finland – Åland Islands,
g) in the United Kingdom of Great Britain and Northern Ireland – the Channel Islands.
Transactions to and from the Principality of Monaco are deemed as transactions carried out to and from the Republic of France. Transactions to and from
the Isle of Man are deemed as transactions performed to and from the United
Kingdom of Great Britain and Northern Ireland. Transactions to and from the
Sovereign Bases of the United Kingdom of Great Britain and Northern Ireland,
Akrotiri and Dhekelia, are deemed as transactions performed to and from
Cyprus.
Transfer of tax liabilities from the supplier to the customer:
A taxpayer who is registered in the Register of VAT Taxable Persons in the Republic
of Croatia is required to pay VAT whenever he/she receives the following shipments:
1. construction services, under which are deemed services in connection with construction, maintenance, reconstruction, or removal of buildings, including cleaning and repair services, namely:
a) work relating to construction (construction, maintenance, reconstruction,
and removal of a building or its parts) from Annex II which is an integral part
of the Value Added Tax Ordinance,
b) accompanying work necessary for the completion of work referred to in item
a) which is by contract arranged and completed together with work referred
to in item a),
c) work relating to horticultural landscaping and renovation of environment if
performed in the framework of construction and reconstruction of an individual building,
d) services performed in the framework of architectural, construction, surveying,
engineering, and electro-technical industry if the rendering of those services
is necessary for the rendering work referred to in item a),
e) services of construction supervision in accordance with provisions which regulate the architectural and engineering jobs and activities in physical planning
and construction,
f) transfer of personnel, if they carry out construction services,
g) renting of machinery and equipment for construction, with operators,
h) cleaning services carried out in the framework of construction,
i) installation, calibration, testing, commissioning and similar services when performed on devices and equipment during construction or reconstruction of a
building,
j) occupational safety coordinator services in connection with the execution of
works referred to in item a),
k) geo-mechanical, geotechnical, geophysical and similar exploratory work if rendering those services is necessary for the rendering of work referred to in item a),
53
2. delivery of used material and one that in its present state cannot be used again
but as such is used as raw material in the production of other products (it lost its
original function, quality, appearance, and the like), industrial and non-industrial
waste, recyclable waste and partially treated waste, specifically:
a) delivery of ferrous and non-ferrous waste, scrap, and used materials including
semi-finished products resulting from the processing, manufacturing, or
melting of iron or non-ferrous metals and their alloys,
b) shipment of ferrous and non-ferrous semi-processed products and certain
related processing services,
c) delivery of scrap and other recyclable material which consists of ferrous and
non-ferrous metals, their alloys, slag, ash, scale, and industrial residues containing metals or their alloys, and the provision of services of sorting, cutting,
grinding, and pressing these products,
d) delivery and specific processing services of ferrous and non-ferrous waste,
chips, crushed iron and used as well as recyclable material that contains debris, glass, paper, cardboard and carton, rags, bones, leather, artificial leather,
parchment, raw leather and fur, tendons and ligaments, string, ropes, lines,
cables, rubber and plastic,
e) delivery of the above-mentioned materials after processing (cleaning, polishing, sorting, cutting, shredding, pressing, or casting into ingots),
f) shipments of metal scrap incurred in processing raw materials,
3. delivery of buildings or their parts and the land on which they are located after
first residence, or those where more than 2 years elapsed from the date of first
residence, i.e. use, up to the date of next delivery, and the delivery of land, except
building plot, where the supplier opted for taxation, provided that the buyer is a
taxpayer that has the right to input tax deduction in its entirety,
i
The right to choose taxation and the right to input tax deduction may be applied at
time of delivery.
4. delivery of real estate that the enforcement debtor sold in enforcement proceedings,
5. transfer of emission units of greenhouse gases in accordance with the regulations governing the system of trading emission units of greenhouse gases.
The taxable period spans from the first to the last day of the month. Exceptionally, for taxpayers whose value of delivered goods and services, including VAT, in
the previous calendar year was less than HRK 800,000.00, taxable periods span
from the first to the last day of a trimester. Such taxpayers can submit an application to the Tax Administration for tax return for periods from the first to the last day
of the month.
For a taxpayer who performs transactions within the EU and for a taxpayer
who does not have a head office, fixed business unit, permanent residence, or
habitual residence in the country, taxable periods are from the first to the last
day of the month.
54
Tax liability or the right to a VAT refund during a taxable period (monthly or
quarterly) is determined by the taxpayer, whereby both the VAT on issued invoices
(accrued expenses) for delivered goods and supplied services and the VAT on received supplies of goods and services during the taxable period are reduced by the
VAT on received shipments and the stated VAT on inbound invoices for the received
supplies of goods and services during that taxable period.
i
VAT liability occurs when a taxable event happens, i.e. when goods are delivered or
services rendered.
Exceptionally, the calculation according to collected considerations may be
applied to taxpayers with a head office, permanent business unit, permanent residence, or habitual residence in the country who in the previous
calendar year completed deliveries of goods and services, excluding VAT,
which valued no more than the three million HRK. Such taxpayers determine
their tax obligation or right to a VAT refund in a taxable period (monthly or quarterly) by reducing both the VAT in their received (collected) considerations for issued invoices per delivered goods and rendered services and the VAT on received
supplies of goods and services in the taxable period by the VAT on their received
shipments and the stated VAT on paid inbound invoices for the received supplies
of goods and services in that taxable period.
On issued invoices the taxpayer must specify: calculation according to received
(collected) considerations.
VAT liability occurs on the date of payment receipt, and the right to pre-tax deduction
occurs at the moment when a taxpayer has paid an invoice for delivered goods or
supplied services.
i Time of payment in case of
– remittance in favor of a transaction account – the date of deposit on the account,
– received bills of exchange – the date of deposit or transfer (endorsement) of the bill,
– cheque – the date of receipt,
– credit cards – the date of deposit on the account,
– offsetting, assignation, cession, and transfer of debt – when prescribed terms and
conditions are attained, i.e. the signature date of the corresponding contracts or
other documents,
– exclusion of goods and use of services for non-business purposes – end of the taxable period in which the goods were exempt or services rendered.
i
A taxpayer who wishes to apply the taxation procedure according to collected
considerations must no later than the end of the current calendar year submit a
written statement to the appropriate branch office of the Tax Administration. From
January 1st of the following calendar year, he/she can apply the taxation procedure
according to collected considerations whereby he/she is required to apply this procedure for 3 calendar years. A taxpayer who commences business activities and
submits a request to register for the purposes of VAT in which he/she opted for the
55
taxation procedure according to collected considerations is required to apply this
procedure for the next 3 calendar years from the date specified in the request.
A taxpayer who calculates and pays VAT according to delivered shipments is not
liable to tax while opting for accounting method according to collected considerations for goods and services delivered prior to the transition, yet charged after the
change in the tax accounting method.
When the appropriate branch office of the Tax Administration determines that a
taxpayer who applies the taxation procedure according to considerations collected
in the previous calendar year has reached the value of taxable deliveries larger than
three million HRK, it will issue a decision on the prohibition of the application of
the taxation procedure according to collected considerations, whereby an appeal
does not postpone the execution of the decision. Such a taxpayer must from January 1st of the current calendar year calculate VAT according to delivered shipments
and correct invoices where he/she stated the notice “calculation according to collected considerations”.
Supplies of goods and services, without VAT, which are included in the
value of shipments of three million HRK: supplies of goods and services subject to VAT, delivery of goods and services exempt from VAT
with the right to pre-tax deduction (delivery in another EU Member State,
export deliveries of goods, export of goods to authorized bodies, supplied services including transport and related ancillary services in connection with export), services relating to movable assets (acquired or imported in the Republic of Croatia for the purposes of rendering these services), international
transport (deliveries of fuel and goods for the supply of vessels and war ships,
deliveries, modifications, repairs, maintenance, renting, and hiring of vessels
and equipment relating to these vessels plus supplied services for the needs of
these vessels, deliveries, modifications, repairs, maintenance, renting, and hiring of aircraft and equipment relating to these aircraft, shipments of fuel and
goods for their supply plus supplied services for the needs of these aircraft),
shipments equaled with export (deliveries within diplomatic and consular
agreements, deliveries to the EU or its organizations, shipments to international bodies, shipments for the needs of the armed forces of other NATO
Member States, deliveries of gold to central banks), mediation services performed in the name and for the account of another person (together
with export shipments, services relating to movable assets, shipments in connection with international transport and shipments equaled with export plus
transactions performed outside of the EU), deliveries of real estate plus
insurance and financial services exempt from VAT without the right to
pre-tax deduction (transactions – which are not ancillary – in the framework
of insurance and reinsurance activities, approving and contracting loans, contracting loan guarantees, in connection with savings, current and giro accounts, in connection with currencies, banknotes and coins, in connection
with stocks, shares in trading companies or associations, bonds and other securities plus management services relating to special investment funds).
56
When calculating the value of the deliveries of goods and services, the deliveries of
tangible and intangible economic assets of a taxpayer are not taken into account.
The taxation procedure according to collected considerations does not apply to:
a) deliveries and acquisition of goods within the European Union,
b) deliveries or relocation of goods which are dispatched or transported to a Member
State in which the shipment or transport of those goods has not been attempted,
or if a taxpayer relocates those goods to another Member State in order to carry
out business activities, except relocation of goods in cases prescribed by law,
c) services rendered for a taxpayer for which the recipient of these services is required
to pay VAT,
d) shipments for which the recipient is required to pay VAT,
e) deliveries in the framework of a special taxation procedure for telecommunication
services, radio and television broadcasting services, and electronically supplied services to people who are non-taxable persons.
i After opting for VAT calculation according to rendered shipments, the taxpayer must
for the first accounting period present all rendered yet uncollected shipments prior to
changes in the VAT calculation method as collected, and is entitled to deduct VAT
calculated in received shipments which were unsettled up until the change in the VAT
calculation method. A taxpayer must, with the application for VAT return for the first
accounting period after opting for VAT calculation according to rendered shipments,
also submit a list of all issued yet uncollected invoices and all invoices received yet
unsettled up until the change in the VAT calculation method.
i
All taxpayers that submit VAT return applications for the last accounting period of
a calendar year must make necessary adjustments and corrections that apply to
that calendar year. If a taxpayer discontinues to do business, he/she is required to
make all necessary adjustments and corrections in their VAT return application for
the last accounting period in which he/she did business up until the termination
date of their business.
The emergence of taxable event and the emergence of the VAT calculation
No.
Taxable event
The emergence of taxable event and the emergence of the VAT statement
DELIVERY OF GOODS AND RENDERING OF SERVICES (VAT liability is expressed in the VAT
report for those taxable periods in which the shipment of goods or services was rendered)
1 delivery of goods and services
Time the goods were delivered and services performed16
2 deliveries of goods and services for which invoi- after the expiration period to which thoces are issued or payments carried out in conti- se invoices or payments refer
nuation
16
Also applied when the taxpayer to account for delivered goods or supplied services incurs a
higher VAT than he owes, or an invoice even though the goods are not delivered nor the services performed, or if the taxable event is created and the invoice was not issued, or if the invoice for the supplied goods or services rendered incurs VAT even though the invoice provider
is not authorized for the same.
57
No.
Taxable event
3
deliveries of goods and services in civil enginee- VAT liability occurs upon expiration of
ring
the taxable period in which a supervisory
authority validated the actual situation
of performed construction work17
4 continuous export of goods for a period longer upon end of each calendar month until
than 1 calendar month in another Member Sta- the delivery process is complete
te, which the taxpayer delivers or relocates in
that Member State for business purposes, with
the exemption from VAT
5 services for which the recipient is required to pay upon end of each calendar year until the
VAT under Article 75 Paragraph 1 Item 6 of the cessation of service providing
Act which are continuously performed for a period longer than one year in which no invoices
were issued or payments made
6 providing goods at disposal in accordance with at the time of giving the goods at dispoa lease or leasing contract or putting goods on sal or the time of the sale
sale with deferred payment18 for which invoices
are continuously issued or payments continuously made
7 deposit receipt
at the time of deposit receipt (recalculated VAT rates apply)19
8 goods were delivered or services rendered but at the time of delivering goods or rendean invoice was not issued
ring services
9 the use of goods which form a part of a at the time of use of these goods
taxpayer’s business property for their private
purposes, or for the private purposes of their
employees, or if they are used for any other purpose except the conduct of the taxpayer’s business, whereby the input tax for these goods or
their parts has been totally or partially deducted
10 services rendered without a consideration by a at the time of rendering services
taxpayer for private purposes, private purposes
of his/her employees, or other non-entrepreneurial purposes
11 retention of goods upon the termination of per- at the time of retaining goods after the
forming business activities in case VAT was de- cessation of performing business activitiducted in whole or part during their acquisition es
17
18
19
If a supervisory authority does not validate the accounting situation, it follows that tax liability
arose in that period when works were rendered at the latest upon expiration of the taxable
period following the period in which the accounting situation was filed. The foregoing does
not apply in the case of tax liability transfer.
The ownership of those goods is acquired no later than upon payment of the last instalment.
VAT liability does not emerge per advance that a taxpayer pays for goods prior to their acquisition within the EU, or if he/she receives an advance before shipping goods within the EU. This
also applies to advances in connection with services for which a recipient is required to pay
VAT and which are rendered by a taxpayer without a head office, place of residence, or habitual residence in the country, as well as services associated with importing or exporting goods
that are exempt from VAT.
58
No.
Taxable event
12 shortage of goods determined by list of goods
13 financial leasing or renting fixed assets (the lessee shall bear the costs of amortization and can
attain the right of ownership over an item)
14 operative leasing or renting (the leasing provider
shall bear the costs of amortization of the property, and the lessee has no option of purchase)
when the lack was determined
upon the expiration of the taxable period
in which the good, that is the subject of
the lease, was delivered
VAT liability arises for the portion of the
rental fee that refers to the taxable period (in the amount of a monthly instalment. If instalments are established
for other periods other than accounting
periods, they are converted to taxable
periods)
ACQUISITION OF GOODS AND USE OF SERVICES WITHIN THE EUROPEAN UNION
No.
1
2
3
Taxable event
Occurrence of
a taxable event
Occurrence of VAT liability
at the time of issuing an
invoice, or no later than
the 15th of the month
following the month in
which the taxable event
originated, if the invoice
was not issued until then
rendering of services to a domestic taxpayer by a at the time of rendering services
foreign taxpayer who has no head office, place
of residence, or habitual residence in the Republic of Croatia
continuous rendering of services for more than after end of upon end of each calena year by a taxpayer who has no head office, each calendar year until the cessation of service providing
place of residence, or habitual residence in the dar year
country (the recipient of domestic services is
required to pay VAT) and for which no invoices
were issued or payments made in that period
acquisition of goods within the EU (import of at the time of
goods from the EU to the country)
acquiring the
goods within
the EU
IMPORT OF GOODS
No.
Taxable event
The emergence of taxable event and the
emergence of the VAT statement
1
2
import of goods from third countries
entry of goods into the EU which are not in free
circulation because they were put in the process
of VAT exemption, temporary import with total
exemption of customs duties, or transit of foreign goods
the imported goods referred to in Item 2 are subject to customs, agricultural taxes, or fees in
accordance with the common EU policy
imported goods are not subject to duties referred to in Item 3
at the time of importation of goods
when goods stop being subject to these procedures
3
4
when the conditions for the calculation
and payment of these duties are met
at the time of liable customs duties
were they stipulated by customs laws
59
TAXABLE BASE
Taxable base for delivering goods and rendering services in the country;
No.
1
2
3
4
5
6
7
Subject of taxation
Taxable base
deliveries of goods and rendering of services the consideration is made up of all that the
in the country done for a consideration by a recipient received from the supplier or that
which he/she is to receive from a customer
taxpayer
or any other person for these deliveries,
including the amounts of subsidies that are
directly linked to the price of the delivered
goods or services
the appropriation of goods which form a part the purchase price of these or similar goof a taxpayer’s business property for their pri- ods; if the price is unknown, then the amovate purposes or for the private purposes of unt of expenses set out at the time of delitheir employees, or if they are used for any very
other purpose except the conduct of the
taxpayer’s business, whereby the input tax for
these goods or their parts has been totally or
partially deducted
retention of goods upon the termination of the purchase price of these or similar goperforming business activities in case VAT was ods; if the price is unknown, then the amodeducted in whole or part during their acqui- unt of expenses set out at the time of delisition – at the time of retaining goods after very
the cessation of performing business activities
the use of goods which form a part of a total cost of rendering services
taxpayer’s business property for their private
purposes, or for the private purposes of their
employees, or if they are used for any other
purpose except the conduct of the taxpayer’s
business, whereby the input tax for theses goods has been totally or partially deducted
services rendered without a consideration by a total cost of rendering services
taxpayer or his employees for private or other
non-entrepreneurial purposes
relocation of goods to another Member State the purchase price of these or similar goods; if the price is unknown, then the amount of expenses set out at the time of relocating goods
the delivery of goods and rendering of servi- the market value of goods and performed
ces without compensation to persons with services if:
whom a taxpayer is in familial and other close a) the consideration is lower than the market value, and the recipient of the shirelationships (personal, financial, legal), inclupment is not entitled to input tax deducding their employees and family members
tion in its entirety
b) the consideration is lower than the market value, and the supplier is not entitled
to input tax deduction in its entirety if it
concerns shipments which are exempt
from VAT
c) the consideration is lower than the market value, and the supplier is not entitled
to input tax deduction in its entirety
60
i
Included in the tax base are tax amounts, customs duties, fees, and similar charges,
except VAT, plus side costs such as commissions, expenses of packaging, transport,
and insurance that the supplier of goods or services charges to the customer or recipient. Not included in the tax base are reductions or discounts for early payments
and discounts which are approved to the customer at the time of delivery, as well as
amounts which the taxpayer charges or receives from a customer as a refund for expenditures paid for in their name and on their account which enter the records as
ephemeral items. The taxpayer must have evidence of the expenditure amount in
connection with ephemeral items and cannot deduct VAT if the same was calculated.
Taxable base for acquisition of goods within the EU:
1. Fee determined based on the same elements for the delivery of goods in the country (see: Taxable base for delivering goods and rendering services in the country)
2. the purchase price of goods (or the like); if the purchase price is unknown, than
the amount of costs determined at the time of delivery, when the following
goods are acquired:
goods used by the armed forces of NATO Member States for their needs or
the needs of supporting civilian staff if these goods were not acquired in accordance with the general rules of taxation in the country and if they did not
qualify for exemption at import
goods, which a taxpayer for the purposes of their business or another person
on their account, shipped or transported into the country from other Member
States in which these goods were produced, extracted, processed, purchased,
or acquired, or to which they were imported by the taxpayer for the taxpayer’s
business needs.
i
Also included in the tax base are excise duties which the acquirer of goods that are
subject to excise duties within the EU is required to pay, or has paid. While acquiring
goods the tax base is correspondingly decreased when, after acquiring the goods
within the EU, the acquirer of the goods gets a refund for the excise duty paid in the
Member State in which the shipment or transport of those goods began.
Taxable base for importing goods into the EU:
1. the customs value determined by customs regulations during import of goods,
and other fees if they are not already included in the customs value:
a) taxes, duties, fees, and other similar charges that are paid outside of the importing Member State, and charges paid upon import, except VAT,
b) secondary costs, such as commissions, expenses of packaging, transport, and
insurance incurred up until the first place of destination20 on the territory of
the importing Member State, as well as those that arise during transport to
another place of destination within the European Union if that other place is
known at the time of the taxable event’s occurrence,
20
First place of destination is the location indicated on the waybill or on any other transport
document based on which the goods are being imported. If such place is not specified in the
document as the first place of destination, the same is deemed to be the place of the first transfer of goods in an importing Member State.
61
2. the value of consideration for the services of repair, treatment or adjustment, and
finishing or processing which were conducted on goods while they were temporarily exported from the European Union and which were, after performing these
services, again imported.
If such a consideration is not calculated, then the tax base is determined according to
the value of the consideration calculated for repair, treatment, adjustment, finishing,
or processing in accordance with customs regulations.
i If elements for determining the tax base are expressed in a foreign currency during
import of goods, the exchange rate is determined in accordance with EU regulations
governing the calculation of customs value.
i
Not included in the taxable base are:
a) price reductions due to a discount for early payment, and
b) discounts on the price and rebates approved and accrued to the customer at
the time of import.
TAX RATES
25% or 13% or 5%.
VAT shall be paid at a rate of 5% on:
a) all kinds of baked bread
i
Bread is deemed to be all types of baked bread (wheat, rye, barley, maize, corn, buckwheat, soy, potato bread) that are sold under the name of white bread, plain bread,
brown bread, rolls and other baker’s products like croissants, pretzels, breakfast rolls,
unleavened round cakes, flat unleavened bread, kaiser rolls, except for all kinds of
cakes, burek and other baker’s products and confectionery.
b) all kinds of milk (from cows, sheep and goats) offered for sale under this name in
liquid state, fresh, pasteurized, homogenized, condensed (apart from soured
milk, yoghurt, kefir, chocolate milk and other milk products), and mother’s milk
substitutes,
c) books with contents that are professional, scientific, artistic, cultural and education, textbooks for elementary, secondary and tertiary education, in all formats,
i
The books are considered to be non-periodical publications that at the same time
have all three of the following characteristics:
1. have a professional, scientific, artistic, cultural and educational content and are not
allowed to have promotional content. Promotional content is considered to be the
one in which the predominant content (more than 50%) is promotional messages,
2. in technical terms, are made in a book form, printed on sheets of paper or volumes
such as a CD, DVD, or in the form of independent sheets,
3. have at least 49 pages (definition by the UNESCO), not counting the cover and title
page, except for children’s books-coloring books, picture books without text, and
62
print notes and inserts for books in the form of independent sheets that can have
less than 49 pages. Children’s books are deemed to be coloring books as well as
picture books without text,
i Books are not deemed to be: telephone directories, price lists, timetables, calendars,
planners, different brochures, catalogs, travel guides, tourist maps, maps, reports on
the business of trading and other societies, commemorative presentation materials in
form of books and other informational material.
i In terms of this item, textbooks are deemed to be teaching resources produced in
conjunction with the appropriate curriculum and program, regardless of the number
of pages (basic books, script, manual, workbook, reading, etc.) printed on paper or
on already specified volumes, which have been approved by the Ministry of Science,
Education and Sports.
i Textbooks and books are deemed to be goods only at the moment when the same as
fully completed and delivered by the Publisher, i.e. in all other deliveries following the
same.
d) medicines issued on prescription and that were approved by the competent authority for medicines and medical products as well as medicines prescribed by the Decision on establishing the reimbursement list by the Croatian Health Insurance Fund
(HZZO)
e) products that are surgically implanted into the human body – implants and other
medical products for making good physical impairment or shortcoming as defined in the Orthopedic and Other Aids Manual Regulations of the Croatian Institute for Health Insurance, with the exception of dental prostheses supplied by
dental technicians and dentists
i
Medical equipment, aids and other devices used to mitigate the treatment of disability only for personal use of the disabled person are also deemed to be products that
are surgically implanted in the human body – implants, according to the List of Products that are surgically implanted in the human body.
No.
Product group name
No.
Product group name
1.
2.
Batteries for implants
Osteosynthesis nails (Kuntscher nail,
Rusch nail, Ender nail, medullary nail,
etc.)
Drains (thoracic, redon, Pundentz, PTC,
etc.)
Electrodes for cardiac stimulators and
other electronic implants
Electronic distributors (baclofen pump,
morphium pump, insulin pump, etc.)
Pacemakers (pacemaker, cardio-converter-defibrillator), nervous system pacemaker (of brain, nerve), sphincter pacemaker, etc.
7.
8.
Vascular, neurosurgical endoclips, etc.
Endoprostheses of joints, breast, blood
vessels, middle ear, testicles, esophageal etc.
Endopatches (endografts), cardiovascular, arterial, peritonei, lyodura,
lyoplant, lyostypt, drainage, etc.
Internal fixators
Silicone implants
Intraocular lenses
Endo tracheal cannula, vascular (arterial and venous) etc.
Pudenz ventricular catheters, subclavia,
ureteral, etc.
3.
4.
5.
6.
9.
10.
11.
12.
13.
14.
63
No.
Product group name
No.
Product group name
15.
16.
17.
18.
Wedges for bones
Osteosynthesis hooks
Cochlear implant
Meshes for hernia, portrusio acetabuli,
prolene, for mandible, hemostatic etc.
Osteosynthesis nuts
Osteosynthesis springs
Open sources of radiation (ruthenium
plates, radioactive implants, etc.)
Osteosynthesis plates
Rings (valvular, endoscopic, osteosynthetic, etc.)
Pudenz system
Artificial sphincter
Stents
27.
28.
29.
30.
Staplers and chargers
Rods and Rails for osteosynthesis
Tubus
Gaskets and tissue expanders (IUD,
bone expanders, jaw, etc.)
Osteosynthesis screws
Valvula (mitral, aortic, Pudenz, etc.)
Wires for sewing, fixation, cerclage,
bonding, ligation, etc.
Dental implants (materials for fillings,
veneers, bridges; pastes for fillings, gutta-percha, radicular pickets, dental
alloys, implants, ceramics, bone restorations, acrylates, gingival membranes
and bandages etc.)
19.
20.
21.
22.
23.
24.
25.
26.
i
31.
32.
33.
34.
Medical equipment, aids and other devices that are used to mitigate the treatment of
disability for personal use of the disabled person are deemed to be other medical products for the replacement of physical defects or deficiency that are placed on the market
under the name from Column 3 – The List of Orthopedic and Other Aids from the Ordinance on Orthopedic and Other Aids of the Croatian Institute for Health Insurance,
and Column 3 – The List of Dental Aids and Orthodontic Devices from the Ordinance
on Dental Health Care from Mandatory Health Insurance, other than dental prostheses
when the same are delivered by dental technicians and dental medicine doctors referred to in Article 39 Paragraph 1 Item e) of the Act, and aids from the List of Orthopedic and Other Aids from the Ordinance on Orthopedic and Other Aids of the Croatian Institute for Health Insurance under the following names: battery, external rear tire,
external front tire, rear air tube, front air tube, full front tire, full rear tire, battery for
electric wheelchair, dark glasses, simple transparent glass, 675A battery, 675SP battery,
312A battery, 230A battery, 13A battery, LR-6 battery, microphone, headset, aid casing, switch, potentiometer, vibrator suspension, microphone suspension, headphones
suspension, cable inside the hearing aid, ear canal, ear hook, amplifier plate, soft membrane, vibrator membrane, upper part of the device, magnet, key button, coil, battery
cover, battery amplifier, volume control, rechargeable battery, battery charger, protective single use backing for bed in various sizes, wigs for women with short fibers, wigs
for women with long fibers, wigs for men and wigs for children.
f) cinema tickets,
g) newspapers by a newspaper publisher that has media status, printed on paper
and published daily, except for those that entirely or for the most part contain ads
or serve for advertising purposes,
i
Newspapers and magazines containing predominantly ads or that serve for advertising purposes are such newspapers and magazines that have more than 50% of advertising or promotional content.
h) scientific and scholarly journals.
64
VAT shall be paid at a rate of 13% on:
a) services of accommodation or accommodation with breakfast, full or half board
in all kinds of commercial hospitality facilities, including accommodation during
the holidays, rental of areas in holiday camps or places designed for camping and
accommodation in nautical tourism facilities,
Accommodation is deemed to be overnight accommodation in all types of commercial hospitality and catering service facilities.
i Full board service consists of accommodation (overnight stay) and three meals (breakfast, lunch and dimmer), andn half board service consists of accommodation (overnight stay) and one of the three meals.
i Commercial hospitality and catering service facilities are deemed to be: hotels, apart
hotels, tourist resorts, tourist apartments, boarding houses, guesthouses, holiday
houses, rooms for rent, suits and studio suites, inns, resorts, hostels, mountain lodges, hunting lodges, Robinson accommodation facilities and nautical tourism vessels
– ships or boats which have been adapted and equipped for longer stay of crew and
tourists on cruises and tours.
i
b) services of preparing food and restaurant services, preparing and serving of nonalcoholic drinks and beverages, wine and beer in such premises,
i
Delivery of prepared or unprepared food and/or beverages without additional service
is not deemed to be such service.
c) newspapers and magazines by a newspaper publisher that has media status, and
newspapers and magazines for which there is no obligation to adopt the media
statute under a special regulation (other than those specified in this section under
item g) for which the tax is paid at the rate of 5%) printed on paper and issued periodically, and other than those that entirely or predominantly contain ads
or serve for promotional purposes,
i
Newspapers and magazines containing predominantly ads or that serve for advertising purposes are such newspapers and magazines that have more than 50% of advertising or promotional content. Magazines by the publisher who has media status
is deemed to be magazines by the publisher for which there is no obligation to adopt
the media statute according to a special regulation.
d) oils and fats for human consumption, of either vegetable or animal origin,
e) baby food and processed grain food for infants and small children,
f) supply of water, with the exception of water marketed in bottles or any other
packaging,
i
Delivery of water is considered to be activity directly related to the delivery of water,
i.e. the performance of water services by the public water supply and public drainage,
or delivery by another vendor or end user.
65
g) white sugar produced from sugar cane or sugar beet,
h) tickets for the concerts.
VAT shall be paid at a rate of 25% on taxable base (the consideration for
the goods supplied or the services rendered) of supplies of all other taxable goods and services that are not taxed at the rate of 5% or 13%.
INPUT TAX
Input tax (the right to VAT deduction) is the amount of VAT that a taxpayer is entitled
to deduct during VAT liability calculations from the amount of VAT which he/she is
required to pay in the Republic of Croatia (the amount of VAT which he/she paid in
the Republic of Croatia or VAT liability stated in the VAT application on the basis of
transferred tax liability in the current taxable period) and refers to:
• taxable shipments of goods or services in the country performed by other taxable persons for the purposes of a taxpayer’s taxable transactions and for
those transactions for which the right of input tax deduction is not excluded
• taxable services rendered to a taxpayer by taxable persons who do not have a
head office in the territory of the EU
• acquisition of goods and services within the EU for the purposes of a taxpayer’s taxable transactions
• import of goods if they were imported for the purpose of conducting a taxpayer’s business.
A taxpayer who is in the VAT system can deduct in the accounting period input tax if:
a) a deduction is not excluded
b) an invoice for goods received or services rendered contains all prescribed information,
If a taxpayer received an invoice for goods received or services rendered up until the
deadline for submitting a VAT return, then he/she has the right to input tax deduction
in the accounting period in which he/she received the goods or rendering of services.
If a taxpayer does not have an invoice for received goods or rendered services up
until the deadline for submitting a VAT return, then he/she may deduct input tax in
the accounting period in which he/she received the invoice.
i For given prepayments input tax can be deducted in the accounting period in which
the advance was paid, and the advance payer has an invoice, regardless of the fact
that the goods were not delivered or services not performed. If an advance payer has
an invoice up until the deadline for submitting a VAT return, then he/she has the right
to input tax deduction in the accounting period in which the advance was paid. If an
advance payer does not have an invoice for the paid advance up until the deadline for
submitting a VAT return, then he/she has the right to input tax deduction in the accounting period in which he/she received the invoice.
i
c) for imported goods he/she has a unique customs declaration on which he/she
is listed as the recipient or importer of goods and on which the amount of
VAT to be paid is shown, or its calculation is made possible, providing that the
goods were imported for conducting the importer’s business activities,
66
i
A business or other activity of a taxpayer begins with preparatory actions taken in
order to commence the conduct of these activities. Input tax contained in received
shipments for the business start may be deducted if the conditions for the deduction
of input tax have been fulfilled. One cannot exercise the right to input tax deduction
which was calculated on received shipments such as privately motivated investment,
preparatory investments and the like that were not received for the purpose of conducting a taxpayer’s business.
d) the calculated VAT that was supposed to be paid on the basis of acquiring the
goods within the European Union, or receiving a taxable supply of goods on
the basis of three-party work, or for services rendered by a taxable person
who does not have a head office, place of residence, or habitual residence in
the country,
e) the amount of VAT liability, as well as all information for calculating VAT on
the acquisition of goods within the European Union that is stated in the VAT
return.
i
A taxpayer who has to pay VAT on the acquisition of goods within the EU is entitled
to an input tax deduction in the accounting period in which VAT liability incurred.
The following taxable persons have the right to input tax deduction in the accounting period in which VAT liability for received shipments incurred:
a) every taxable person whose shipments are performed by a taxpayer who does
not have a head office, place of residence, or habitual residence in the country, whereby a transfer of tax liability incurred,
b) taxpayer who is registered in the Register of VAT Taxable Persons in the Republic of Croatia whenever he/she receives the following shipments:
– construction services (services in connection with construction, maintenance, reconstruction, or removal of buildings, including cleaning and repair services. The same applies to the transfer of staff if the staff performs
construction services),
– deliveries of used materials and materials which in that state cannot be reused, waste, industrial and non-industrial waste, recyclable waste, partially
treated waste, and goods and services stipulated by regulations prescribed
by the Minister of Finance,
– delivery of buildings or parts thereof and the land on which they are located
after first residence or those where more than 2 years elapsed from the date
of first residence, i.e. use, up to the date of next delivery, provided that the
supplier opted for tax, and the buyer has the right to input tax deduction in
its entirety (the right to tax and the right to input tax deduction may be applied at the time of delivery),
c) an enforcement debtor who sold property during the enforcement procedure,
d) taxpayer for the transfer of emission units of greenhouse gases in accordance
with the regulations governing the system of trading emission units of greenhouse gases.
67
A taxpayer cannot deduct input tax:
1. for procurement and rental of vessels intended for leisure, aircraft, passenger cars
and other means of personal transport, including procurement of equipment for
those goods, as well as for the rendered services in connection with these goods,
i
A taxpayer has the right to use input tax in case of:
a) vessels and aircraft with which he/she performs the activity of passenger and goods
transport, or the activity of renting, or if he/she purchases vessels and aircraft for
resale
b) passenger cars and other means of transportation used for driver training, vehicle
testing, road assistance, passenger and goods transport, transport of deceased
persons, renting, or purchase for resale.
2. for procurement of goods and services for the purposes of a representation,
i
A representation is deemed hosting of business partners, gift-giving business partners
with occasional gifts, payment of their expenses for holidays, sports, recreation and
entertainment, expenses for the rental of cars, ships, aircraft, holiday houses, leisure
facilities and the like. Representation shall not be deemed gift giving in worth of up
to HRK 160.00, excluding VAT, in the framework of conducting business, on condition that gifts are given occasionally and not to the same people. Business partners
are deemed persons with whom there is a business relationship or the expectation of
commencing such a relationship.
3. input tax included on invoices for received goods and rendered services that he/
she uses for delivering goods and rendering services exempt from VAT in the
country, and
4. input tax included on invoices for received goods and rendered services that he/
she uses for delivering goods and rendering services abroad which would be exempt from VAT if performed in the country.
The division of the input tax
If a taxable person uses goods and services in the framework of their business activities for delivering goods and rendering services for which input tax deduction is
allowed and for deliveries of goods and services according to which input tax deduction is excluded, then the amount of income tax should be divided in a part that can
be deducted, and in a part that cannot be deducted.
i
The division of input tax shall be established when a taxpayer cannot on the basis of
accounting and other documentation directly determine the amount of input tax
which applies to supplies of goods and services for which input tax deduction is allowed.
The amount of input tax which applies to shipments of goods and services for which
deduction is allowed, and which cannot be directly attributed to these shipments
based on accounting and other documentation, shall be determined on an annual
basis as a percentage obtained by putting in relationship the total shipment without
68
VAT for which deduction is allowed and the total amount of shipment without VAT,
increased by the total amount of shipments for which an input tax deduction is not
allowed.
The following amounts are not taken into account in calculations:
a) value of shipped business goods that a taxpayer used for conducting their business
activities,
b) value of shipments related to occasional deliveries of real estate,
c) value of shipments related to occasional financial transactions.
i On an exceptional basis, a taxpayer may determine the part of input tax that he/she
can deduct for each part of their business separately, provided that he/she keeps
separate books and notifies the Tax Administration beforehand.
i
A taxpayer is required to determine the percentage for calculating the right to deduct a part of the input tax, and for the last accounting period of the calendar year
to perform adjustments for the calendar year in which he/she applied the division of
the input tax. A taxpayer who, in the framework of their entrepreneurial activities,
performs shipments of goods and services for which input tax deduction is allowed,
and shipments for which input tax deduction is excluded and, on the basis of that
calculation, establishes the right to input tax deduction in the amount of 98%, is not
required to apply the division of the input tax during deduction of input tax for purchased goods and services.
EXEMPTIONS
A taxpayer who ships goods or renders services that are exempt from VAT must indicate on the invoice only the total fee amount and specify that VAT was not calculated, indicating the article of the VAT Act which prescribes the exemption.
Value added tax exemptions shall encompass the following supplies of
public interest:
a) supply of universal postal services and the supply of goods related thereto,
b) medical diagnostics in hospitals, treatment and medical care, supplied on the
basis of public authority, in accordance with regulations pertaining to health care
in health institutions: health centers, urgent care centers, polyclinics, general and
specialized hospitals and clinics, health institutions providing medical care at
home, entities with public authority or other organizations similar in nature,
i
Not exempt from VAT liability are:
– services that are not associated with treatment and health care, in particular rental
and use of space within hospitals, health centers, spas and similar institutions, various additional payments for accommodation or use of TV, phone, and the Internet,
additional laundry and parking services as part of hospitals, spas and similar institutions, sports and recreational services as part of spas such as bike hire, use of swimming pool or sports facilities and the like,
– services which are not performed for the purpose of health care such as health examinations in connection with determining ability to hold and carry weapons, med-
69
ical examinations in connection with ability to manage motor vehicles, expert opinions for judicial and other procedures such as a paternity tests, various services in
connection with analysis of soil, water, articles for general use, services of testing air
quality, training of health care and other workers, and other similar services of institutions that perform public health activities.
c) supply of services and goods by medical doctors, dentists, nurses, midwives,
physical therapists and psychologists, and services of biochemical laboratories
related to medical care, which are supplied within private practise,
d) supply of human organs, blood and mother’s milk,
e) services rendered by dental technicians in their professional capacity and the supply of dental prostheses by dental technicians and dentists,
f) services rendered to its members by groups of persons whose activities are exempt from VAT or who are not VAT taxpayers, when these services are intended
directly for professional activity, on the condition that these groups merely claim
exact reimbursement of their share of joint expenses from their members, provided that such exemption does not lead to an impairment of the principle of
market competition,
g) supply of services and goods related to social welfare, including those rendered
by hospice centers, institutions, entities with public authority or other entities
similar in nature,
h) supply of services and goods related to the protection of children and youth rendered by institutions, entities with public authority, or other entities similar in
nature,
i) education of children and youth, primary, secondary or higher education, vocational training or retraining of adults, including thereto closely related services
and goods provided by entities with public authority or other entities which have
similar goals, that are related to curriculums prescribed by competent ministries,
VAT is not liable for the services of mediation in the employment of students and
pupils and the organization of student meals and student accommodation. Exempt
from VAT are shipments of goods that are directly related to the rendering of services,
such as student accommodation and meals in student homes, dormitories, and the
like. Exempt from VAT are deliveries of meals in connection with pre-school and primary education performed by institutions linked to social welfare, protection of children and youth, education of children and youth, pre-school, secondary and higher
education institutions, and institutions for the standard of pupils and students, under
the condition that the fee is not greater than the total cost of the completed delivery.
i Tax exemption does not apply to services of summer accommodation for pupils and
students in student homes and dormitories, i.e. accommodation of persons who are
not pupils or students.
i
j) tuition provided privately by teachers, encompassing education in preschool, primary, secondary or higher education institutions, if tuition in these institutions is
performed by physical persons (teachers of lecturers) in accordance with the
agreed timetable/schedule, exclusively according to plans and curriculums veri-
70
fied by the Ministry of Science, Education and Sports. The exemption also applies
to the maintenance fee of holding exams and consultations tightly related to the
execution of the agreed teaching plan and curriculum,
k) engagement of staff by religious or spiritual institutions for the purposes defined
by items b), g), h) and i) the goal of which is spiritual welfare,
l) supply of services and goods closely related thereto, by non-profit organizations
with aims of religious, patriotic, philosophical, philanthropic or other civic nature for
the benefit of their members, in return for a subscription fixed in accordance with
their rules, provided that this exemption does not lead to distortion of competition,
i
Exempt from VAT are services that non-profit organizations whose goals are religious,
patriotic, philosophical, charitable or of other beneficial nature performed for its
members in accordance with statutes or other rules of these organizations. The exemption applies regardless of whether these members pay a membership fee to the
organization in accordance with rules of these organizations or if their activities are
based on donations and voluntary contributions. The exemption also applies to supplies of goods, provided that the deliveries of these goods are closely associated with
rendered services or are an integral part of these services.
m) services closely related to sports or physical education rendered by non-profit legal entities to professional or amateur sportsmen or persons who participate in
physical education,
n) services in the framework of culture and closely related supplies of goods carried
out by institutions in the framework of culture, bodies vested with public authorities or other legal entities in the framework of culture,
o) supply of services and goods by organizations whose activities qualify for the
exemption, based on provisions of items b), g), h), i), l), m) and n) in connection
to fund-raising events organized exclusively for their own benefit, provided that
this exemption does not lead to distortion of competition,
p) transport services for sick or injured persons in emergencies or sick persons in
connection with medical care by authorized persons in vehicles specially designed
for this purpose,
p) subscription for carrying out activities of public radio and television, with the
exception of commercial activities.
VAT exemption does not apply to supplies of goods or services from items b), g), h),
i), l), m) and n) if these shipments are not necessary for shipments exempt from VAT,
and if their primary purpose is achieving additional income by performing deliveries
which directly compete with shipments of taxpayers who calculated VAT.
i Exempt from VAT are supplies of goods or services from items b), g), h), i), l), m) and
n) if performed by persons who were not conveyed public authorities, provided that
they do not intend to make profit, and if they do make profit it should not be distributed, but rather used for the continuation or improvement of performing services.
i
Note: Exempt from VAT are deliveries of goods used by a taxpayer exclusively for the
listed activities exempt from VAT, as well as deliveries of goods for whose acquisition,
purchase, or use the deduction of input tax was not possible.
71
The following shall be also exempt from payment of VAT:
a) insurance and reinsurance transactions, including related services rendered by
insurance brokers and insurance agents,
i
Assessment of damages is not deemed a service exempt from VAT liability.
b) granting of loans and credits, including intermediation in these activities, and
managing loans and credits when done by the person who grants them,
Services of collecting data, analyzing, and providing information about a user’s creditworthiness that are not related to granting and managing of loans or contracting
and issuing guarantees or other credit guarantees are not exempt from VAT.
i A taxpayer has the right to tax if he/she occasionally grants loans for the deliveries of
their goods and services.
i
c) contracting of credit guarantees and all other jobs related to credit guarantees or
other insurance money and the management of credit guarantees when performed by the person who approves the loan,
i
The sale of acquired assets after the mortgage payment is not deemed a delivery exempt from VAT.
d) transactions, including mediation, concerning savings and current accounts, payments, transfers, debts, cheques, and other transferable securities, except debt
collection,
A service fees for payment collection, early payment, discount, or other expenses that
a taxpayer-transferee of a debt (factoring) charges is subject to VAT.
i Rental and maintenance of terminals and other devices for the processing of credit
card payments, setup and maintenance of ATMs, keeping and storage of funds and
rental of safe deposit boxes, protected areas and locations is subject to VAT.
i
e) transactions, including mediation, concerning currency, banknotes and coins
used as legal tenders, with the exception of collectors’ items, gold, silver or other
metal coins or banknotes which are not normally used as legal tenders or coins
of numismatic value,
When coins and banknotes are bought or sold at a value higher than their face value,
then these deliveries shall be subject to VAT liability.
i Transactions related to collector’s items, i.e. gold, silver, or other metal coins and
banknotes that are not normally used as legal tenders, or coins of numismatic value,
are subject to VAT liability.
i Services related to receiving, processing, sorting, replacing damaged banknotes or
coins, and issuing and supplying cash are exempt from VAT, except delivery and courier services and safe transport.
i
72
f) transactions, including mediation, except management and safekeeping, in connection with stocks, shares in trading companies or associations, bonds and
other securities, with the exception of documents that establish a right over
goods and rights or securities which determine specific rights on real estate,
Investment counseling and portfolio management of securities and other financial instruments and their storage and safekeeping are not deemed cleared
transactions; neither are administrative jobs, legal, accounting, bookkeeping
and auditing services, services related to legality of business, identity verification, investigations regarding money laundering and tax evasion, services of
collecting data for the purpose of recycling banknotes and coins, marketing,
research, design and development of new products, as well as design and
software services.
g) management of special investment funds,
i
External oversight of a fund, promotion and management of general fund expenses,
and the development of a system such as planning and application of new technologies, significant enhancements of existing systems and system maintenance, and services related to the legality of business operations are not deemed management services.
h) supply of postage stamps at face value, for domestic postal services use, and of
fiscal stamps and other similar stamps,
i) lottery and casino games, betting and slot machine games,
j) delivery of buildings or parts thereof and the land on which they are located, except
deliveries prior to first residence i.e. use, or those where no more than 2 years
elapsed from the date of first residence, i.e. use, up to the date of next delivery,
i
i
A building is deemed an object fastened to the ground or fastened in the ground.
Delivery of buildings or parts thereof and the land on which they are located prior to
first residence or use, or delivery whereby no more than 2 years elapsed from the date
of first residence, i.e. use, up to the date of next delivery is also deemed to be the
delivery of reconstructed buildings or parts thereof and the land on which they are
located if reconstruction costs in the preceding 2 years prior to delivery were 50 %
higher than the retail price.
First residence, i.e, use, is deemed to be the moment of putting the real estate
into use, of which a taxpayer must have appropriate documentation (document of the competent authority of the place of residence or habitual residence, bookkeeping records whereby the building or parts thereof are put
into use, or a rental contract, a contract on the delivery of electricity, water,
and the like. If first residence, i.e use, cannot be proven with a either of the
above-mentioned documents, the date of first residence or use is deemed to
be the first delivery date).
73
Building reconstruction is deemed to be the performance of construction and
other work on the existing building whereby the building is changed in relation to the condition it was is in prior to reconstruction, such as remodeling,
upgrading, removing the outer part of the building, execution of works to
change the building’s purpose and the like, i.e. doing construction and other
work on the wreckage of the existing building for the purpose of its renewal.
k) delivery of land, except building plot,
Building plot is deemed to be the plot for which an executive act was issued
which authorizes the construction (building permit, location permit, construction resolution and the like).
l) renting residential premises.
All accompanying services and shipments of goods in connection with leasing the
apartment for housing, which are included in the amount of compensation for renting an apartment, such as the delivery of water, electricity, gas, heating, and refuse
disposal, are exempt from VAT.
i Rental of furnished or unfurnished rooms and residential premises for occasional
housing, without the intention of permanent living, for tourist purposes (occasional
guests) and business purposes (representatives of companies and the like) is not exempt from VAT.
i
Note: Exempt from VAT are shipments of goods that a taxpayer used exclusively for
the activities listed, as well as shipments of goods for whose acquisition, purchase,
or use an input tax deduction was not possible.
A taxpayer who occasionally grants loans and credits relating to shipping of
goods and services has the right to tax.
A taxpayer has the right to tax shipments stated in items j) and k), provided
that the buyer is a taxable person who has the right to deduct input tax in its
entirety. The right to tax and the right to input tax may be applied at the time
of delivery.
Exemptions for transactions within the EU:
Exempt from VAT are:
a) shipments of goods which the seller, buyer, or another person for their account ships or transfers from the country to another Member State to a customer who is a taxable person, or a legal entity that is not a taxpayer, and who
act as such in that Member State,
i
This exemption does not apply to shipments of goods by a small taxpayer, and on
shipments of goods performed for a taxpayer liable to VAT and a legal entity that is
not a taxable person whose acquisition of goods within the EU is not subject to VAT.
74
b) shipments of new means of transport which the seller, buyer, or another person on their behalf ships or transports from the country to another Member
State to a taxpayer or legal entity that is not a taxpayer, and whose acquisition
of goods within the EU is not subject to VAT, or to any other person who is
not a taxpayer,
c) shipments of goods which are subject to excise duties that a seller, buyer, or
another person on their behalf ships or transports from the country to another Member State to a taxpayer or legal entity that is not a taxpayer whose
acquisition of goods within the EU, with the exception of goods which are
subject to excise duties, is not subject to VAT, if these goods are shipped or
transported in accordance with the regulations governing excise duties,
Exemption under c) shall not apply to shipments of goods by a small taxpayer which
are subject to excise duties.
i Exemption under items a), c), and d) shall not apply to shipments of goods to which
a special procedure of margin taxation on used goods, works of art, collectors’ items
or antiques applies, or a special procedure for sale by public auction.
i
d) shipments of goods which are relocated to another Member State for which
the right to exemption would apply according to items a), b), and c) had they
been performed for another taxable person.
The acquisition of goods within the EU is exempt from VAT:
1. if the shipment of those goods which a taxpayer performs in the country was
exempt from VAT,
2. if the import of those goods would be exempt from VAT,
3. in case the acquirer is entitled to a full refund of the amount of VAT which he/she
is required to pay by way of VAT refund to foreign taxpayers.
Transport services exempt from VAT
1. international passenger transport services other than road and rail transport, and
2. transport services within the European Union for shipment of goods to and from
islands that make up autonomous regions Azores and Madeira, and transport of
goods between those islands.
Exemptions at import:
1. final import of goods performed by a taxpayer whose shipment would in any
case be exempt from VAT in the Republic of Croatia,
2. import of goods of non-commercial nature in a passenger’s personal luggage,
3. import of personal property imported in the Republic of Croatia by physical persons
who prior to this resided outside of the European Union for at least 12 months,
i
This exemption does not apply to alcohol and alcoholic beverages and tobacco products, commercial means of transport, and goods used for performing business activities or occupations.
75
4. import of goods belonging to persons who prior to this resided outside of the
European Union for at least 12 months, and who are moving into the Republic
of Croatia in order to get married,
i
This exemption does not apply to alcohol and alcoholic beverages and tobacco products.
5. import of personal property which Croatian and foreign citizens with a habitual
residence in the Republic of Croatia inherited outside of the European Union,
i
This exemption does not apply to alcohol and alcoholic beverages, tobacco products,
commercial means of transport, goods used for performing business activities or occupations, stocks of raw materials and finished products or semi-finished products,
livestock and stocks of agricultural products in quantities that exceed normal family
needs.
6. importation of tools and instruments carried by pupils and students for personal
use and for the purpose of schooling in the Republic of Croatia, in accordance
with customs regulations,
7. importation of consignments from abroad contained in small shipments,
i
The exemption shall not apply to alcohol and alcoholic beverages, tobacco and tobacco products, tea, perfumes and eau de toilette.
8. goods encompassed by business assets imported for the purpose of continuing
an interrupted economic activity, by natural persons moving into the Republic of
Croatia from abroad, in accordance with customs regulations
i
The exemption does not apply to means of transport, shipping for human consumption or animal feed, fuel, supplies of raw materials, finished or semi-finished products, and livestock owned by traders.
9. importation of agricultural products, crops, stock farming, forestry, fishery and
beekeeping products, obtained on farms located on cross-border territory in a
neighboring country, in possession of nationals of the Republic of Croatia living
in the cross-border territory with the country that is not part of the EU, as well as
seeds, fertilizers and products for farming and processing of products from those
farms and importation of breeding cattle and other products derived from cattle
owned on the farms for the purpose of agricultural works, pasture or wintering,
in accordance with customs regulations,
10. importation of therapeutic substances of human origin and reagents for blood
type determination and categorization of tissues used for non-commercial purposes, samples of reference substances for the control of medical products, including laboratory animals particularly cultivated to be used for scientific tests,
drugs and medical products for the approved clinical, laboratory, pharmacological and toxicological tests, and importation of pharmaceutical products of hu-
76
man veterinary medicine for human and animal use in sport events, in accordance with customs regulations,
11. importation of goods specially produced and adapted for personal use, education, cultural, social, professional and any other kind of rehabilitation of the blind
and persons with serious vision problems, deaf, dialyzed, mentally or physically
handicapped persons, when imported by institutions or organizations registered
for providing care and rehabilitation to such persons, in accordance with customs regulations,
12. importation of goods obtained free of charge for the fulfilment of basic human
needs such as food, drugs, clothes, shoes, bedding, hygienic items and alike,
imported by public institutions and other registered humanitarian and charitable
organizations and institutions for the purpose of donation to the socially endangered persons. Tax exemptions shall apply to imports of equipment donated from
outside the EU to the above-mentioned organizations and institutions for the
purpose of their operation and achievement of their humanitarian goals. Tax exemption shall be exercised in accordance with customs regulations.
i
The exemption shall not apply to alcohol and alcoholic beverages, tobacco and tobacco products, coffee and tea, and to motor vehicles with the exception of ambulances.
13. imports of medals and rewards received at international events and gifts received
as part of international relationships, goods used by presidents of states or their
representatives on the occasions of visits to the Republic of Croatia.
14. importation of samples of insignificant value used only for the purpose of ordering identical goods, and unusable for any other purpose, in accordance with
customs regulations,
15. importation of printed and promotional material sent by persons with their seat
outside of the territory of the EU, in accordance with customs regulations,
16. importation of goods used or consumed at fairs, exhibitions and similar events,
in accordance with customs regulations.
i
The exemption shall not apply to alcohol and alcoholic beverages, tobacco and tobacco products, crude, liquid and gaseous fuels.
17. importation of goods intended for inspection, tests and analyses, in order to
determine their composition, quality or other technical characteristics for the
purpose of gathering information or industrial and commercial research, and
that are completely destroyed in those processes, in accordance with customs
regulations,
i
Exemption is not applied for goods used in trials, analyses, or testing which are
deemed promotional activities.
18. importation of seals, trademarks, patents, models, designs and supporting documentation, forms for the acknowledgment of innovations, patents and alike,
77
19.
20.
21.
22.
23.
24.
25.
26.
submitted to competent authorities for the protection of royalties or industrial
and commercial rights, in accordance with customs regulations,
importation of materials for tourist information that does not contain more than
25% of commercial ads, and that are disseminated free of charge with the aim
of presenting a foreign tourist offer, in accordance with customs regulations,
importation of documents, forms and data media,
importation of auxiliary material for protection of goods during transportation
on the territory of the Republic of Croatia, such as rope, straw, cloth, paper,
cardboard, wood and plastics, under certain conditions, and goods used for
care of live animals during transportation,
importation of fuels and lubricants contained in the tanks fitted by the manufacturer to road motor vehicles and special containers, in accordance with customs
regulations,
importation of caskets with deceased persons, urns with the cremated ashes of
deceased persons, flowers, wreaths and other common funeral decoration items
and goods imported by organizations with the authorization of the competent
authorities, and which are intended for the construction, maintenance or adornment of cemeteries and monuments to the victims of war from a third country
that are buried in the European Union,
importation of goods contained in supplies free of charge made by natural persons from abroad to natural persons in the Republic of Croatia, provided that
these supplies have no commercial value and conform to the prescribed type,
quantity and value, in accordance with customs regulations,
import of goods listed in Items 2 through 23 from third territories,
import of goods shipped or transported from third territories or a third country
into the Republic of Croatia if the importer, or a person designated as a tax
debtor, when importing these goods directly after their import ships them within the European Union with VAT exemption for supplies of goods within the
European Union,
VAT exemption shall be applied when shipment of goods follows their import
whereby it is exempt from VAT only if the importer at the time of import provided the customs authorities with at least the following information:
a) their VAT identification number issued in the Republic of Croatia or a VAT
identification number of their tax representative, who is liable for the payment of VAT, issued in the Republic of Croatia,
b) VAT identification number of the acquirer issued in another Member State
to whom goods are delivered (delivery of goods which the seller, buyer, or
another person for their account ships or transfers from the country to
another Member State to a customer who is a taxable person, or a legal
entity that is not a taxpayer, and who act as such in that Member State) or
their own VAT identification number issued in the country where the
transport or shipment of goods ends if the goods are being moved to
another Member State,
78
c) evidence from which it is visible that the imported goods are intended for
transport or shipping from the Republic of Croatia into another Member
State.
27. re-importation of goods made by the person, who exported them, in the condition in which they were exported, if those goods are exempt from customs duties
liability,
28. import of goods on the basis of diplomatic and consular agreements, if they are
exempt from customs duties liability,
29. import of goods made by the European Union, the European Atomic Energy
Community, the European Central Bank, or the European Investment Bank or
organizations established by the European Union, and to which apply laws and
liberations of the Protocol on the privileges and immunities of the European Union in the framework of and under conditions set out in that Protocol and the
Agreement between the Republic of Croatia and the European Union on the
implementation of the Protocol on the privileges and immunities of the European
Union in the Republic of Croatia or in the agreements on headquarters of these
organizations, provided that this does not lead to the distortion of principles regarding market competition,
30. importations of goods by international organizations recognized as such by the
Republic of Croatia or by members of such organizations, within the limits and as
stipulated by international conventions pertaining to the incorporation of such
organizations or based on headquarters agreements,
31. importations of goods by the armed forces of other countries, members of the
NATO Treaty, for the needs of these forces or the accompanying civilian staff or
for supplying their cafeterias or canteens, if such forces take part in the common
defense activities,
32. importation of unprocessed or processed catch, undelivered, by sea fishing enterprises engaged in maritime fishing,
33. importation of gold by the Croatian National Bank,
34. the import of gas through a natural gas system or any network connected to
such a system or gas pumped from vessels for transporting gas into a natural gas
system or a production pipeline network, import of electricity, heating or cooling
through a heating or cooling system,
35. supplies of services, relating to the importation of goods where the value of such
services is included in the tax basis,
36. temporary importation of goods, exempt from customs duties according to the
international convention on temporary importation and customs regulations,
37. services which are directly related to the import of goods for which the Customs
Administration approved temporary import in the country if the recipient of the
services is from abroad,
The foregoing does not apply to services in connection with means of transport, pallets, and containers.
79
38. goods in transit through the customs territory of the Republic of Croatia including the services of transport and other dispatch services.
Tax exemptions on exportation:
The following shall be exempt from value added tax payment:
1. shipments of goods and refined goods shipped or transported from the Republic
of Croatia outside of the EU by a supplier, or any other person for his account,
2. shipments of goods, except shipments of fuel and equipping goods and
goods for supply of any means of transport used for private purposes, which
are shipped or transported from the Republic of Croatia outside of the EU
personally by a buyer who does not have a head office in the Republic of
Croatia, or some other person for his account,
i
If shipments of goods refer to goods carried in personal baggage by passengers, the
exemption applies exclusively in the following conditions:
a) if a traveler’s domicile or usual residence is not in the EU,
b) if the total value of supply, including value added tax, exceeds HRK 740.00,
c) if the goods are transported outside of the EU prior to the expiry of the three
month period, and
d) if proof of exportation exists, and the invoice and form were endorsed by the customs office where goods were exported from the EU. At the request of a customer who does not have a place of residence or habitual residence in the territory of the EU, the seller shall issue the form PDV-P (filled in 3 copies, of which the
original is given to the customer, one copy is entered in the seller’s documentation,
and one copy remains for the Customs Administration).
For shipments from Item 2, the supplier of goods is liable to VAT exemption
when he/she receives proof of export, and the taxpayer may correct the completed taxation of exported goods during the accounting period in which the
proof of export was received.
i
VAT exemption is not applied to oil derivatives.
3. shipments of goods to authorized bodies that export them outside the EU, in
the framework of their humanitarian, charitable or educational activities performed by them outside of the EU, provided that the exemption is realized via
the request for VAT refund,
4. rendered services, including transport and related ancillary services, except
services which are exempt from VAT for certain activities in the public interest
and for other activities without the right to input tax deduction, if they are
directly linked to export or import of goods where the goods were put into
free circulation, as well as in connection with their entry in a tax warehouse in
the Republic of Croatia.
80
Exemptions for services rendered on movable assets:
Exempt from VAT is the rendering of services on movable assets acquired or imported for the purpose of performing those services in the Republic of Croatia, which
is shipped or transported from the European Union by the service provider or user
that does not have a head office, permanent business unit, place of residence, or
habitual residence in the Republic of Croatia, or a third person for their account.
Required for the application of exemption is documentation in accordance
with customs regulations.
Tax exemptions concerning the international transport:
a) supply of goods for the provisioning of vessels, except the supply of fuel, used for
navigation on the high seas and for carrying passengers for a consideration or
used for the purpose of commercial and industrial activities and of vessels used
for rescue or assistance at sea,
b) supply of fuel and goods for supplying warships, as defined in the Combined
nomenclature (KN) under tariff code 8906 10 00, leaving the Republic of Croatia
and bound for foreign ports or anchorages,
c) supply, modification, repair and maintenance of the vessels referred to in item (a)
of this paragraph, and the supply, hiring, repair and maintenance of equipment
incorporated or used therein,
d) rendering services other than those indicated item c), to meet direct needs of
vessels referred to in item a) or their cargo,
i
Services are deemed port fees, services of schlepping, piloting, and tying of ships,
services relating to boarding, disembarkation, transshipment, and storage of a ship’s
cargo in ports, then airport, warehouse, and agency services for vessels and their
cargo, refuse disposal, laundry services, issuing of certificates for ships, and the like.
e) supply, modification, repair, maintenance, chartering and hiring of aircraft used by
airlines operating for a consideration, mainly on international routes, and the supply, hiring, repair and maintenance of equipment incorporated or used therein,
f) supply of fuel and goods for the supply of aircraft referred to in item e),
g) rendering services other than those indicated in item e), to meet the direct needs
of aircraft referred to in item e) or their cargo
i
Services used directly for the needs of vessels or their cargo are deemed services associated with luggage (handling, sorting, loading, unloading, transportation to and
from the aircraft to the baggage sorting area and vice versa, etc.), services of accepting and dispatching cargo and mail (physical handling of inbound and outbound
mail and cargo, handling of cargo and mail documents, and the like), services of accepting and dispatching of aircraft (guidance, performance, parking, heating, cooling, loading and unloading of the aircraft, transport, loading and unloading of food
and beverages, transportation of the crew and passengers between aircraft and the
terminal, and the like), route and terminal services (services of landing, takeoff, and
flyovers), services of flight operations, and other similar services.
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Tax exemptions for the supply of goods and services equivalent to export:
The following shall be exempt from value added tax payment:
a) supply of goods and services under diplomatic and consular arrangements,
subject to the reciprocity principle,
i
Exemption from VAT and excise duties upon import shall be exercised directly upon
the import of motor vehicles and goods for official purposes of diplomatic and consular representative offices and special missions based in the Republic of Croatia and
international organizations, namely the representative offices of international organizations, which, as such, recognize the Republic of Croatia in the framework of their
activities, and for personal purposes of foreign diplomatic and consular personnel of
these representative offices and special missions as well as for personal purposes of
foreign personnel of these international organizations.
b) shipments of goods and performance of services to the European Union, the
European Atomic Energy Community, the European Central Bank, or the European Investment Bank or organizations established by the European Union
to which the Protocol on the Privileges and Immunities of the European Union
applies in the framework of and under conditions set out in that Protocol and
the Agreement between the Republic of Croatia and the European Union on
the implementation of the Protocol on the Privileges and Immunities of the
European Union in the Republic of Croatia or in the agreements on headquarters of these organizations, provided that this does not lead to the distortion
of principles regarding market competition,
c) supply of goods and services to international organizations recognized as
such by the Republic of Croatia or to members of such organizations, within
the limits and on conditions stipulated by international conventions pertaining to the in-corporation of such organizations or based on headquarters
agreements,
d) supply of goods and services to the armed forces of other countries members
of the NATO Treaty, for the needs of these forces or the accompanying civilian
staff or for supplying their cafeterias or canteens, if such forces take part in
the common defense effort.
e) shipments of goods or rendering of services into another Member State, intended for the needs of the armed forces of any Member States of the NATO
Alliance, except the destination Member State, for the purposes of these forces or their civilian staff who accompany them, or for supplying their cafeterias
and canteens when these forces participate in joint defensive activities,
f) shipments of gold to central banks.
Exemptions for mediation services:
Exempt from VAT liability are mediation services performed in the name and for the
account of another person for:
a) export shipments (see Exemptions at export),
b) actions for performing certain services on movable assets (see Exemptions for
performing services on movable assets),
82
c) shipments in connection with international transportation and shipments
equalized with export (see Exemptions in connection with international transport and exemptions for specific shipments equalized with export),
d) transactions carried out outside of the European Union.
Exemption for mediation services does not apply to travel agencies that in the
name and for the account of the passenger perform services in other Member
States.
Exemptions for transactions relating to international trade:
VAT exemptions for shipments of goods (under identical conditions also applies to
the acquisition of goods within the European Union):
a) shipments of goods intended for a customs house and temporary accommodation,
b) shipments of goods which are in accordance with the customs regulations
imported and placed in a free zone or a free warehouse,
c) shipments of goods which are in accordance with the customs regulations
placed in the procedure of customs warehousing or internal production procedure.
i
Exempt from VAT are supplies of goods and renderings of services on those goods in
the above listed locations so long as the enumerated actions apply to them, as well
as services connected with these shipments.
VAT exemptions for import and shipments of goods into a tax warehouse:
a) exempt from VAT payment is the import of goods from Annex II of the VAT
Act, import of goods which are subject to excise duties according to regulations governing excise duties and import of goods that are subject to a special
tax on coffee and non-alcoholic beverages, if placed in a tax warehouse in the
Republic of Croatia,
b) Exempt from VAT payment is the import of goods from Annex II of the VAT
Act, shipment of goods which are subject to excise duties according to regulations governing excise duties and the shipment of goods which are subject
to a special tax on coffee and non-alcoholic beverages, into tax warehouses
and within them, as well as services performed on those goods, so long as the
procedure of tax warehousing is applied to them.
A tax warehouse for goods that are subject to excise duties according to
regulations governing excise duties, and goods which are subject to a special
tax on coffee and non-alcoholic beverages, is deemed a place designated as
excisable, i.e. an excise warehouse in accordance with special regulations.
83
Exempt from VAT is the import of goods and delivery of all goods that are
stored in a tax warehouse:
if the goods are intended for stores exempt from VAT in airport or maritime ports,
for shipments of goods exported in personal luggage of passengers travelling on
aircraft or ships to third territories or countries, if such a shipment is exempt from
VAT (shipments of goods, except shipments of fuel and equipping goods and
goods for supply of any means of transport used for private purposes, which are
shipped or transported from the Republic of Croatia outside of the EU by a buyer
who does not have a head office in the Republic of Croatia, or some other person
for personal account),
if the goods are intended to VAT taxable persons for shipping to passengers in
aircraft or ships during flight or voyage, provided that the destination of travel is
outside of the EU,
if the goods are intended to VAT taxable persons for performing shipments exempt from VAT (see Exemptions for specific shipments equalized with export –
items a), b), c), d) and e).
The listed VAT exemptions apply to exemptions for transactions in international trade if goods and services are not intended for final consumption and
if the amount of VAT that should be paid after the termination of application
of these procedures corresponds to the amount of VAT to be paid if on each
of these transactions VAT was calculated in the Republic of Croatia.
Import of goods from third territories:
On the import of goods into the Republic of Croatia from third territories, which is
in accordance with customs regulations a part of the customs territory of the EU,
special proceedings apply in accordance with customs regulations about importing
goods into the territory of the EU, more specifically:
if shipment or transport of goods from a third territory ends in a location that
is, at the time of their entry into the EU, outside of a Member State, those
goods are transported within the EU in accordance with customs regulations
of the EU transit procedure for domestic goods (if they were at import reported for that procedure).
if one of customs procedures started for those goods at the time of their entry
into the EU, VAT exemption and the exemption in the procedure of temporary
importation is also applied to those goods.
Export of goods to third territories:
For export of goods which are in free circulation that are shipped or transported
from the Republic of Croatia to a third territory, which is part of the customs territory of the EU, procedures in accordance with customs regulations on the export of
goods from customs territories of the EU are applied.
84
i
For goods that are temporarily exported for re-import into the Republic of Croatia the
same provisions, which would apply to those goods were they temporarily exported
from the customs territory of the EU, apply.
Tax exemptions regarding the participation of the Republic of Croatia in
aid programs of the European Union:
Tax exemptions regarding calculation and payment of VAT on considerations for
delivered goods and services, and acquisition of goods are both awarded on the
basis of the Framework Agreement between the European Commission and the Government of the Republic of Croatia regarding the participation of the Republic of
Croatia in aid programs of the European Community, and for projects financed by
aid of the European Community on the basis of the Framework Agreement between
the Government of the Republic of Croatia and the Commission of the European
Community on rules for cooperation regarding financial aid of the European Community for the Republic of Croatia in the implementation of aid in the framework of
the Instrument for Pre-Accession Assistance (IPA) and other programs which are financed from funds of the European Union regarding aid for the Republic of Croatia.
i
The previously mentioned applies to all procurement procedures that an implementing body (implementing agency) initiated up until 30 June 2013 and to all procurement procedures carried out by the beneficiary of the project based on the main
contract concluded with the implementing body.
Tax exemptions for diplomatic and consular offices, institutions, and bodies of the European Union and international organizations:
1. Tax exemption at import
• Tax exemption at import, except import of motor vehicles, is exercised directly upon import of goods for official purposes of diplomatic and consular
representative offices, institutions, and bodies of the EU and international
organizations (the person referred to in Paragraph 1 Item 1 of the Ordinance
on the Procedure of Tax Exemption for Diplomatic and Consular Offices, Institutions, and Bodies of the European Union and International Organizations
– hereinafter: the Ordinance) via direct exemption verification issued by the
Ministry of Foreign and European Affairs on the Form IOU
• Tax exemption on import of motor vehicles is exercised directly at import for
official and personal purposes of the persons referred to in Paragraph 1 Item
1 of the Ordinance based on the verification document from the Ministry of
Foreign and European Affairs on the Form IOMV
2. Tax exemption for diplomatic and consular offices and for international organizations with a head or representative office in the Republic of Croatia
2.1 Direct exemption on deliveries in the Republic of Croatia

Direct tax exemption on supplies of goods for diplomatic and consular
offices and special missions based in the Republic of Croatia as well as
their diplomatic and consular personnel (the persons referred to in Article
85
2 of the Ordinance) in separate specialized retail outlets on the basis of a
verification document verified by the Ministry of Foreign and European
Affairs on the Form IOU
Direct tax exemption on delivery of motor vehicles for which registration is
mandatory in the Republic of Croatia for diplomatic and consular offices
and special missions based in the Republic of Croatia as well as their diplomatic and consular personnel the persons referred to in Article 2 of the
Ordinance) on the basis of a verification document verified by the Ministry
of Foreign and European Affairs on the Form IOMV
Direct tax exemption on shipments of motor fuel for motor vehicles
of diplomatic and consular offices and special missions with a head office
in the Republic of Croatia, as well as their diplomatic and consular personnel (the persons referred to in Article 2 of the Ordinance) with a special
card issued by a fuel excise taxpayer on the Form KG on the basis of a
validation document from the Ministry of Foreign and European Affairs
Direct tax exemption for deliveries of real estate that are in accordance
with the VAT Act subject to VAT, and rendering services of renting or
leasing business premises which are intended for official purposes of
diplomatic and consular offices and special missions based in the Republic
of Croatia (the persons referred to in Article 2 Paragraph 1 of the Ordinance) on the basis of the verification document from the Ministry of
Foreign and European Affairs on the Form IO.
2.2 Tax refund on deliveries in the Republic of Croatia
Diplomatic and consular offices and special missions based in the Republic
of Croatia as well as their diplomatic and consular personnel (the persons
referred to in Article 2 of the Ordinance) exercise tax exemption on delivered
goods or rendered services by submitting a request for tax refund to the
Ministry of Foreign and European Affairs on the Form P-DIP. If the required
criteria are fulfilled, the Ministry of Foreign and European Affairs shall submit the request for tax refund to the Tax Administration, Regional Office in
Zagreb, within 8 days from the receiving date.



i
Request for tax refund shall be submitted for a calendar quarter, at the latest within
12 months of the expiry of the quarter to which the request refers. A single request
is submitted for each calendar quarter.
The Regional Office in Zagreb issues a temporary decision within 60 days
from the receiving date of the request for refund from the Ministry of Foreign and European Affairs. Following the resolution on the approved tax
refund the Regional Office in Zagreb will carry out tax refund in HRK to an
account opened in the country no later than 10 days after the expiration of
60 days from the receiving date of the request from the Ministry of Foreign
and European Affairs.
86
i
If the Tax Administration, Regional Office in Zagreb, disputes the request in whole or
part, i.e. fails to ascertain the fulfillment of the prescribed criteria for tax refund, then
it shall issue a decision on the rejection of the request for a tax refund or issue a decision on the newly determined tax amount for refund.
2.3 Deliveries in another Member State of the European Union (EU)
Diplomatic and consular offices and special missions based in the Republic
of Croatia as well as their diplomatic and consular personnel (the persons
referred to in Article 2 of the Ordinance) that are eligible for tax exemption
on procuring goods or services in another EU Member State for a supplier
in another EU Member State submit the form “Certificate of exemption
from VAT and/or excise duty” verified by the Ministry of Foreign and European Affairs.
i
A person who in another EU Member State has a right to excise duty exemption is
required to submit to the competent regional customs office a “Notice of received
excise products” and a copy of the form “Certificate of exemption from VAT and/or
excise duty” no later than 5 working days from the date of receiving excise products.
3. Tax exemption for diplomatic and consular offices and international organizations
with a head or representative office in another EU Member State.
If diplomatic and consular offices, special missions, international organizations,
and their diplomatic, administrative, and technical staff based in another EU
Member State acquire goods or services from a taxpayer in the Republic of Croatia who is liable to VAT, or from licensed excise warehouse-keepers in the Republic of Croatia, then they shall exercise the right to direct tax exemption in the
Republic of Croatia by delivering the supplier the form “Certificate of exemption
from VAT and/or excise duty” validated by a competent state authority of the
state in which their head office is based.
i
Directly excise duty exemption is exercised at the moment of obtaining excise products released for consumption in the Republic of Croatia only if the right to VAT exemption is exercised as well. The supplier of excise products released for consumption
in the Republic of Croatia is required to deliver a verified copy of the certificate of
exemption from VAT and/or excise duty together with the invoice and receipt confirmation for the excise products to the competent customs office along with a written
request for excise duty refund.
4. Tax exemption for institutions and bodies of the European Union with headquarters in the Republic of Croatia
Direct tax exemption for acquiring goods or services in the Republic of Croatia for
official purposes is exercised by institutions or bodies of the EU with headquarters
in the Republic of Croatia to which the Protocol applies within limits and under
conditions set out in that Protocol and the Agreement between the Republic of
Croatia and the European Union on the Implementation of the Protocol on the
Privileges and Immunities of the European Communities in the Republic of Croatia.
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4.1 Deliveries in the Republic of Croatia
Institutions or bodies of the EU with headquarters in the Republic of Croatia
which are subject to the Protocol of 8 April 1965 on the Privileges and Immunities of the European Communities (hereinafter: the Protocol) are exempt
from VAT in the Republic of Croatia within limits and under conditions set out
in the Protocol and the Agreement between the Republic of Croatia and the
European Union on the Implementation of the Protocol on the Privileges and
Immunities of the European Communities in the Republic of Croatia.
i
In accordance with the Agreement the Republic if Croatia approves direct VAT exemption for procurement of goods and services that the EU purchases for official purposes. If the EU body has headquarters in the Republic of Croatia, VAT exemption for
procuring goods or services shall be granted when the value of those goods or services per invoice amounts to at least HRK 740.00 including VAT, customs duties, and
other taxes. The procedure of direct VAT exemption for procurement of goods, excise
products or services in the Republic of Croatia is carried in such a way that institutions
or bodies of the EU based in the Republic of Croatia deliver the supplier the order
document in which they must include the information about their right to tax exemption and refer to the Agreement between the Republic of Croatia and the European
Union on the Implementation of the Protocol on the Privileges and Immunities of the
European Communities in the Republic of Croatia.
4.2 Deliveries to another Member State of the European Union
Institutions and bodies of the EU based in the Republic of Croatia submit to
the supplier from another Member State a verified certificate of exemption
from VAT and/or excise duty from the Tax Administration, Regional Office in
Zagreb. If excise products are specified in the certificate, the Regional Office
in Zagreb verifies the certificate following the statement from the Customs
Administration.
5. Tax exemption for institutions and bodies of the European Union with headquarters in another Member State of the European Union or with a head office in a
third country
(identical to Item 3)
6. Tax exemption for the armed forces of other Member States of the North Atlantic
Treaty Organization (NATO) or for civil staff who accompanies them
Supplies of goods or services carried out in the Republic of Croatia for the purposes of the armed forces of other NATO Member States, or of the civilian staff
who accompany them, and for the supply of their cafeterias and canteens are
directly exempt from tax provided they participate in joint defense activities and
military actions, i.e. military exercises or training, conferences, seminars, and other similar activities. Confirmation of fulfilment of criteria is issued by the competent state body that is the holder of agreement implementation.
i
A taxpayer who performed the deliveries needs to include in their records a certificate
of the competent state body based on which the buyer exercised their right to taxexempt purchase.
88
PROHIBITION AGAINST ALIENATION OF GOODS PURCHASED WITH TAX
EXEMPTION
If a person who had the right to tax exemption when procuring goods alienates
those goods, hands them over for use to third parties or uses them for other
purposes prior to the expiration of 3 years from the date of their purchase, he/she
must pay the tax that he/she was exempt from at the moment of procurement.
A person who alienates those goods prior to the expiration of 3 years from the
date of their purchase is required to report this to the Tax Administration, Regional Office in Zagreb so that VAT and/or excise duty liability can be determined.
In case of an excise product, the Tax Administration, Regional Office in Zagreb
notifies the Customs Administration about it in order to determine the amount
of excise duty that needs to be paid as well as special tax on motor vehicles,
based on the decision of the Customs Administration.
Taxes are not paid if the alienation is a consequence of the death of the person
who is entitled to exemption, or if the goods are alienated by a family member of
the person who is entitled to exemption, and who ceases to reside in the Republic of Croatia as a result of the death of the person who had the right to exemption. Neither is tax paid in the case of destruction of an exempt motor vehicle
whose value on the accident date was reduced by at least 70 % or if it was stolen
and not recovered within 6 months of the theft report, as recorded in an inquest
register of the competent authority. If a person sells a destroyed motor vehicle
which has market value, and which exempt from tax in accordance with the VAT
Act, he/she is required to report this to the Tax Administration, Regional Office in
Zagreb. Alienation of goods procured with sales tax exemption from persons
who have the right to tax exemption is tax-exempt.
Name of the form
Who is liable to submit the form
P-PDV – application for Taxable person (submits to the - before the beginning of the unentry into the register competent local office of the Tax dertaking of the entrepreneurial
activity that is subject to taxation
of VAT taxable persons Administration)
- 15 days prior to the beginning of
the transaction on the EU the
taxable person submits the application for the issuance of a VAT
identification number
- before January 15th of the current year if in the past year taxable supplies exceed the amount
of HRK 230,000.00
foreign taxable person (submitted prior to the first delivery in the coto Tax Administration, Zagreb Re- untry
gional Office)
89
Name of the form
P-PDV – application for a taxable person from another - 15 days prior to acquiring goods
entry into the register Member State which requires an in the Republic of Croatia
of VAT taxable persons assigned VAT identification num- - prior to passenger transport to
ber (submitted to the Tax Admini- the territory of the Republic of
stration, Regional Office in Za- Croatia
- prior to delivery of goods whose
greb)
total value will exceed the prescribed amount (HRK 270,000.00)
up until the 20th of the current
PDV – report of Value - taxable person
Added Tax
- a person who is required to pay month for the previous accounting
VAT instead of a taxable person period
who does not have a head office NOTE: persons who are not registered in the Register of VAT Taxain the Republic of Croatia
- a person who is registered for ble Persons submit their applicatiVAT purposes and acquires a on for accounting periods in which
they acquired goods within the EU,
new means of transport
- a legal entity who is not a i.e. received services for which they
taxpayer but has crossed the are required to pay VAT, or had
acquisition threshold or has rendered such services
dropped out of it, or acquires
excise goods and whose other
acquisitions are not subject to
VAT liability, and who acquires
goods within the EU which are
subject to VAT liability
- a small tax payer if he/she performs services to taxpayers from
other Member States or third
countries for which the location
of rendering of services is the
location of the recipient’s head
office, and when he/she receives
services from such taxpayers
PDV – VAT return for a a taxpayer who in the Republic of the 20th day of the current month
special taxation proce- Croatia reported the application for the preceding quarter
of the special taxation procedure
dure
of telecommunications services,
electronic services, and services of
broadcasting radio and television
programs
PPO – Transfer of do- a taxable person registered in the the 20th day of the current month
mestic shipments with Register of VAT Taxable Persons in for the preceding quarter
transferable tax liability the country who performs domestic deliveries with transferable
tax liability
Form DONH – Report a taxpayer who carries out food up until the 20th of the current
on completed food do- deliveries without a fee (donati- month for the previous accounting
period (exceptionally for 2015 up
on)
nations
until 20 June 2016)
90
Name of the form
INO PPO – Application
for supplies of goods
and services from Article 75 Paragraph 2 of
the Act
a taxpayer who does not have a
head office, place of residence, or
habitual residence in the country,
and is registered in the Republic
of Croatia for the purposes of
VAT
a taxpayer representative – for
Form PZ 42 and 63 Declaration of goods supplies of goods to other EU
delivered
to
other Member States to which customs
Member States of the procedures 42 and 63 applied
European Union previously imported in the
framework of procedures 42 and 63
PDV – report of Value a tax representative for a taxpayer
Added Tax
whom he/she represents
PDV – report of Value a taxpayer who discontinued with
Added Tax
business
PDV – report of Value a foreign taxpayer who performs
Added Tax
occasional international road
transport of passengers by bus,
minibus, van, or taxi service in the
Republic of Croatia
PDV-S – report of goods procured and services received from other
Member States of the
European Union for
month ____ year ____
ZP – Cumulative report
of goods and services
supplied to other Member States of the European Union for month
____ year ____
Procurement NPS – report for the procurement of new means of
transport from another
Member State of the
EU
a taxpayer for accounting periods
in which he/she procured goods
and received services from other
Member States of the EU
month for the previous accounting
period (to be submitted electronically through system e-Porezna if
deliveries of goods/services were
performed in that period)
period (submitted to the Regional
Office in Zagreb)
period (submitted to the Regional
Office in Zagreb)
month for the last accounting period in which he/she did business
(with all necessary adjustments
and corrections)
period (only for accounting periods in which he/she performed
services of international road transport of passengers in the Republic
of Croatia)
up until the 20th in the month for
the previous month
a taxpayer who performed servi- up until the 20th in the month for
ces and delivered goods within the previous month
the EU (to be submitted electronically via the VIES system)
a taxpayer who procures new means of transport within the EU
(submitted to the appropriate
branch office of the Tax Administration)
10 days from the procurement
date of new means of transport (a
taxpayer who uses new means of
transport for resale does not file
the report)
91
Name of the form
a taxpayer that supplies new means of transport to a person who
is not registered for VAT purposes
and a taxpayer who occasionally
delivers new means of transport
(submitted to the appropriate
branch office of the Tax Administration)
PDV-P – Application for a buyer’s domicile or usual resithe refund of VAT
dence is not in the Republic of
Croatia,
PDV-F – records of invo- The seller of goods in passenger
ices for sold goods for traffic
VAT refund in the framework of passenger
transport
ZP-PDV – Application a taxpayer who has no head offifor the refund of VAT
ce in the territory of the EU requesting a refund of VAT calculated
for delivered movable goods or
rendered services in the country,
or at import of goods into the country for conducting business
(submitted to the Tax Administration, Regional Office in Zagreb)
PDV-H – application for legal persons registered for performing humanitarian, charitable
the refund
VAT to authorized bo- or educational activities
dies for exported goods
P-DIP – Application for diplomatic and consular offices,
the refund of VAT
international organizations, and
institutions and bodies of the EU
based in the Republic of Croatia
and their staff
IOU – Validation of the diplomatic and consular offices,
right to exemption international organizations, and
from customs duty, institutions and bodies of the EU
VAT, excise duty, and based in the Republic of Croatia
special excise duty on and their staff
import
IOMV – Direct exempti- diplomatic and consular offices,
on for motor vehicles
IO – Direct tax exempti- diplomatic and consular offices,
on for purchasing real international organizations, and
estate/renting or lea- institutions and bodies of the EU
sing real estate
Delivery NPS – report
for delivering new means of transport from
the Republic of Croatia
to another Member
State
92
10 days from the delivery date of
new means of transport whereby
prior to the 3-month expiration
period after the month in which
the shipment was carried out
With VAT return for the last accounting period of the calendar year
6 months after the expiration of
the calendar year in which the
conditions for refund of VAT were
met
6 months after the expiration of
the calendar year in which the
conditions for refund of VAT were
met
not later than 12 months after the
expiration of the quarter to which
the application refers (submitted
to the Ministry of Foreign and European Affairs)
directly upon import of goods in
the Republic of Croatia and in separate specialized retail outlets in
the Republic of Croatia (document
verified by the Ministry of Foreign
and European Affairs)
directly upon import of motor vehicles in the Republic of Croatia
(document verified by the Ministry
of Foreign and European Affairs)
- for shipments of real estate subject to VAT according to the
VAT Act
- for rendering services of renting
or leasing business premises
Name of the form
KG – Fuel card
- Certificate of exemption from VAT and/or
excise duty
- Notice of received
excise products
Certificate of exemption from VAT and/or
excise duty
Report PDV – Report of
exercised VAT exemptions
i
diplomatic and consular offices,
and their staff
and their staff who have the right
to tax exemption when procuring
goods or services in another EU
Member State
special missions, international organizations and their diplomatic,
administrative, and technical staff
based in another EU Member State or a third country when procuring goods or services from a
VAT-taxable person or authorized
excise warehouse-holders in the
Republic of Croatia
The state body responsible for the
project
directly at purchase of motor fuel
in the Republic of Croatia (document of excise taxpayer verified by
the Ministry of Foreign and European Affairs)
no later than 5 working days after
the receiving date of excise products (submitted to the competent
customs office branch)
when procuring goods or services,
a validated copy of the certificate
of exemption, validated by a competent state authority of the state
in which their head office is based,
is submitted to suppliers of goods,
services, and excise products in the
Republic of Croatia
by the end of February of the current year for the preceding year
(delivered to the Tax Administration, Regional Office in Zagreb)
All VAT-taxable persons are required to submit forms PDV, ZP, and PDV-S in
electronic form only via the system e-Porezna. VAT return in paper form
can be submitted by small taxpayers who receive and render services solely to taxpayers from third countries and taxpayers who do not have a head
office, permanent business unit, place of residence, or habitual residence
in the country and perform exclusively occasional international road transport of passengers in the Republic of Croatia.
SPECIAL RECORDS
Name of the form
Book of issued (output) invoices (I-RA) for the supply of goods and services
Book of received (input) invoices (U-RA) for goods and services received
Special records for imported good
A taxpayer must keep records of shipped or transported goods, or those which
were for his account shipped or transported outside of the Republic of Croatia
but within the European Union in order to perform services of value assessment
of goods or work on those goods or their temporary use.
A taxpayer must keep a record of the acquisition of goods from other Member
States, received and rendered services in other Member States as well as third
93
countries, received shipments subject to tax liability transfer in the country, and
VAT paid upon import.
A taxpayer must keep a record that allows the identification of goods which were
shipped from another Member State by a taxpayer registered for the purposes of
VAT in that Member State, or another person for their account, and which have
been used in the services of assessing value of those goods or work on those
goods.
If the taxable person in personal accounting provides all the data necessary for assessment of the taxable base, that is the tax and the input tax, it is not bound to keep the
regulation books and records.
i If a taxable person has transitory items in their invoice, then he/she can add new
columns in books I-RA and U-RA in which these items will be recorded (e.g. for recording returnable packaging).
i
Dealer who applies margin taxation for supplies of used goods, works of art, collectors’ items and antiques is required to ensure in his accounting all necessary information on procurement and sale of mentioned goods. Data shall be entered in these
records:
Name of the record
Record of the sold goods in special procedure of margin taxation (Form PDV-MI)
Record of the procured goods in special procedure of margin taxation (Form PDV-MU)
A taxpayer who does not have a head office in the European Union, and in the Republic of Croatia reported the application of a special taxation procedure for telecommunications services, radio and television broadcasting services, and electronically rendered services must keep records of the transactions covered by this special
taxation procedure in order to enable the tax authority of the recipient Member State
to validate the correctness of the VAT return. He/she is also required to electronically
submit a VAT return via e-Porezna until the 20th of the current month for the previous quarter.
INVOICES
A taxpayer must issue an invoice for:
1. the supply of goods and services which he/she performed for another taxpayer or legal entity who is not a taxpayer (government bodies, cities, municipalities, and the like),
2. the delivery of goods which the supplier, or another person for the account of
the supplier, ships or transports from a Member State which is not the Member State in which the dispatch or transport ends,
3. the delivery of goods and rendering of services within the EU that are exempt
from VAT (including the delivery of new means of transport, goods which are
subject to excise duties, and the relocation of goods), under certain conditions,
i
On an exceptional basis, a taxpayer is not required to issue an invoice for the following services that are exempt from VAT:
94
a) insurance and reinsurance transactions, including related services rendered by insurance brokers and insurance agents,
b) granting loans and credits, including mediation in those jobs, and managing of
loans or credits when performed by the person who approves them,
c) contracting of credit guarantees and all other jobs related to credit guarantees or
other insurance money and the management of credit guarantees when performed
by the person who approves the loan,
d) transactions, including mediation, in connection with savings, current, and giro
accounts, payments, transfers, debts, cheques, and other negotiable instruments,
except debt collection,
e) transactions, including mediation, concerning currency, banknotes and coins used
as legal tenders, with the exception of collectors’ items, gold, silver or other metal
coins or banknotes which are not normally used as legal tenders or coins of numismatic value,
f) transactions, including mediation, except management and safekeeping, in connection with stocks, shares in trading companies or associations, bonds and other
securities, with the exception of documents that establish a right over goods and
rights or securities which determine specific rights on real estate,
g) management of special investment funds,
4. supplies of goods which are exempt from VAT liability within the EU,
5. received prepayments made before the supply of goods and services,
For prepayments received before the delivery of goods or performance of
services an invoice must be issued (invoice for advance payment does not
have to include information about quantity). Upon supplying goods and services, an invoice is issued in which the calculated amount of VAT is reduced
by VAT calculated on the received prepayment, whereby it is necessary to indicate the number of the invoice issued for the received prepayment. It is not
required to issue an invoice for received prepayment if an invoice for delivered
goods or rendered services is issued prior to deadline for submitting a VAT
return for the accounting period in which the prepayment was received.
In an invoice for received prepayment which refers to deliveries of goods for
which VAT margin was calculated and paid, as the difference between the
selling and purchase price, VAT is calculated from the tax base which is equal
to the difference between the selling price that a taxpayer charges for goods
and the purchase price of those goods.
6. supplies carried out by a suppliers from another Member States if
the total value of shipments in the previous calendar year or in the
current calendar year is greater than HRK 270,000.00 (shipping
threshold in the Republic of Croatia),
i
A supplier may deem a domestic delivery location, regardless of the fact that the total
value of their shipments in the previous calendar year or in the current calendar year
did not pass to the prescribed shipping threshold.
95
7. agiotage activities in the country.
If a small taxpayer issues an invoice, he/she must indicate in the invoice
that the supplies of goods or services are exempt from VAT based on
provisions of Article 90 Paragraph 2 of the VAT Act.
An invoice is deemed any document or notice that changes the original invoice which explicitly and unambiguously refers to it.
An invoice may be issued in paper or electronic form. A taxpayer shall deliver an invoice to a customer, whereby a copy of the invoice serves as an accounting document.
i
If a taxpayer issues internal invoices for shipments between business entities or business units of the same taxpayer, such invoices are not deemed invoices and do not
affect taxation, which means they do not affect the assessment of VAT liability and
input tax deduction.
An invoice must be issued no later than the 15th of the month following the month in
which an exempt shipment of goods was carried out to another EU Member State
(including shipments of new means of transport, goods that are subject to excise duties, and relocation of goods). That deadline also applies to rendered services for which
the service recipient in another Member State is required to pay VAT. This deadline
does not apply to shipments of goods and services carried out in the country.
i
A taxpayer can issue a cumulative invoice for several separate shipments of goods or
services, provided that he/she calculates VAT on shipments enumerated in the cumulative invoice during the same calendar month.
An invoice may also be issued by the recipient of goods and services that a taxpayer
supplied or rendered, provided that there is an agreement between the two parties,
and provided that a procedure for accepting each invoice by the taxpayer who carries out the shipment of goods and services is established.
If a supplier of goods or services who does not have a head office or permanent business unit in the country supplies goods or services in the Republic of Croatia to a recipient who is required to pay VAT, the applied rules for issuing invoices will be those
of the Member State from which a shipment is performed and in which the supplier
has a head office, permanent business unit, place of residence, or habitual residence.
In the event that an invoice is issued by a recipient of a shipment (self-billed invoice), it
is deemed that shipments were performed in the Republic of Croatia.
An invoice issued to other taxpayers or legal persons that are not taxpayers must
contain at least the following details:
1. invoice number and date of issue,
2. name (title) address and personal identification number of entrepreneur who
has supplied the goods or rendered the service (the vendor)
96
3. the name (title) address and personal identification number of entrepreneur
to whom the goods or service have been supplied or rendered (the purchaser)
4. the amount and common trade name of the goods supplied, and the kind
and amount of the services rendered,
5. the date of the supply of the goods or the rendering of the services, or the
date of receipt of the deposit in the deposit invoice if such date can be determined and if it differs from the date of issue of the invoice,
6. the amount of the price of the goods supplied or the services rendered classified according to tax rate
7. discounts or rebates if they are not included in the unit price,
8. tax rate,
9. the amount of tax classified according to tax rate, unless a special procedure
is applied for which such information is not used based on the VAT Act,
10. the aggregate amount of consideration and tax.
i
Amounts in invoices are presented in Croatian Kuna (HRK), but can be expressed in
any currency; provided that the amount of VAT to be paid or that is being harmonized is expressed in HRK at the rate of the Croatian National Bank on the date of
incurrence of VAT liability. If invoices are issued in other currencies, individual amounts
in invoices can be expressed in another currency, but the total amount of the invoice
and the amount of VAT to be paid must be stated in HRK.
A taxpayer can issue a simplified invoice for performed deliveries of goods
and services that amount up to HRK 700.00. Such invoices shall contain the
following information:
1. invoice number and date of issue,
2. name or title, address and personal identification number of entrepreneur
supplying the goods or rendering the service, and indication of the place
where the supply or rendering took place (number of sales outlet, business
premises, shop and the like),
3. the name (title), personal identification number of entrepreneur to whom
the goods or service have been supplied or rendered (the purchaser)
4. quantity, price and common trade name of the goods supplied and the
kind, quantity and price of services rendered,
5. aggregate amount of consideration and tax classified according to tax
rate.
6. the amount of charged VAT categorized by the rate of VAT,
7. when an issued document or notice is deemed an invoice21, a reference to
the original invoice with details which have been modified.
i
21
A taxpayer cannot issue a simplified invoice for the supplies of goods or services to
another Member State in which VAT shall be paid, or if their permanent business unit
in that Member State does not participate in the delivery within the meaning of Arti-
Any document or notice that changes the original invoice and which explicitly and unambiguously refers to it is deemed an invoice.
97
cle 192a of the Council Directive 2006/112/EC, and the person who is required to pay
VAT is the person to whom the goods were delivered or services rendered.
A taxpayer who in another Member State (in which VAT shall be paid has no
head office, or their permanent business unit in that Member State does not
participate in the delivery within the meaning of Article 192a of the Council
Directive 2006/112/EC22) carries out a delivery of goods or services to a recipient who is required to pay VAT must indicate on an invoice the tax base of
those goods and services, and the quantity of the delivered goods or services
plus their name.
VAT-taxable persons who ship goods or perform services that are exempt from VAT
must specify on an invoice the provision of the VAT Act on whose basis VAT was not
calculated or the corresponding provision of the Council Directive 2006/12/EC, or
specify a notice that refers to exemption. In these cases, only the cumulative amount
of considerations may be indicated in an invoice.
i A taxable person, who applies the special taxation procedure for travel agencies
which conduct business with travelers in their own name, and use supplies of goods
and services of other taxable persons for supplying travel services, must include the
notice “special taxation procedure – travel agencies” in their invoices.
i A taxable person who applies the special margin taxation procedure for second-hand
goods, works of art, collector’s or antique items must include the notice “special
margin taxation procedure -second-hand goods”, “special margin taxation procedure – works of art”, or “special margin taxation procedure – collectors ‘ or antique
items” in their invoices.
i
When a customer receives a shipment and in lieu of the supplier issues an
invoice, he/she must include the notice “self-billed invoice” in that invoice.
i
In the case that the recipient of goods or services is required to pay VAT, the supplier
must include the notice “transfer of tax liability” in their invoice, or the English phrase
“reverse charge”.
If a taxpayer appoints a tax representative, he/she must include the representative’s first and last name (title), address, and personal identification
number (OIB) or VAT identification number in the invoice.
Invoices for shipments of new means of transport within Member States of the EU
except prescribed data must also include data for:
  vessels – that they were shipped within 3 months from the date of first use or that
they were not in voyage more than 100 hours
i
22
Article 192a of the Council Directive 2006/112/EC is implemented when a taxpayer is deemed
a tax person who is not established in a Member State.
98
  aircraft – that they were shipped within 3 months from the date of first use or that
they were not in aviation more than 40 hours
  land motor vehicles – that they were shipped within 6 months from the date of first
use or that they covered no more than 6000 km
VAT REFUND
1. VAT refund per VAT return:
A taxpayer whose input tax is greater than their tax liability in an accounting period
is entitled to a refund of the difference between input tax and tax liability. He/she
may use this difference:
a) as a prepayment for future liabilities, or
b) request a refund,
c) transfer to another taxpayer.
The Tax Administration is required to carry out a refund within 30 days from the
submission date of a VAT return, and no later than 90 days from the date of launching a tax inspection.
If a taxpayer with a head office, place of residence, or habitual residence in the Republic of Croatia submits a request for VAT refund from another Member States, he/
she must submit it via the electronic site of the Croatian Tax Administration no later
than September 30th of the calendar year following the refund period.
i
A refund period should not exceed one calendar year or be less than 3 calendar
months in a row. Requests for refund may also refer to a period shorter than 3
months if this period covers the end of a calendar year.
A taxpayer cannot apply for a VAT refund for a period in which he/she was
not registered in the Register of VAT Taxable Persons.
2. VAT refund to taxpayers based in another EU Member State
A taxpayer who has a head office in another Member State is entitled to a refund of
the VAT incurred for goods and services that were delivered or performed by other
taxpayers in the country, or for goods imported in the country, under the following
conditions:
1. during return period in the country a taxpayer did not have headquarters or
permanent business unit from which business transactions could be carried
out, nor did he/she have a place of residence or habitual residence if such
headquarters or permanent business unit did not exist,
2. during return period a taxpayer did not supply goods or perform services
which are deemed supplied or rendered in the country, except transport and
transport-related services exempt from VAT as well as services and supplies of
goods to a recipient who is a VAT-taxable person.
99
i
The listed taxpayers cannot request VAT refund for incorrectly calculated VAT amounts
and VAT amounts which were calculated for supplies of goods that are exempt or may
be exempt from VAT as supplies of goods to another Member State or supplies of goods
which are shipped from the EU by a buyer who is not based in the Republic of Croatia.
The return period cannot be longer than one calendar year nor shorter than 3 consecutive calendar months. Requests for refund may also refer to a period shorter
than 3 months if this period covers the end of a calendar year. The Tax Administration
concludes whether an applicant’s request is approved or denied within 4 months
from receiving a refund request.
i
The Tax Administration may request for additional data from a taxpayer that may include deliveries of original invoices, but in any case, the Tax Administration is required
to issue a decision no later than 8 months from the date of receiving a request for
VAT refund.
If the request for refund is approved, the Tax Administration shall carry out refund of
the approved amount no later than 10 working days after the expiration of 4 or 8
months from the date of receiving the request for refund. Refund is redeemed in the
country or, at the applicant’s request, any other Member State.
3. VAT refund to taxpayers who do not have a head office in EU territory
Entitled to a VAT refund is:
1. A taxpayer without headquarters, fixed business unit from which shipments
were made, place of residence, or habitual residence in the EU has the right
to VAT refund incurred on moveable goods and services rendered by other
taxable persons in the Republic of Croatia, or incurred at import of goods into
the Republic of Croatia. The right to VAT refund may be exercised under the
condition that in the applicant’s home country a domestic taxpayer also has
the right to VAT refund.
i
That taxpayer is not entitled to VAT refund for VAT amounts that were incorrectly
calculated and for VAT amounts incurred for supplies of goods that are exempt or
may be exempt from VAT.
2. A taxpayer who in the period for which he/she requests VAT refund did not supply goods and services whose tax location is the Republic of Croatia, except:
a) transport and transport-related services exempt from VAT,
b) services where the person to whom the services were rendered is required
to pay VAT.
i
In order to exercise the right to VAT refund, a taxpayer must submit to the Tax Administration a request for VAT refund no later than June 30th of the calendar year following the end of the calendar year to which the request refers.
The return period cannot be longer than one calendar year nor shorter than 3 consecutive calendar months. Requests for refund may also refer to a period shorter
than 3 months if this period covers the end of a calendar year. Request for VAT re-
100
fund that refers to a return period shorter than one calendar year but longer than 3
months can be submitted if the amount of VAT for which refund is requested is no
less than HRK 3,100.00.
Request for VAT refund that refers to a return period of one calendar year can be submitted if the amount of VAT for which refund is requested is no less than HRK 400.00.
Within a maximum period of eight months from receiving a request for VAT refund
the Tax Administration issues a decision on whether the request was approved in full,
part, or not at all. If the request for refund is approved, the Tax Administration shall
carry out refund of the approved amount on the applicant’s account (at his expense)
no later than 10 working days after 8 months from receiving the request for refund.
PAYMENT DEADLINES AND PAYMENT ACCOUNTS
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Classification
Type of value added tax
Deadline for payment
1201
Value added tax
1236
VAT refund to foreign entrepreneurs The Tax Administration shall perform refund of the approved
from the EU
amount not later than 10 working days after the expiration
of 4 months or, if additional information is requested, at the
expiration of 8 months from the date of receiving the request
for VAT
1244
refund from entrepreneurs registered in the Republic of Croatia who
render e-services, telecommunications services, and services of
broadcasting television and radio
programs in other EU Member
States
1260
VAT is refunded to diplomatic and
no later than 12 months from the quarter to which the
consular posts, special missions, and application refers
international organizations based in
- up until the last day of the current month for the previous
accounting period (monthly or quarterly)
- a person who is not registered for VAT purposes that acquires a new means of transport pays VAT on the basis of the
Tax Administration’s decision
up until the 20th of the current month for the past quarter
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i
Supplied as a third piece of information on payment orders with the number tag 1244 are the label of the quarter (1 digit) and the year (2 digits) for
which the payment is performed.
TAX REGULATIONS
The Value Added Tax Act (Official Gazette No. 73/13, 99/13 – Decision of the
Constitutional Court of the Republic of Croatia, 148/13, 153/13 – Decision of the
Constitutional Court of the Republic of Croatia, 143/14),
26/15, 44/16),
Act on Electronic Documents (Official Gazette No. 150/05),
Act on Electronic Signatures (Official Gazette No. 10/02, 80/08),
Framework agreement between the European Commission and the Government
of the Republic of Croatia concerning the participation of the Republic of Croatia
in the European Community’s aid programs (Official Gazette – International
Agreements No. 8/02, 11/02),
Framework agreement between the government of the Republic of Croatia and
the commission of the European Communities on the rules for co-operation concerning EC financial assistance to the Republic of Croatia in the framework of the
implementation of the assistance under the instrument for pre-accession assistance (IPA) (Official Gazette – International Agreements No. 10/07),
Regulation on the Publication of the Agreement Between the Republic of Croatia
and the European Union Concerning the Implementation of the Protocol on the
Privileges and Immunities of the European Union in the Republic of Croatia (Official Gazette – International Agreements No. 7/12),
Value Added Tax Ordinance (Official Gazette No. 79/13, 85/13 – correction,
160/13, 35/14, 157/14, 130/15),
Ordinance on the Form, Content, Deadline and Manner of Delivery of Business
Books, Records and Reports that are kept in Electronic Form (Official Gazette No.
59/09),
Gazette No. 51/11, 62/11),
Ordinance on the Procedure for Exemption from Payment of Tax for Diplomatic
and Consular Offices, Institutions and Bodies of the European Union and International Organizations (Official Gazette No. 81/15),
Regulations on Electronic Signature, the Use of Instruments for Electronic Signatures, General and Special Conditions of Business for Providers of Time Stamp
and Certificates (Official Gazette No. 107/10, 89/13),
Regulations on Exemption of Value Added Tax and Excise Duty for Goods Imported in Personal Luggage of Persons Travelling from Third Countries and for
Goods Imported as Small Value Non-Commercial Items (Official Gazette No.
79/13),
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1.4 EXCISE DUTIES AND SPECIAL TAXES
1.4.1 SYSTEM OF EXCISE DUTIES LEVIED ON
ALCOHOL, ALCOHOLIC BEVERAGES,
TOBACCO PRODUCTS, ENERGY PRODUCTS
AND ELECTRICITY
EXCISE DUTY PAYERS
1. The authorized excise warehouse keeper, registered recipient, is any person who releases excise products or a person on whose account such products are released from the system of excise duty payment suspension,
The authorized excise warehouse keeper shall mean a legal entity or a natural person
that has been granted the warehouse keeping authorization by the competent customs house under which they may, as part of their registered business activity, receive, produce, store or carry out other actions on excise products at the excise warehouse, as well as dispatch excise products under excise-duty suspension arrangements.
i A registered recipient may within his/her registered activity receive excise products from
other Member States in the system of excise-duty suspension arrangements if its headquarters, or the place of residence or a subsidiary is in the Republic of Croatia, and if the
same gets the approval of the competent customs office based on the location of the
headquarters, or place of residence or subsidiary. A registered recipient may not store
nor dispatch excise duty products in the excise-duty suspension system.
i
Occasional registered recipient is a registered recipient who in the performance
of its registered activities only occasionally receives excise duty products from
other Member States in the system of excise-duty suspension. The same must
obtain from the competent customs office based on the headquarters, or a
place of residence or seat of the subsidiary in the Republic of Croatia, the authorization/approval that is limited to a certain quantity of excise-duty products
for each individual delivery by one consignor, and for a specific period within
the calendar year. Occasional receipt of the excise duty products is deemed to
be the receipt of excise duty products from other Member States in the system
of suspended payments of excise duty up to three times in one calendar year.
2. The importer of excise products,
i
The importer of excise duty products is a customs debtor determined according to
customs regulations.
3. The producer of excise duty products outside excise-duty suspension
arrangements,
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i
Manufacturer of excise duty products outside the suspension system is the taxpayer
for whom the liability to calculate excise duty arises at the moment of the production
of excise duty products, except for tobacco products and energy products. Exciseduty payment suspension system is applicable: on receipt, production, processing,
storage, performance of other actions with excise-duty products and dispatch of excise-duty products for which the excise-duty payment is suspended.
4. The buyer of confiscated excise products, except when the seller is authorized excise warehouse keeper or the exempt user,
i
Holding for commercial purposes is considered to be the holding of excise-duty products by a person who is not a natural person and who does not hold the products for
personal use nor personally transports the same.
5. The vendor from another Member States, or his/her tax representative for
on-line sales or the recipient of excise-duty products in the Republic of
Croatia if the vendor has not reported to the competent authority and
filed an insurance payment instrument of excise duty prior to the dispatch of goods in accordance with the provisions of the Excise Duties Act.
Tax representative for on-line sales is a legal entity or a natural person
appointed by the vendor in another Member State of the EU, to perform the
obligations and uses the rights in his/her name and for his/her account in the
Republic of Croatia in accordance with the provisions of the Excise Duties Act,
if the same obtains approval of the competent Customs Office. Tax representative must have a permanent residence, headquarters or a subsidiary in
the territory of the Republic of Croatia.
i
When excise products released in the consumption in another Member State receives
a person in the Republic of Croatia, the obligation of the calculation of excise duty
arises in the Republic of Croatia.
Excise duties are also paid by:
1. a person who holds excise products outside of excise-duty payment suspension
system for which excise duty has not been paid in accordance with the provisions
of the Excise Duties Act, or any other person who is involved in holding these
products,
2. a person who puts the excise products in consumption when:
• the competent Customs Office sells or relinquishes seized excise products,
except when they are sold or relinquished to the authorized holder of an excise warehouse, or to a exempt user,
• excise products have been in the process of merging economic subjects released for consumption, except when the customer is the authorized holder
of an excise warehouse, i.e. exempt user
• the process of the merger of economic subjects is completed and the excise
products are dispatched to the newly created subject, except when the newly-
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created subject is the authorized holder of an excise warehouse, i.e. exempt
user, but at the latest until the 30th day from the date of entry of the merger
in the commercial register,
• excise products have been in bankruptcy proceedings released for consumption or dispatched to the creditor, except when the creditor is the authorized
holder of an excise warehouse, i.e. exempt user.
3. a person who illegally produces, receives, dispatches, imports, transports, stores,
holds, possesses, sells, buys, releases for consumption excise products or disposes of the same in any other illegal manner, as well as a person who takes part
in such actions, and who is considered to be excise payer,
4. authorized holder of excise warehouse, registered consignor or any other person
that has in accordance with the Excise Duties Act guaranteed the payment of
excise duty – in case of irregularities that have occurred during the movement of
excise products in excise-duty payment suspension system,
i
Registered consignor is a legal or natural person who has the approval of the competent authority of the importing Member State to dispatch, within its registered activities and under the regulations from Excise Duties Act, only excise products that are
in the excise-duty payment suspension system after their release for free circulation in
accordance with Article 79 of the Council Regulation (EEC) No 2913/92. A registered
consignor must have its headquarters, or residence or a subsidiary in the Republic of
Croatia and obtain the approval of the competent customs office based on the location of its headquarters, or residence or a subsidiary. A registered recipient may not
receive nor store excise duty products in the excise-duty suspension system.
5. person who guaranteed the payment of excise duties during the movement of
excise products released for consumption between the Member States and in
on-line sales – in case of irregularities that have occurred during the movement
of excise products released for consumption,
6. exempt user of excise products when dispatching or using excise products for the
purpose for which the same has not obtained approval.
i
Exempt user of excise products is a legal or natural person that has obtained the approval of the competent customs office that the same may within the framework of
its registered activity for the purposes mentioned in Article 61 Paragraph 1 Items 4 to
12 and Article 101 Paragraph 1 and 8 of the Excise Duties Act procure excise products
without paying excise duty.
Excise duty payer for electricity from the tariff code KN 2716 is deemed to be:
1. electricity supplier when electric energy is delivered to the end customer in the
Republic of Croatia,
2. supplier who imports electricity for personal use,
3. manufacturer who uses the produced electrical energy for personal purposes.
Excise duty payer for natural gas from the tariff code KN 2711 11, 2711 21 and
gases from the tariff code KN 2711 29 is deemed to be:
1. gas supplier when natural gas is delivered to the end customer in the Republic of Croatia,
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2. supplier who imports natural gas for personal consumption,
3. manufacturer who uses the produced natural gas for personal consumption.
Excise duty payer for solid fuels from the tariff code KN 2701, 2702 and 2704 is
deemed to be:
1. solid fuels supplier when solid fuels are delivered to the end consumer in the Republic of Croatia, i.e. when the solid fuels are used for personal end consumption,
A supplier is any legal entity or a natural person with the headquarters, or residence in
the Republic of Croatia, which performs registered activity of trading of carbon, cox and
lignite (hereinafter: solid fuels) and who procures solid fuels without payment of excise
duties for further sales based on the approval of the competent Customs Office for the
purchase of solid fuels without excise-duty payment.
i An end consumer is any legal entity or natural person that does not have the approval
of the competent Customs Office for the purchase of solid fuels without payment of
excise duty.
i
2. end consumer when importing solid fuels for personal end consumption.
NOTE:
Manufacturers of beer, wine, ethyl alcohol, intermediate products and other beverages obtained by fermentation, who for commercial purposes produce beer,
wine, ethyl alcohol, intermediate products and other beverages obtained by fermentation can be exempted from the conditions that are prescribed for excise
duty warehouses and perform business activities outside excise-duty payment
suspension system.
Provisions relating to the movement of excise products, the submission of the daily
calculation of excise duty and general working conditions of excise warehouses do
not apply for excise duty taxpayers for electricity, natural gas and solid fuels.
Small independent breweries
A small independent brewery is a brewery with an annual production of beer up to
125,000 hectoliters. The brewery must:
1. be legally and economically independent of any other brewery,
2. use production (above-ground and underground areas) and warehouse
premises that are physically separate from any other areas of the brewery
where the beer is produced, and
3. not produce beer under license.
Annual beer production implies a quantity of beer that is produced in the calendar
year preceding the year of submission of the approval application.
i If two or more small breweries cooperate and their annual joint production does not
exceed 125,000 hectoliters, such breweries can be regarded as one small independent brewery.
i
Before the beginning of work, a small independent brewery must obtain the approval of the competent customs offices based on the headquarters or place of residence, for doing business with the status of a small independent brewery. The approval is issued and shall apply for the period of one calendar year, based on the
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application that is to be submitted by January 31st of the current year, based on the
data on production in the previous calendar year.
If during the current calendar year, the excise duty taxpayer and beer manufacturer
intends to produce a quantity of beer that is higher than the approved amount, the
same must at least 8 days before the beginning of such production submit to the
competent Customs Office a request for the modification of the approval.
i A small independent brewery calculates and pays a reduced rate of excise duty prescribed in Article 66b of the Excise Duties Act. Procedural provisions that regulate the
rights and obligations of small independent breweries are prescribed in Articles 77 to
84. Ordinance on Excise duties.
i
Small producers of wine and small producers of strong alcoholic beverages
A small wine producer is a person who, for commercial purposes produces no more
than 1000 hl of wine per year. The same must no later than 8 days before the start
of production to file to the competent Customs Office according to its headquarters
or place of residence an application for the registration in the register of excise-duty
payers.
i
Small wine producers are exempt from the conditions laid down in relation to the
movement of excise duty products in the excise-duty payment suspension and working conditions of excise-duty warehouses.
A small wine producer is a person defined by special regulations, who produces no
more than 1,000 hl of wine per year. A small strong alcoholic drink producer is considered to be a natural person who owns or uses agricultural land, and who owns
substances for the production of strong alcoholic drinks and who produces the same
for his/her personal use in the amount not exceeding 20 liters of pure alcohol per
year per household (for example 50 liters of brandy 40% vol.). He/she is not allowed
to sell strong alcoholic beverages.
i
Strong alcoholic beverages are deemed to be products under the tariff code KN
2208.
Small producer of strong alcoholic beverages pays the excise duty depending on the
capacity of the still. Excise duty payable in respect of each still with a capacity of 100
liters shall be HRK 100.00, and in respect of stills with a capacity of over 100 liters
shall be HRK 200.00.
i Small producer of strong alcoholic beverages is under obligation of payment of excise
duty if the same produces more than 20 liters of pure alcohol per year and household. The same is obliged to calculate and pay excise duties on the excess quantity
produced.
i If a small producer of strong alcoholic beverages – the owner of the still notifies the
competent customs office at the latest by June 30 of the current year that the still is
not in use and requests to seal the same, excise duty is not incurred for the following
tax periods during which the still is sealed. For the year in which the competent customs office takes off the seal or determines that the seal was taken without the
i
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consent of the competent customs office, the excise duties incurs as previously described.
i Excise duty is not incurred for the tax period if a small producer of strong alcoholic
beverages will not produce the same, and he/she is not the owner of the still but only
a user, and he/she notifies the competent customs office of the same at the latest
until June 30th.
i Placement and removal of a still seal is performed by a competent customs office on
request and the cost of a small producer of strong alcoholic beverages.
i Small producers of strong alcoholic beverages shall be exempted from the requirements set out in the provisions of general conditions for operation of excise warehouses.
The Customs Administration can ban further performance of the activity to the excise-duty payer with a resolution, if the same:
1. does not allow or interrupts the enforcement of tax or excise-duty supervision,
2. carries out the activity of production or sale of excise duty products on the
territory of the Republic of Croatia without registration in the register of taxpayers,
3. does not calculate, inaccurately calculates or does not pay excise duties,
4. does not possess documentation on the produced, received, dispatched, delivered and sold excise products,
5. does not keep prescribed records nor does submit prescribed reports,
6. does not possess nor gives for inspection the documentation about exciseduty payment obligation and paid excise duty, as well as other tax and legally
relevant business and financial documentation.
i
Appeal against the decision does not postpone the execution of the decision.
Sale of excise products on markets, places of convenient trade and on
other open places:
Excise duty payers and all other natural or legal persons are permitted to sell excise
products on places that are designated as markets and places of convenient trade
(trade fairs, exhibitions, shows, events and the like) and other places, only if the
conditions laid down by special provisions in relation to the performance of the activity of trade, billing, as well as the conditions laid down by special provisions that
are in any way related to excise products.
i
Natural or legal persons who manage the business of marketplaces, shopping centers
and who organize convenient trade, as well as competent authorities of local selfgovernment units have to provide the respect of the provisions of this Law and are
required to disable the violation thereof in markets, shopping centers and convenient
trade places.
EXEMPT USER OF EXCISE PRODUCTS
Exempt user of excise products (hereinafter: exempt user) is a legal or natural
person that has obtained the approval of the competent customs office that the
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same may within the framework of its registered activity procure excise products
without excise duty payment for the following purposes:
1. energy products used by the producer of the energy products and electricity
in its premises for further processing or for the production of other energy
products and electricity, unless they are used as motor fuel for vehicles,
2. energy products used for joint production of heat and electricity in a single
process (cogeneration),
3. energy products that are used in mineralogical processes,
4. dual use of energy products – if they are used as fuel for heating, and at the
same time, for a purpose that is not drive or heating (use of energy products
for chemical reduction, in electrolytic and metallurgical processes),
5. energy products used for other purposes, and not as motor fuel or heating
fuel,
6. electrical energy that is used for chemical reduction and in electrolytic and
metallurgical processes
7. electrical energy used for joint production of heat and electricity in a single
8. electrical energy which is obtained by the use of renewable sources of energy,
and if the manufacturer is using the same for personal purposes: wind power,
wave power, tidal power, geo-thermal springs, solar energy or produced from
biomass or biomass products,
9. electrical energy that is used in the mineralogical processes,
10. electrical energy used for electricity production and for maintaining the ability
of electricity production.
Furthermore, within the registered activity, the exempt user can procure alcohol and
alcoholic drinks without paying excise duty for the following purposes:
1. for the production and processing of non-food products, provided that ethyl
alcohol is partly denatured,
2. for the production of medicines defined by Directive 2001/83/EC of the European
Parliament and of the Council of 6 November 2001 on the Community Code relating to medicinal products for human use (OJ L 311, 28.11.2001, p. 67),
3. for the production of vinegar falling within CN code 2209,
4. directly or as a constituent of semi-finished products for the production of
foodstuffs, filled or otherwise, provided that in each case the alcoholic content does not exceed 8.5 liters of pure alcohol per 100 kg of the product for
chocolates, and 5 liters of pure alcohol per 100 kg of the product for other
products,
5. for the production of flavors for the preparation of food products and nonalcoholic beverages with an alcohol strength not exceeding 1.2 % vol,
6. when used in a manufacturing process provided that the final product does
not contain alcohol,
7. for the preservation of preparations and the pulping of fruit,
8. for medical purposes at hospitals, medical centers and pharmacies,
9. for scientific research or teaching purposes at faculties, institutes and other scientific institutions using alcohol to perform their teaching and scientific activities.
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i
Exempt user of excise products must:
1. keep a record of purchases, production and consumption of excise products by
category and type of excise products, the tariff tag from the Combined nomenclature, quantity, and at the request of the Customs Office to submit the report on the
State of the inventory of excise products that was procured without the payment
of excise duty,
2. inform the Customs Office of any modification to the data specified in the approval,
3. provide the conditions for uninterrupted inspection.
REGISTRATION OF BUSINESS ACTIVITY AND REGISTRATION OF EXCISE DUTY PAYER
Any legal entity or natural person performing a business activity that involves excise
products shall file an application for entry into the register of excise duty payers with
the competent customs office according to their registered office or place of residence at least eight days before the beginning of the registered business activity or
before another event that constitutes an activity subject to excise duty within the
meaning of Excise Duties Act. These individuals are also required within eight days
from the day of the change, or from the day of becoming aware for the change, to
report to the competent customs office any amendment of data specified when applying for registration in the register of excise duty payers, as well as the cessation of
the activity for which the same entered the registry of excise duty payers. One can
sign in the register of excise taxpayers using the electronic services of the Customs
Administration e-Carina (e-Customs), application subsystem e-Tro{arina (e-Excise
duty) (access on the web site of the Customs Administration https://e-carina.carina.hr/etrosarine).
The obligation to submit the application for registration in the register of excise taxpayers also applies to a person carrying cigarettes for the purpose of sale to end
users, and the same has the obligation to calculate the difference of excise duty on
cigarette supplies at an increase in excise duty amount and/or when the retail price
of cigarettes increases (for example.: kiosks, shops, restaurants, and other retail outlets that hold cigarettes in order to sell them to end users), and no later than on the
day the obligation of calculating differences of excise duty incurs, that is, on the day
of the physical inventory of cigarettes.
i
Exceptionally, a person who on the basis of a contractual relationship, and without
conducting trade activities, only performs the service of retailing cigarettes to end
consumers in the name and for the account of another company that calculates and
pays the difference of excise duty on cigarette inventory on which the excise duty is
not calculated or paid according to the prescribed amount of the excise duty and last
valid retail price for a particular brand of cigarettes, does not have the obligation of
registration in the register of excise taxpayers.
All natural and legal persons that intend to possess, store, perform traffic or in any
other way factually or legally dispose of tobacco that is picked, irrespective of the degree of its processing, and which in the sense of the Excise Duties Act is not deemed
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to be a tobacco product (hereinafter: tobacco raw material), which includes the exclusive performance of financial transactions or actions that involve issuing, verifying or
certifying any bookkeeping or accounting documents, conclusion of contracts or participation in contractual relations, or issuing, verifying or certifying transport or some
other identification documents, in the capacity of a buyer, seller, broker, recipient or
sender, have the obligation of registering a business activity and registering of excise
duty payers, obtaining special approval for business operations, and separate measures of supervision, other than persons who do business with tobacco products.
i
i
Obligation of registration in the register of excise taxpayers and obtaining a special
approval for business operations with tobacco raw materials does not apply to persons who exclusively perform activities of transport of tobacco raw materials, as well
as to persons who in accordance with the special provisions have the status of the
producer of tobacco or tobacco processor, and who in all things act in accordance
with such regulations. Special regulations are deemed to be the regulations governing the handling of tobacco in the production, purchase, processing and/or tobacco
transport, except for regulations on the restriction of the use of tobacco products
(hereinafter: tobacco regulations).
Obligation of obtaining special approval for business operations with tobacco
raw materials does not apply to an authorized holder of an excise warehouses
– producer of tobacco products.
The obligation of submitting the application for the registration in the register of
excise taxpayers does not apply to persons who purchase excise products released
for consumption in the territory of the Republic of Croatia (with paid excise tax) and
who continue to sell them on the territory of the Republic of Croatia.
Obligation of filing of excise forms (including Form PUR-Application for registration
in the register of excise taxpayer), using a system of electronic data exchange
(e-Tro{arina system) does not apply to small producers of wine referred to in Article
67 and small producers of strong alcoholic beverages referred to in Article 68 of the
Excise Duties Act.
i If the excise taxpayer ceases to carry out a business activity, the competent customs
office on the request of the excise taxpayer or ex-officio deletes the excise taxpayer
from the register of excise taxpayers.
i Application for registration in the register of excise taxpayers is not to be submitted
by persons who purchased excise products released for consumption in the territory
of the Republic of Croatia, and which are dispatched to another Member State, i.e.
are being exported.
i
Any legal entity or natural person who intends to do business with energy products
and products within the tariff code KN 2710 19 91 and 2710 19 99, and products
from the tariff code KN 3826 00 90, when the same are not used as drive fuel or
heating fuel they are subject to special measures to control the production, processing, storage and movement, and such persons must file an application for the registration in the register of excise taxpayers to the competent customs office based on
their headquarters or the place of residence, and obtain special authorization/approval to do business with such fuels and products.
111
The obligation of registering in the register of excise taxpayers and obtaining a special authorization applies to every person who factually or legally in any way intends
to operate or operates with the specified fuels and products, which includes the exclusive performance of financial transactions or actions that involve issuing, verifying
or certifying any bookkeeping or accounting documents, conclusion of contracts or
participation in contractual relations or the issuing, verifying or certifying transport
or some other identification documents, in the capacity of a buyer, seller, broker,
recipient or sender of such energy products and products.
The carrier or some other person that imports and/or exports the listed energy products and products in the Republic of Croatia, i.e. from the Republic of Croatia, shall
before such import/export notify the Customs Administration – Excise Liaison Office
on the intended import, or export, and enable the Customs authorities to preform
supervision and enable uninterrupted inspection over the shipment. Carriers or other
persons which import such energy products and products need to have a copy of the
sent notification to the Customs authorities – Excise Liaison Office as proof of sending the notification (printed notifications and messages sent by electronic mail), and
where appropriate, to present the same to the competent authorities.
Regulation on submitting the application for registration in the register of excise
taxpayer and obtaining special approval for doing business with such energy products and products does not apply to persons who exclusively perform the activity of
transport of such energy products and products.
i Special control measures of movement apply to commercial transport in bulk of the
energy products within tariff codes KN 2710 19 91 and 2710 19 99 and products
from the tariff code KN 3826 00 90 (when the same are not used as drive fuel or
heating fuel). Commercial transport in bulk implies unpackaged product that are
transported in containers as a component part of the means of transport (truck, tank,
tank cart or tanker) or in ISO containers, including unpacked products that are transported in other containers with the volume greater than 210 liters.
i
EXCISE WAREHOUSE
Receiving, production, storage or other actions, as well as the dispatch of excise
products under excise-duty suspension arrangements may be performed only in the
excise warehouse having the excise warehouse-keeping authorization issued by the
competent customs house to an authorized warehouse-keeper, unless otherwise
stipulated in Excise Duties Act.
Excise approval for authorized holder of excise warehouse and for excise
warehouse is given by a competent Customs Office according to the headquarters, seat of the subsidiary, or place of residence of legal or natural persons in the Republic of Croatia, who fulfill the following conditions:
1. they carry out activities in connection with excise products, in accordance
with the prescribed conditions and have headquarters, subsidiary, or place
of residence in the Republic of Croatia,
2. they cover excise duties, tax and customs obligations on time and in full,
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3. such persons have not violated or repeatedly violated the provisions of
excise, tax or customs regulations,
4. prior to the issuance of approval, such persons have deposited insurance
payment instrument of excise duty,
5. they keep records about goods which is located in the excise warehouse
and the movement of excise products,
6. they meet the requirements for the electronic exchange of data about the
movement of excise products.
i
Excise approval for authorized holder of the excise warehouse and for the excise
warehouse is issued by the competent customs office based on a written application
by any legal or natural person that wants to do business in the system of deferred
payments of excise duty without the right to transfer it to another person.
For each subsequent opening of the excise warehouse, the authorized holder
of the excise warehouse shall submit a new request.
Authorized holder of the excise warehouse must:
1. take all necessary actions to ensure safekeeping of excise products in the excise
warehouse, monitor all actions, including shipping and receipt of excise products; determine and report to the competent customs office each and every loss
or lack of excise products; check if there are any abnormalities in the operation of
excise warehouse;
2. provide conditions for smooth inspection;
3. keep a record of the inventory of excise products by category and type of excise
products, trade name and tariff code from the Combined Nomenclature, record
of produced quantities of excise products, track the movement of excise products
for each excise warehouse and submit a daily calculation of excise duties and a
monthly report to the competent Customs Office;
4. upon completion of the movement, import into the excise warehouse and register all excise products which were received in the system of deferred payments of
excise duty;
5. inform the competent Customs Office of any modification to the data specified
in the excise approval;
6. request from the Customs Office to modify the excise approval in the case of
status changes.
If the Customs Office determines that an authorized holder of the excise
warehouse does not perform or has not performed the prescribed obligations, the same shall determine the deadline in which irregularities must be
rectified, and depending on the circumstances also take other actions in accordance with the provisions of the Excise Duties Act.
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Authorized holder of the excise warehouse has to deposit the insurance payment
instrument of excise duty, for the settlement of possible excise debt for excise products that are located in the system of deferred payments of excise duty to the Customs Administration. Exceptionally, instead of the authorized holder of excise warehouse who ships the products in the system of deferred payments of excise duty
from the Republic of Croatia in another Member State, the insurance payment instrument of excise duty can be deposited by a carrier, owner of excise products, recipient or severally two or more of such persons with the authorized holder of the
excise warehouse.
The Customs Administration determines the amount of the insurance payment instrument of excise duty for excise products that are shipped from the excise warehouse in the system of deferred payments of excise duty.
Deposit of the insurance payment instrument of excise duty is mandatory for the
dispatch of excise products in the system of deferred payments of excise duty, and for
production and storage at the request of the customs administration.
i Insurance payment instrument of excise duty is not necessary for excise products for
which the amount of the excise duty is HRK 0 and that are produced, stored and moved
within the system of deferred payments in the territory of the Republic of Croatia.
i
In the case of expiry of the excise approval, the insurance payment instrument of
excise duty can be exempted, that is dismissed only after the excise-duty for excise
products in stock and products for which the payment obligation incurred prior to
the termination of the excise approval is paid, i.e. when the obligation of payment
of excise duty on the basis of the movement of goods in the system of deferred payment can no longer arise.
i
Excise approval ceases to be valid:
1. when an authorized holder of the excise warehouse, a natural person dies,
2. with the termination of a legal person,
3. when the excise approval is returned to the Customs Office,
4. when the Customs Office revokes the excise approval.
The customs office terminates the excise approval, in particular: If the authorized
holder of the excise warehouse ceases to fulfil the conditions specified in the excise
approval; if the same does not ensure the appropriate system of control over the state
of the inventory and if the same does not create lists in the deadlines set out in the
excise approval; if the same does not submit the appropriate insurance payment instrument of excise tax, or if the same fails to deliver the deposit in the amount that
can ensure payment of the excise duty debt; if reasons and conditions based on
which the excise approval was issued cease to exist; if the approval was issued based
on incomplete or incorrect data, if the same does not remove irregularities within the
deadline given by the customs office; if the same participates in illegal actions; if the
same evades payment of excise duties.
Appeal against the revocation of the excise approval does not postpone the
execution of the decision. Customs Office may postpone the revocation of the
excise approval if the same estimates that the appeal will be adopted.
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SUBJECT OF TAXATION
The subject of excise taxation are excise products which are produced (production
also includes pumping out from the ground where the same is possible to be applied) in the Republic of Croatia, imported from the other Member State of the European Union to the Republic of Croatia, or imported from a third country to the
Republic of Croatia, and released for consumption.
Member State and the territory of a Member State is the territory of each Member
State of the European Union to which the European Union Treaty applies, with the
exception of the third territories. The European Union and the territory of the Union
means the territory of the Member States.
i The third country means any country or territory to which the European Union Treaty
does not apply. Third territories are:
a) territories that are part of the customs area of the Union: Canary islands, areas of
France stated in Article 349 and 355 Paragraph 1 of the Treaty on the functioning
of the European Union, Åland Islands and Channel Islands
b) territories that are not part of the territory of the EU area: island of Helgoland,
Büsingen territory, Ceuta, Melilla, Livigno, Campione d’Italia and the Italian part of
Lugansky Lakes,
c) Mount Athos.
i The movement of excise products to the Principality of Monaco or from it is deemed
to be the movement in the French Republic, i.e. from it, in the sovereign zone of the
United Kingdom Akrotiri and Dhekeli or from them, movement to Cyprus or from it,
in Jungholz and Mittelberg (Kleines Walsertal), or out of them is deemed to be the
movement in the Federal Republic of Germany, or from it, in or out of the San Marino
is considered to be the movement in the Italian Republic, or from it, on the Isle of
Man or from it is deemed to be the movement in the United Kingdom, or from it.
i
Import of excise products is the import of excise products in the customs territory of the European Union, unless these products, after entering the territory of the European Union, are put in a customs procedure with a delay, as
well as the release of excise products from a customs procedure with a delay.
Import of excise products is each import into the Republic of Croatia from the
territory of the other Member States of the European Union (hereinafter: the
other Member States), except with third territories.
System of deferred payments of excise duty is a tax system that applies to
receiving, production, processing, storage, performance of other actions with
excise products and dispatch of excise products to which the obligation of
payment of excise duty has been suspended, and that are not included in the
customs system of delay.
Customs procedure with a delay or treatment is any of the special procedures
laid down by the Council Regulation (EEC) No 2913/92 of 12 October 1992
on the Customs Community code (OJ 302, 19.10.1992, p. 1. – hereinafter:
Council Regulation (EEC) No. 2913/92) which refers to the customs supervision which applies to the goods which does not enjoy the status of Community goods when entering into the customs territory of the European Union,
115
in temporary accommodation, free zone or free warehouse, as well as any of
the procedures referred to in Article 84 Paragraph 1 Item a) of the Regulation.
Release in consumption id deemed to be:
– release of excise products, including illegal release, from the system of deferred payments of excise duty,
– holding of excise products outside the deferred payments system of excise
duty for which the excise duty is not calculated in accordance with the provisions of the Excise Duties Act,
– the production of excise products, including illegal production, outside the
system of deferred payment of excise duty,
– import of excise products, including illegal import, unless the same products are not immediately after import put in the system of deferred payment
of excise duty.
I. ALCOHOL AND ALCOHOLIC BEVERAGES
Alcohol and alcoholic beverages shall be deemed to include beer, wine and other
beverages obtained by fermenting except for beer and wine, intermediate products
and ethyl alcohol.
The types of alcohol and alcoholic beverages shall be determined by a tariff codes of
the Combined Nomenclature (hereinafter referred to as CN code), and on the basis of
their actual alcoholic strength by volume and actual production of alcohol in the
products (distillation, fermentation or alcohol adding).
i The actual alcoholic strength by volume is a volume percentage of alcohol measured
at the temperature of 20 °C and expressed as “% vol”.
i
Beer shall be deemed to be:
1. every product falling within CN code 2203, having an actual alcoholic strength
by volume exceeding 0.5 % vol,
2. every product that is a mixture of beer and a non-alcoholic beverage falling within CN code 2206, having an actual alcoholic strength by volume exceeding 0.5 %
vol.
Wine shall be deemed to be still and sparkling wines.
Still wines are all products falling within CN codes 2204 and 2205, with the exception of the sparkling wine, and in particular those:
1. having an actual alcoholic strength by volume exceeding 1.2 % vol but not
exceeding 15 % vol, provided that alcohol contained in the finished product
is entirely of fermented origin,
2. having an actual alcoholic strength by volume exceeding 15 % vol but not exceeding 18 % vol, provided that they are produced without any enrichment and
that alcohol contained in the finished product is entirely of fermented origin.
The sparkling wines shall be all products falling within CN codes 2204 10, 2204 21
10, 2204 29 10 and 2205:
116
1. contained in bottles with mushroom stoppers held in place in a special way,
or which have an excess pressure due to carbon dioxide in solution of three
bar or more,
2. having an actual alcoholic strength by volume exceeding 1.2 % vol but not
exceeding 15 % vol, provided that alcohol contained in the finished product
is entirely of fermented origin.
Other beverages obtained by fermenting other than beer and wine shall
include:
1. other still beverages obtained by fermenting, other than beer and wine, and
2. other sparkling beverages obtained by fermenting, other than beer and wine.
Other still beverages obtained by fermenting other than beer and wine shall include
all products falling within CN codes 2204 and 2205 and the products falling within
CN code 2206 other than the and the other sparkling beverages obtained by fermenting, and in particular:
1. having an actual alcoholic strength by volume exceeding 1.2 % vol, but not exceeding 10 % vol,
2. having an actual alcoholic strength by volume exceeding 10% vol, but not exceeding 15 % vol, provided that alcohol contained in the finished product is entirely of
fermented origin.
i Other sparkling beverages obtained by fermenting other than beer and wine shall be
all products falling within CN codes 2206 00 31 and 2206 00 39 and the products
falling within CN codes 2204 10, 2204 21 10, 2204 29 10 and 2205, and which are
not enumerated in the paragraph “still and sparkling wines”, and that are:
1. contained in bottles with mushroom stoppers held in place in a special way, or which
have an excess pressure due to carbon dioxide in solution of three bar or more,
2. having an actual alcoholic strength by volume exceeding 1.2 % vol, but not exceeding 13 % vol,
3. having an actual alcoholic strength by volume exceeding 13 % vol, but not exceeding 15 % vol, provided that alcohol contained in the finished product is entirely of
fermented origin.
i
Intermediate products shall be all the products having an actual alcoholic strength
by volume exceeding 1.2 % vol, but not exceeding 22 % vol and falling within CN
codes 2204, 2205 and 2206, and which are not mentioned above (such as cherry,
vermouth, port, pro{ek)
Ethyl alcohol shall be deemed to include:
1. all products falling within CN codes 2207 (ethyl alcohol and denatured alcohol) and 2208 (brandy, cognac, whiskey, rum, vodka, liqueurs, etc.), having
an actual alcoholic strength by volume exceeding 1.2 % vol, even when those
products form part of a product that falls within another chapter of the Combined Nomenclature,
2. products of CN codes 2204, 2205 and 2206 having an actual alcoholic
strength exceeding 22 % vol,
3. potable spirits containing products, whether in solution or not.
Denatured alcohol shall be deemed to be alcohol which has been mixed during the
production process with the prescribed substances in the prescribed amounts, so
117
that in further processing denaturants cannot be easily eliminated and alcohol suitable for ingestion cannot be produced.
Alcohol may be denatured only at the excise warehouse of the producer that has also
been issued the authorization for alcohol denaturation by the competent customs house.
The excise warehouse where alcohol is to be denatured must be fitted with such
equipment that will ensure alcohol denaturation by means of the prescribed substances and in the prescribed manner.
i Authorized holder of the excise warehouse – manufacturer of denatured alcohol
must keep a record of denaturing in which he/she must specify the quantity of alcohol and the quantity of prescribed funds that were used for the denaturing process,
the quantity of the produced and dispatched denatured alcohol, expressed in liters of
pure alcohol, and record of buyers.
i
Marking, measurement and release for circulation of alcohol and alcoholic
beverages
All beverages obtained by fermenting except for beer and wine, intermediate products and ethyl alcohol in packaging from 0.25 to 5.00 liters, with the exception of
the products falling within CN code 2207 and the products regulated by the Act on
Wine, must be marked with a special stamp of the Ministry of Finance of the Republic of Croatia. Besides the wording “Republic of Croatia – Ministry of Finance”, the
stamps must have a quantity marking, an alphabetical marking of the series and the
number of the series. The specified must be done for products:
– which have been produced or introduced or imported and released for consumption in Croatia,
– which are dispatched to a location on which the same leave the territory of
the EU, or which are exported or sold to another Member State of the EU, or
– which are sold on ships and airplanes during voyage or flight to third countries or third territories, and to passengers in harbors that are open to international traffic, who are travelling to third countries or third territories with
the presentation of their boarding tickets.
The above-mentioned may be released for circulation only in bottles or other appropriate containers in accordance with special regulations governing their release for
circulation. The excise duty payers shall file an application for the printing of the
special stamps with the competent customs house. The special stamp must be glued
over the bottle cork so that it is damaged when the bottle is opened.
i Exceptionally, the enumerated products that are delivered to the location on which
alcohol and alcoholic beverages leave the territory of the Republic of Croatia or are
shipped to another Member State, may be labeled with a stamp that is required by
the importing state or some other Member State, that is without a stamp, which the
dispatcher must document to the competent customs office with the evidence of
takeover of the stamps or other appropriate document.
i
Exceptionally, all products included in the tariff codes KN 2207 and 2208 with alcoholic strength by volume of more than 1.2% vol that are an integral part of a product
118
classified in the second chapter of the Combined Nomenclature, do not have to be
marked with a special stamp of the Ministry of Finance of the Republic of Croatia.
Unauthorized production of stamps, their unauthorized printing and owning and
placing the same in circulation is deemed to be illegal, as well as deliberate damage
of stamps of the Ministry of Finance of the Republic of Croatia.
Facilities for the production and storage of alcohol and alcoholic beverages
The facilities for the production and storage of alcohol and alcoholic beverages must
be fitted with the measuring instruments prescribed by the national authority competent for metrology, as well as vessels and containers which have a proper authenticated seal or a proper certificate of authentication concerning the satisfaction of
the metrology requirements issued by the national authority for standardization and
metrology.
Besides additional sealing of the measuring instruments the competent customs
house shall also provide lead seals for the ancillary piping, the fittings, the control
panels, the fuses and all other things connected with the measurement of the quantities of alcohol and alcoholic beverages produced. Repairs, replacements and other
activities requiring the removal of the lead seals affixed by the competent customs
house may be carried out only in the presence of an authorized customs officer. Each
time the lead seal is removed or affixed the authorized customs officer shall compose
a memorandum about the reasons for removing the lead seal and enter the state of
the dials of the counter on the measuring instrument.
A copy of the memorandum shall be given to the excise duty payer, and the original
copy shall be lodged at the competent customs house.
i The sellers (producers, importers and traders) of devices for the production of alcohol
or alcoholic beverages shall be bound to inform the competent customs house about
the purchasers or end consumers of such devices according to the registered office or
residence of the purchaser, supplying it with a copy of the sales invoice.
i Legal entities and natural persons that buy such devices for the production of alcohol
or alcoholic beverages (and not for resale) shall be considered the end consumers.
i
II. TOBACCO PRODUCTS
The tobacco products shall be deemed to include: cigarettes, cigars, cigarillos and
smoking tobacco (finely cut tobacco for cigarette bending and other tobacco for
smoking).
Cigarettes shall be deemed to be:
1. rolls of tobacco suitable for smoking other than cigars and cigarillos within the meaning of the provisions of Excise Duties Act,
2. rolls of tobacco placed, through a simple non-industrial process, in cigarette tubes or wrapped in rolling paper,
3. rolls of tobacco wrapped, through a simple non-industrial process in rolling paper.
119
Cigarettes shall also be deemed to include products that are made in part or in
whole of substances other than tobacco and meet above-mentioned requirements under Items 1 to 3.
Cigars and cigarillos are deemed to be rolls of tobacco suitable for smoking,
that are based on their properties and common consumer expectations intended only for smoking:
1. with an outer wrapper of natural tobacco,
2. with a threshed blend filler and with an outer wrapper of the normal color
of a cigar, of reconstituted tobacco, covering the product in full, including
where appropriate the filter but not, in the case of tipped cigars, the tip,
where the unit weight, not including filter or mouthpiece, is not less than
2.3 g and not more than 10 g and the circumference over at least one
third of the length is not less than 34 mm.
Cigarillos are cigars that meet the above-stated conditions and the net weight
of which does not exceed 3.00 kilograms per 1000 pieces. The products that
partly contain substances other than tobacco and meet the above-mentioned
requirements shall also be considered cigars and cigarillos.
Smoking tobacco shall be deemed to be:
1. tobacco which has been cut or otherwise split, twisted or pressed into
blocks, suitable for smoking without further industrial processing,
2. tobacco refuse suitable for smoking and released for retail sales, other
than the cigarettes, cigars and cigarillos. Tobacco waste is deemed to be
remnants of tobacco leaves and resulting by-products of tobacco processing or manufacturing, and of tobacco products processing.
Smoking tobacco shall also include fine-cut tobacco for the rolling of cigarettes in
which more than 25 per cent by weight of the tobacco particles have a cut width of
more than 1.5 mm, when intended to be sold for the rolling of cigarettes.
i Smoking tobacco shall also include the products partly or entirely containing substances other than tobacco and meeting the stipulated requirements.
i
Traffic in tobacco products is allowed only in packages for retail sale in accordance with special regulations. Required markings must be specified on packaging for retail sale of tobacco products in accordance with special regulations. Substances that are not tobacco products may not be added, and packaging must have the tobacco stamp of the Ministry of Finance of the Republic
of Croatia (see chapter EXCISE DUTY BASE AND AMOUNT OF EXCISE DUTY
– II. TOBACCO PRODUCTS).
i
Products that do not contain tobacco and are used exclusively for medical purposes
and are defined as a medicine according to special regulations are not deemed to be
tobacco products.
120
If it is determined that a person has been acting in violation of the Excise Duties Act
or tobacco regulations, and if it has as a consequence the illegal production, processing, possession, storage, transport or handling tobacco raw material in any other way deemed unlawful de facto or de iure, the tobacco raw material in question
will be considered instrumental to illegal conduct and intended for the purpose of
cigarette rolling, and the obligation of calculation and payment of excise duty will
apply to any such quantity of tobacco raw material.
i
Calculation of excise duty shall be performed according to the excise duty base and
the amount of excise duty which is prescribed on fine-cut tobacco for rolling cigarettes.
III. ENERGY PRODUCTS AND ELECTRICITY
The types of energy products and electricity shall be determined by a code of the
Combined Nomenclature, according to Article 2 Paragraph 5 of the Directive
2003/96/ EC, or based on the characteristics of individual products. The following
shall be deemed energy products:
1. the products falling within CN codes 2701, 2702 and 2704 to 2715
2. the products falling within CN codes 2901 and 2902,
3. the products falling within tariff subheading KN 3403,
4. the products falling within CN code 3811,
5. the products falling within CN code 3817.
The following shall also be deemed energy products provided that they are intended
to be used as an motor fuel, additive or extender added to motor fuels or as a heating fuel:
1. the products falling within CN codes 1507 to 1518,
2. the products falling within CN code 2905 11 00 which are not of synthetic
origin,
3. the products falling within CN code 3824 90 99.
The following shall also be deemed energy products:
1. other products intended for consumption, offered for sale or used as an motor fuel,
2. additives or fillers added to the motor fuel intended for consumption, offered
for sale or used as such,
3. other hydro carbonates intended for consumption, offered for sale or used
for heating, with the exception of peat or biomass.
In national excise regulations, tariff codes of the combined nomenclature defined in
the directive from 2003 are implemented, and some tariff codes have been subsequently amended. Below is their correlation with the current tariff codes:
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Excise duties Act
Article 83 Paragraph 2 Items
1.
products falling within CN codes KN 2701,
2702 and 2704 to 2715
2.
products falling within CN codes KN 2901 and
2902
3.
products falling within CN code 3403
products falling within CN code KN 3811
5.
products falling within CN code KN 3817
1.
products falling within CN codes KN 1507 to
1518
2.
products falling within CN code KN 2905 11 00
which are not of synthetic origin,
products falling within CN code KN 3824 90 99
1.
Motor gasoline used as propulsion fuels:
1.1. Leaded petrol falling within CN codes KN 2710
1 1 31, 2710 1 1 51, 2710 1 1 59
1.2. Unleaded petrol falling within CN codes 2710
11 31, 2710 11 41, 2710 11 45, 2710 11 49
2.
Gas oil falling within CN codes 2710 19 41 to
271019 49
3.
Kerosene – paraffin oil falling within CN codes
KN 2710 19 21 and 2710 19 25
4.
LPG – liquid petroleum gas falling within CN
codes 2711 12 11 to 2711 19 00
5.
Heavy fuel oil falling within 1000 kg net weight
CN codes 2710 19 61 to 2710 19 69
6.
Coal and coke falling within CN codes 2711 11
00, 271 1 21 00 and 271 1 29 00
7.
Coal and coke falling within CN codes 2701,
2702 and 2704
8.
Electricity falling within CN code 2716
1.
KN 2707 10, 2707 20, 2707 30 and 2707 50
2.
3.
4.
“Combined nomenclature” for 2015 (Implementing Commission Regulation No.
1101/2014 of 16 October 2014 published in
the OJ L312/14 of October 31, 2014)
KN 2701, 2702 and 2704 to 2715
KN 2901 and 2902,
KN 3403
KN 3811
KN 3817
KN 1507 to 1518
KN 2905 11 00 which are not of
synthetic origin
KN 3826 00, 3824 90 87, 3824 90 92,
3824 90 92, 3824 90 93, 3824 90 96
KN 2710 12 31, 2710 12 51,
2710 12 59
KN 2710 12 31, 2710 12 41,
2710 12 45, 2710 12 49
KN 2710 19 43 to 2710 19 48 and
2710 20 1 1 to 2710 20 19
KN 2710 19 21 and 2710 19 25,
KN 2711 12 11 to 2711 19 00
KN 2710 19 62 to 2710 19 68 and
2710 20 31 to 2710 20 39
KN 2711 11 00, 2711 21 00 and
2711 29 00,
KN 2701, 2702 and 2704,
KN 2716
KN 2707 10, 2707 20, 2707 30 and
2707 50
KN 2710 11 to 2710 19 69
KN 2710 12 to 2710 19 68 and
2710 20 to 2710 20 39
KN 2710 11 21, 2710 1 1 25 and 2710 19 29 KN 2710 12 21, 2710 12 25 and
2710 19 29
KN 2711 except KN 271 1 1 1, 271 1 21 and KN 2711 except KN 271 1 1 1,
2711 29
271 1 21 and 2711 29
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Excise duties Act
5.
6.
KN 2901 10
KN 2902 20, 2902 30, 2902 41, 2902 42,
2902 43 and 2902 44
7.
KN 3811 11 10, 3811 11 90, 3811 19 00 and
3811 90 00
Article 85 Paragraph 3
“Combined nomenclature” for 2015 (Implementing Commission Regulation No.
1101/2014 of 16 October 2014 published in
the OJ L312/14 of October 31, 2014)
KN 2901 10
KN 2902 20, 2902 30, 2902 41,
2902 42, 2902 43 and 2902 44
KN 3811 11 10, 3811 11 90,
3811 19 00 and 3811 90 00
CN codes from Article 83 Paragraph 3 are applicable
Article 87 Paragraph 1
1.
Gas oil falling within CN codes 2710 19 41 to KN 2710 19 43 to 2710 19 48 and
271019 49
2710 20 1 1 to 2710 20 19
Article 91a Paragraph 1
1.
KN 2710 19 91, 2710 19 99 and 3826 00 90 KN 2710 19 91, 2710 19 99 and
3826 00 90
EXEMPTIONS FROM EXCISE DUTY
I. GENERAL PROVISIONS
Excise duty shall not be payable on excise products intended for:
1. office needs of diplomatic and consular missions and special missions accredited in Croatia, on condition of reciprocity, with the exception of consular
missions lead by honorary consular officers,
2. personal needs of foreign staff of diplomatic missions and consular posts and
special missions accredited in Croatia,
3. needs of international organizations, if so stipulated in international agreements applying to Croatia,
4. personal needs of foreign staff of international organizations, if so stipulated
in international agreement applying to Croatia,
5. the consumption in accordance with an international agreement concluded
between Croatia and another state or an international organization, if such
an agreement provides for an exemption from VAT in the case of supply of
excise products,
6. the needs of the armed forces of other state parties to the North Atlantic Alliance or the civilian staff accompanying them or for supplying their cafeterias
and canteens.
The exemption from excise duty referred to in Items 1 and 2 of shall be granted based
on certification by the ministry competent for foreign affairs, and the exemptions
referred to in Items 3, 4, 5 and 6 based on certification of the competent state authority responsible for the implementation of the particular international agreement.
i If, under an international agreement, the exemption can be granted only on condition of reciprocity, the ministry competent for foreign affairs shall confirm that the
condition of reciprocity is satisfied.
i The exemptions from excise duty referred to in Items 2 and 4 may not be granted to
the citizens of Croatia or foreign nationals having their usual residence in Croatia.
i
123
The excise products on which no excise duty is payable may only be disposed
of subject to previous notification to the competent customs house and payment of excise duty.
Excise duty shall not be payable on the excise products:
1. which are supplied from an excise warehouse to customs warehouses for the
purpose of supplying ships and aircraft on international routes,
2. which are supplied from an excise warehouse to the facilities of a customs
warehouse located at airports or harbors opened to international traffic for
the purpose of being sold to passengers travelling to another state against
presentation of a boarding pass,
3. which are brought by a traveler from another state as part of personal luggage and are exempt from customs duties in accordance with the customs
regulations,
4. which a natural person from another state sends to another natural person in
the Republic of Croatia in small packages free of charge, which are not of a
commercial nature and are exempt from customs duties in accordance with
the customs regulations.
The authorized excise warehouse-keeper and the exempt user are exempt
from the payment of excise duty on the excise products:
1. which are used as samples in the analyses for trial production, or for scientific
purposes;
2. which are used for quality control,
3. which are used for the purpose of excise monitoring,
4. which have been destroyed under customs supervision,
5. on which losses or shortages have been established, if proven that such loss/
shortage can be ascribed to unforeseen events or force majeure, or that losses or shortages inseparably related to the characteristics of the goods have
occurred during the production, warehousing and transport of excise products and if recognized by the competent customs house.
Exemption from payment of tax for the diplomatic and consular offices,
institutions and bodies of the European Union and international organizations (see Chapter 1.3 Value added tax, section “Exemptions”)
II. ALCOHOL AND ALCOHOLIC BEVERAGES
Excise duty on alcohol and alcoholic beverages shall not be levied:
1. on denatured alcohol deemed to be alcohol denatured by using the prescribed means of denaturation prescribed in the Republic of Croatia,
2. on denatured alcohol imported as denatured alcohol from another state, under the condition that it is completely denatured by using the prescribed
means of denaturation prescribed in the Republic of Croatia,
3. on denatured alcohol that is deemed to be completely denatured via the prescribed means of denaturing in accordance with the terms of the other Member States, and which are published in Commission Regulation (EC) no.
124
4.
5.
6.
7.
8.
9.
10.
11.
12.
i
3199/93 of 22 November 1993 on the mutual recognition of procedures for
the complete denaturing of alcohol in order to be exempted of excise duty (OJ
L 288, 23.11.1993, p. 12),
when used for the production and processing of non-food products, provided
that ethyl alcohol is partly denatured,
when used for the production of medicines defined by Directive 2001/83/EC
of the European Parliament and of the Council of 6 November 2001 on the
Community Code relating to medicinal products for human use (OJ L 311,
28.11.2001, p. 67),
when used for the production of vinegar falling within CN code 2209,
when used either directly or as a constituent of semi-finished products for the
production of foodstuffs, filled or otherwise, provided that in each case the
alcoholic content does not exceed 8.5 liters of pure alcohol per 100 kg of the
product for chocolates, and 5 liters of pure alcohol per 100 kg of the product
for other products,
when used for the production of flavors for the preparation of foodstuffs and
non-alcoholic beverages with an alcohol strength not exceeding 1.2 % vol,
when used in a manufacturing process provided that the final product does
not contain alcohol,
for the preservation of preparations and the pulping of fruit,
when used for medical purposes at hospitals, medical centers and pharmacies,
when used for scientific research or teaching purposes at faculties, institutes
and other scientific institutions using alcohol to perform their teaching and
scientific activities.
If the exemption from payment of excise duty on alcohol which is contained in the
products referred to in Items 4, 5, 6, 7, 8, 9, 10, 11 and 12, the same is equally applied
during import from third countries, i.e. when importing from the other Member State.
13. on the beer produced by a private individual who is the agricultural land
owner from barley grown for his/her own consumption and consumption by
the members of his/her household or their guests, provided that no sale is
involved,
14. on the wine and other beverages obtained by fermenting other than beer and
wine, produced by a private individual, if used for his/her own consumption
and the consumption by the members of his/her own household or guests
provided that no sale is involved.
i
Small producers of strong alcoholic beverages shall be exempted from the requirements
set out in the provisions of general conditions for operation of excise warehouses.
III. TOBACCO PRODUCTS
Excise duty on tobacco products shall not be paid on:
1. the products intended exclusively for scientific research and product quality
testing, subject to the authorization of the Customs Administration.
125
2. on cigarettes that are produced for personal by hand or some simple device
and from tobacco products on which excise duty is paid, and the same are
not intended for sale and they are not released for sale.
i
Simple devices are devices for twisting or filling cigarettes that are not suitable for
commercial production of cigarettes.
IV. ENERGY PRODUCTS AND ELECTRICITY
The use of energy products and electricity for purposes for which excise duty shall
not be paid on:
1. the energy products dispatched and used as an fuel in air navigation, with the
exception of private pleasure flights,
i
Private pleasure flights shall be deemed to mean personal use of aircraft by its owner
or by a natural person or legal entity who enjoys its use either through hire or through
any other means, for other than commercial purposes and in particular other than for
the carriage of passengers or goods or for the supply of services for consideration or
for the purposes of public authorities.
2. the energy products supplied for use as an fuel in international navigation,
with the exception of private pleasure floating objects and vessels,
i
Private pleasure floating objects and vessels shall be deemed to be all floating objects
and vessels used by its owner or used by natural persons or legal entities who enjoys
its use either through hire or through any other means, for other than commercial
purposes and in particular other than for the carriage of passengers or goods or the
supply of services for consideration or for the purposes of public authorities.
3. energy products used by the producer of the energy products and electricity
in its premises for further processing or for the production of other energy
products and electricity, unless they are used as motor fuel for vehicles,
4. energy products used for joint production of heat and electricity in a single
5. energy products that are used in mineralogical processes,
i
Mineralogical processes are the processes classified in the NACE nomenclature under
the label “DI 26 NACE manufacture of other non-metallic mineral products” from
Council Regulation (EC) No 3037/90 of October 9, 1990, about statistical classification of economic activities in the Union (OJ L No. 293 of 24.10.1990, p. 1, with
modifications and amendments).
6. dual use of energy products – if they are used as fuel for heating, and at the
same time, for a purpose that is not drive or heating (use of energy products
for chemical reduction, in electrolytic and metallurgical processes),
7. energy products used for other purposes other than motor fuel or heating fuel,
8. natural gas that is used in households, and natural gas, which is used to drive
the vehicle.
126
Excise duty shall not be paid on:
1. energy products released in the consumption in another Member State which
are contained in the standard tanks of commercial motor vehicles and are
intended for use as a fuel in such vehicles, and are not intended for resale,
2. energy products that are in special containers, and which come from other
Member States, and the same are intended for a specific use for the operation
of supply system of such containers during transport.
Excise duty is not paid on electricity:
1. that is used for chemical reduction and in electrolytic and metallurgical processes
2. that is used for joint production of heat and electricity in a single process
(cogeneration),
3. which is obtained by the use of renewable sources of energy, and if the manufacturer is using the same for personal purposes: wind power, wave power,
tidal power, geo-thermal springs, solar energy or produced from biomass or
biomass products,
4. that is used in the mineralogical processes,
5. that is used in households,
6. that is used to generate electricity, and to maintain the ability of electricity
production.
EXCISE DUTY BASE AND AMOUNT OF EXCISE DUTY
I. ALCOHOL AND ALCOHOLIC BEVERAGES
Excise product
Excise duty base
1 % of pure alcohol in one hectoliter of
the finished product
Still and sparkling wines
one hectoliter of the finished product
Other beverages obtained by fer- one hectoliter of the finished product
menting other than beer and wine
Intermediate products containing one hectoliter of the finished product
less than 15% vol of pure alcohol
Intermediate products containing one hectoliter of the finished product
15% vol of pure alcohol or more
Ethyl alcohol
1 hl of pure alcohol expressed as volume
percentage measured at 20° C
Amount of excise
duty (in HRK)
Beer
i
40.00
0.00
0.00
500.00
800.00
5,300.00
Small producers of strong alcoholic beverages shall be liable to pay excise duty if they
produce more than 20 liters of pure alcohol a year per household depending on the
capacity of the still. Small producers of strong alcoholic beverages are liable to pay
excise duty annually and in a lump sum based on the volume of the still. Excise duty
payable in respect of each still with a capacity of 40 to 100 liters shall be HRK 100.00,
and in respect of stills with a capacity of over 100 liters shall be HRK 200.00. If a small
producer of strong alcoholic drinks produces a strong alcoholic drink in quantity
greater than 20 liters of pure alcohol, the same may not be sold, and for the difference in the quantity of the produced strong alcoholic beverage, excise duty has to be
calculated and paid, as prescribed for ethyl alcohol.
127
i
Excise duty on beer produced by small independent breweries and which is released
in consumption in the territory of the Republic of Croatia is to be paid for the 1%
volume share of the actual alcohol element contained in a single hectoliter of the
finished product, and that:
For annual production of beer in hectoliters
Amount of excise duty (in HRK)
< 5000
5001 – 25,000
25,001 – 75,000
75,001 – 125,000
20.00
22.00
24.00
26.00
If, during the current calendar year, a small independent brewery produces a quantity of
beer higher than the approved amount, the approval given by the competent customs
office for business in the status of a small independent brewery will be terminated, and
to the difference between the approved amount and the real beer quantity produced,
the excise duty is calculated in the amount of HRK 40.00 for each percentage of volume
share of the actual alcohol contained in a single g of the finished product.
Marking of alcoholic beverages with stamps
Other beverages obtained by fermentation, intermediates and ethyl alcohol in packaging from 0.25 up to 5.00 liters which are produced or were made or imported and
released for consumption in the Republic of Croatia, which are shipped to locations
from where the same leave the territory of the EU, which are shipped to another
Member State, and which are sold on ships and airplanes during the voyage or flight
in the third countries or third territories, and travelers in piers that are open to international traffic travelling to third countries or third territories upon presentation of a
boarding ticket, must be marked with a special stamp (hereinafter: stamp) of the
Ministry of Finance of the Republic of Croatia.
Enumerated products produced in commercial products by producers of ethyl alcohol, intermediates and other beverages obtained by fermentation and in released in
consumption in the Republic of Croatia, and that are intended for dispatch to another Member State or shipped to locations from which they leave the territory of the
European Union, must be marked with stamps of the Ministry of Finance of the Republic of Croatia.
i Enumerated products do not have to be marked with a stamp of the Ministry of Finance of the Republic of Croatia if they were not produced in the Republic of Croatia,
and next recipients carry them from another Member State or import them:
1. diplomatic and consular missions and special missions accredited in Croatia, on
condition of reciprocity, with the exception of consular missions lead by honorary
consular officers,
2. foreign staff of diplomatic missions and consular posts and special missions accredited in Croatia,
3. international organizations, if so stipulated in international agreements applying
to Croatia,
4. international organizations, if so stipulated in international agreements applying
to Croatia,
i
128
5. third countries and international organizations in accordance with an international agreement concluded between the same and Croatia, if such an agreement
provides for an exemption from VAT in the case of supply of excise products,
6. armed forces of any of the Member States of the NATO Alliance and their accompanying civilian personnel, or to supply their cafeterias and restaurants.
Other beverages obtained by fermentation, intermediates and ethyl alcohol (in the
packaging of 0.25 to 5.00 liters) must be marked with stamps that in front of the
volume label and the number of series also have the following series letter markings:
» D « – for all products that are produce and released in consumption on the
territory of the Republic of Croatia, at the time of release for consumption in
the Republic of Croatia,
» U « – for all imported and/or carried in products that are released in consumption on the territory of the Republic of Croatia, at the time of release for
consumption in the Republic of Croatia,
» E « – for all products which are exported and/or carried out from the Republic of Croatia, at the time of dispatch to another Member State or to the location where such products leave the territory of the EU,
» P « – products that are produced in the Republic of Croatia, and are intended for trial production, i.e. test mark
Enumerated products which were produced for commercial purposes by ethyl alcohol producers, intermediates and other beverages obtained by fermenting and that
were released for the consumption in the Republic of Croatia, and are intended for
shipment to an authorized holder of excise warehouse who sells them to passengers
in segregated retail outlets of excise warehouses at airports who travel to another
Member State or in a third country or third territory, do not need to be marked with
a stamp of the Ministry of Finance of the Republic of Croatia.
Registered recipient and occasionally registered recipient can label ethyl alcohol, intermediates and other beverages derived from fermenting with a stamp of the Ministry
of Finance of the Republic of Croatia at the location of the receipt of excise products
specified in the authorization for the registered recipient, i.e. the authorization for an
occasional registered recipient. When such products are being shipped from one excise
warehouse to the other in order to be sold to travelers in segregated retail outlets of
the excise warehouse in airports who travel to another Member State or in a third
country or third territory upon presenting a boarding ticker, do not need to be marked
with a stamp of the Ministry of Finance of the Republic of Croatia.
i
With the stamp of the Ministry of Finance of the Republic of Croatia do not have to
be marked:
1. products falling within CN code KN 2207,
2. products defined by the Wine Act,
3. products included in the tariff codes KN 2207 and 2208 with volume alcoholic
strength of more than 1.2% vol that are an integral part of a product classified in
the second chapter of the Combined Nomenclature.
129
Products that are being shipped to another Member State, or to the location where
they leave the territory of the EU, must be marked with stamps that consist the letter
«E». Those products being exported may, by way of exception, be marked with a
mark required by the importing country or have no marks, in which case the exporter has to present the Customs Administration with the proof of the stamps’
takeover or another appropriate document.
II. TOBACCO PRODUCTS
Excise product
1
Excise duty base
1000 pieces
1 kg
of the product
of the product
2
3
Retail
price
4
Amount of the excise duty
Specific
Proportional
excise duty
excise duty
5
6
Cigarettes
Yes
—
Yes
HRK 230.00
Cigars
Cigarillos
Fine-cut tobacco
for bending of cigarettes
Other smoking tobacco
Yes
Yes
—
—
—
Yes
—
—
—
HRK 600.00
HRK 600.00
HRK 550.00
38% of the
retail price
—
—
—
—
Yes
—
HRK 500.00
—
The minimum excise duty on cigarettes sold at a price lower than the retail selling
price for cigarettes of the price category most in demand shall be HRK 648.00 for
1000 pieces.
In the part concerning the taxation of tobacco products Croatia complies with the
acquis communautaire, more specifically the Council Directive 2011/64/EU of 21
June 2011 on the structure and rates of excise taxes that apply to processed tobacco
(except in the part concerning reaching the prescribed minimum excise tax on cigarettes, for which the Republic of Croatia, during accession negotiations, was granted
a transitional period until 31 December 2017 for gradually reaching the minimum
excise duty as stipulated by the Directive. The share of total excise tax must amount
to 60% of the weighted average retail-selling price (WAP) for cigarettes released for
consumption, and the total excise tax to EUR 90.00 per 1000 pieces of cigarettes,
regardless of the WAP.
i
When calculating the excise tax on cigarettes, two cigarettes is considered when the
roll of tobacco without a filter or mouthpiece is longer than 8 cm, but no longer than
11 cm, three when the roll of tobacco without a filter or mouthpiece is longer than
11 cm, but not longer than 14 cm, i.e. for every 3 cm in length a tobacco roll without
a filter or mouthpiece increases by one cigarette.
Exceptionally, for the purposes of calculating and paying excise duties on cigarettes
whose retail price is not declared, the proportional excise duty is calculated in relation to the highest declared retail price of cigarettes in the Republic of Croatia.
130
Determination of the retail-selling price
The retail-selling price of tobacco products released for consumption in the Republic
of Croatia shall be the price determined by the authorized excise warehouse-keeper
and the importer in the Republic of Croatia according to the brands of tobacco products. The retail-selling price shall be also including excise duty, customs duty and VAT.
The retail price of tobacco products is declared based on data on reported retail
prices for a tobacco brand via the Form P-MPC through the application e-Tro{arina.
Exceptionally, the Form P-MPC can be filed in writing if a two-day deadline for reporting an increase in the retail price of cigarettes is applied. If a two-day deadline
for reporting an increase in the retail price of cigarettes is applied, the report shall be
filed not later than by the end of office hours of the Central Office of the Customs
Administration on the expiration day of the stated deadline.
A manufacturer is a person based in the European Union that produces tobacco
products which are intended for (or prepared for) retail sale. A manufacturer with
headquarters in another Member State can convey in writing the right to determine
retail price to their representative or an authorized intermediary in the Republic of
Croatia who can receive tobacco products in the system of deferred payments of excise duties from other Member States.
i Persons who receive from other Member States and importers of certain brands of tobacco products that do not have a written authorization as holders of intellectual property rights on a trademark of tobacco products can apply for receiving tobacco stamps
at a retail price declared by the rights holder or a person on the basis of authorization
by holders of intellectual property rights on that trademark of tobacco products.
i
Manufacturers, their representatives, or authorized intermediaries in the Republic of Croatia and importers (except authorized holders of excise warehouses who perform sales in separate retail outlets of excise warehouses at
airports to passengers travelling to another Member State) must report the
retail price for each separate product to the Central Office of the Customs
Administration 15 days prior to releasing tobacco products for consumption,
i.e. when an increase in the retail price of cigarettes is reported – 2 days from
the date of entry into force of the regulation by the Government of the Republic of Croatia which increases the amount of the excise tax on cigarettes.
If a two-day deadline for reporting an increase in the retail price of cigarettes
is applied, the report shall be filed not later than by the end of office hours of
the Central Office of the Customs Administration on the expiration day of the
stated deadline.
The sale of tobacco products at retail prices higher than declared is prohibited.
131
Marking of tobacco products with stamps
Tobacco stamps of the Ministry of Finance must be labeled on the tobacco products
that are:
produced, imported and released for consumption in Republic of Croatia,
imported or taken into from other Member States of the European Union and
released for consumption in the Republic of Croatia,
produced in the Republic of Croatia and shipped to another Member State of
the European Union or to a point where they leave the territory of the European Union
sold on ships and aircraft during voyage at sea or flight to a third country or
territory, or sold to passengers in piers open to international traffic who are
travelling to a third country or territory upon presenting a boarding ticket,
produced in the Republic of Croatia and dispatched to another Member State
of the European Union with the exemption from paying excise duties in accordance with Article 29 of the EDA.
A tobacco stamp for marking tobacco products released for consumption in the
Republic of Croatia contain:
1. Alphabetical markings of taxable items:
 
«C» – for cigarettes
 
«CR» – for cigars
 
«CL» – for cigarillos
 
«SR» – for fine-cut tobacco
 
«DP» – for other smoking tobacco
 
«P» – for tobacco products produced in the Republic of Croatia that are intended for trial production and quality analysis
2. Numeration/number
3. Highly protected hologram
4. The text «Republic of Croatia – Ministry of Finance»
Before alphabetical markings, tobacco stamps must also contain the following printed letters and words:
“for export” in Croatian or a foreign language, and the letter “E” – for tobacco
products manufactured in the Republic of Croatia when, in the system of deferred payments of excise duties, they are shipped to a location whereby tobacco products leave the territory of the EU, or are sold on ships and aircraft
during voyage or flight to a third country or territory, or are sold to passengers
in piers open to international traffic who are travelling to a third country or territory upon presenting a boarding ticket. Exceptionally, tobacco products may
be marked by a stamp required by the importing country or no stamp at all, in
which case the exporter must present evidence to the competent customs office
that the stamps were received or present another relevant document,
«EU» – for tobacco products manufactured in the Republic of Croatia when,
in the system of deferred payments of excise duties, they are dispatched to
another Member State, including shipping with the exemption from payment
of excise duties in accordance with Article 29 of the Excise Duties Act. Exceptionally, tobacco products may be marked by a stamp required by another
Member State or no stamp at all, in which case the exporter must present
132
evidence to the competent customs office that the stamps were received or
present another relevant document,
«U» – for tobacco products imported for the intention of releasing them for
consumption in the Republic of Croatia according to Article 78 Paragraphs 4
and 5 of the Excise Duties Act.
i
At the time of release for consumption in the Republic of Croatia a tobacco stamp
must mark the following items:
1. each cigar per piece if sold individually,
2. a multipack containing more than one cigar if the packaging as such is sold to an
end consumer in domestic traffic.
Notwithstanding the foregoing, cigars sold individually do not have to be marked
with a tobacco stamp:
1. if cigars are sold directly from their original multipack packaging which includes more than one cigar and is marked by a tobacco stamp that has to be
broken when opening the original multipack packaging so that the numbering on the stamp remains visible, and
2. if for each delivery of the original multipack packaging to a store, i.e. in
wholesale distribution to places where they will be sold at retail an invoice or
other commercial document is issued which, among other things, must contain:
– the trade name of the product/the number of the tobacco stamp/the number of cigars in the packaging, and
– an indication of the place where they will be sold at retail.
If cigars are sold individually without a tobacco stamp, a specification of cigars including their brand name and the number of pieces of cigars in a packaging shall be
submitted to the Central Office.
An authorized excise warehouse-keeper who carries out sales activities in separate
retail outlets of excise warehouses at airports to passengers travelling to another
Member State is, at the time of excise duties liability or at the time of sale, required
to mark the original packaging of a tobacco product with a tag containing the words
«TAX PAID». When selling tobacco products to passengers travelling to a third country or territory upon presenting a boarding ticket, he/she is required to mark the
original packaging of the tobacco product with a tag «FOR EXPORT ONLY» at the
time of sale.
i
A payer of excise duty on tobacco products, except an authorized excise warehousekeeper who carries out sales activities in separate retail outlets of excise warehouses
at airports to passengers travelling to another Member State, third country or territory, is issued tobacco stamps by the Croatian Ministry of Finance on the basis of their
application for receiving stamps submitted to the Customs Administration. A payer of
excise duty on tobacco products is required to lodge a security for the payment of
excise duty on tobacco products prior to receiving tobacco stamps from the Croatian
Ministry of Finance.
133
A tobacco stamp of the Ministry of Finance shall be affixed on packaging of tobacco
products for retail sale, in addition to fulfilling the requirements prescribed by special
regulations in the part related to health warnings, unique identification codes, and
the safety element of protection. A tobacco stamp must be affixed to the packaging
intended for retail sale below the cellophane or other transparent cover enclosing the
packaging so that it is visible and broken at opening. Exceptionally, for tobacco products that have special or unusual packaging, a tobacco stamp can be applied directly
on the original packaging so that it is visible and broken at opening, while the application of stamps can be done in an excise warehouse in accordance with a special
approval from the competent customs office.
i With the introduction of the system of safety elements of protection on packaging of
tobacco products for retail sale that are released for consumption in the territory of
the European Union, it is possible to repeal the labelling of tobacco products with
tobacco stamps in accordance with special regulations.
i
Tobacco products that do not have to be labelled with tobacco stamps are:
1. those that are sold in separate retail outlets of excise warehouses at airports to
passengers who are travelling to another Member State, third country or territory,
2. those that are not manufactured in the Republic of Croatia and which are, with
the approval of the competent customs office, imported from another Member
State or imported and placed in an excise warehouse in order to be dispatched
in the system of deferred payments of excise duties to another Member State or
a location whereby tobacco products leave the territory of the EU,
i
For the above-mentioned tobacco products the authorized excise warehouse-keeper
is required to submit to the Customs Administration a record of imports and shipments of tobacco products the following business day from the date of import i.e.
shipment of tobacco products.
3. those that are not manufactured in the Republic of Croatia, whose recipient
from Article 29 of the Excise Duties Act carries them in or imports from another Member State
4. those that are on the basis of a ruling from the Central Office exempt from
excise duty, and which are intended for scientific research and quality analysis
and testing. If tobacco products are manufactured in the Republic of Croatia
and are intended for trial production and quality analysis, they must be
marked by a stamp containing the letter code “P”.
Tobacco products that are not marked with tobacco stamps from the Ministry of Finance are considered products whose excise duty was not calculated and paid for,
and their release for consumption, purchase, and possession shall be deemed illegal.
This also applies to unauthorized production of tobacco stamps from the Ministry of
Finance, stamps for tobacco products from other Member States, third countries or
territories, and their unauthorized printing, possession, and distribution or deliberate damage.
A payer of excise duty on tobacco products that releases tobacco products for consumption in the Republic of Croatia is required to submit to the Customs Administration their daily consumption of stamps the following business day from the date of
134
their manufacture, the date of their release for free circulation in the Republic of
Croatia, and the date of receiving tobacco products from another Member State
and, in any other case, upon the expiration of 60 days from the date of receiving
tobacco stamps when the liability to pay excise duty occurs.
Exceptionally, when
tobacco products are imported and the customs procedure of releasing goods
for free circulation on the Croatian territory is carried out,
tobacco products are imported and the customs procedure of releasing goods
for free circulation in another Member State of the European Union is carried
out, and the products are shipped in the system of deferred payments into
Croatian territory in order to be released for consumption,
tobacco products are carried in from another Member State and released for
consumption on Croatian territory.
An authorized excise warehouse-keeper is required to submit to the Customs Administration a request for stamps no later than the following business day from the date
of receiving tobacco products that have a special or unusual packaging, and must
deliver the daily consumption of stamps the following business day from the date of
affixing stamps or, in any other case, upon the expiration of 60 days from the date of
receiving tobacco stamps when the liability to pay excise duty occurred.
i If the import of tobacco products from overseas countries is not completed within 60
days from the date of receiving tobacco stamps, the Customs Administration may
upon the importer’s request grant an extension of the deadline.
i
III. ENERGY PRODUCTS AND ELECTRICITY
No.
Excise product
Excise duty base
Amount of the excise
duty
1.
1000 liters at the temperature HRK
1.1 Leaded petrol falling within CN
of +15° C
4,500.00/1000 l
codes KN 2710 11 31, 2710 11
51, 2710 11 59
1.2 Unleaded petrol falling within CN 1000 liters at the temperature HRK
of +15° C
3,860.00/1000 l
codes 2710 11 31, 2710 11 41,
2710 11 45, 2710 11 49
2.
Gas oil falling within CN codes 2710 19 41 to 2710 19 49
2.1 for motor fuels
of +15° C
3,060.00/1000 l
2.2 for heating
1000 liters at the temperature HRK 423.00/1000 l
of +15° C
Excise duty on the gas oil purchased against presentation of the fuel card by the gas oils consumers for use in agriculture, fishery and aquaculture shall be HRK 0.00.
3
Kerosene – petroleum falling within CN codes 2710 19 21 i 2710 19 25
3.1 for motor fuels
of +15° C
2,660.00/1000 l
3.2 for heating
of +15° C
1,752.00/1000 l
135
No.
Excise product
Excise duty base
Amount of the excise
duty
4.
LPG – liquid petroleum gas falling within CN codes 2711 12 11 to 2711 19 00
4.1 for motor fuels
1000 kg net weight
HRK 100.00 /1000
kg
4.2 for heating
1000 kg net weight
HRK 100.00 /1000
kg
HRK 160.00 /1000
5.
Heavy fuel oil falling within 1000 1000 kg net weight
kg
kg net weight CN codes 2710 19
61 to 2710 19 69
6.
Natural gas falling within CN codes 2711 11 00, 2711 21 0014 and gasses falling within
CN code 2711 29 00
6.1 for motor fuels
quantity of electricity measured HRK 0.00/MWh
in Megawatt hours
6.2 for heating for business use
in Megawatt hours
6.3 for heating for non-business use
in Megawatt hours
7.
Coal and coke falling within CN codes 2701, 2702 and 2704
7.1 for business use
Gigajoule gross calorific value
HRK 2.30/Gj
7.2 for non-business use
Gigajoule gross calorific value
HRK 2.30/Gj
8.
Electricity falling within CN code 2716
8.1 for business use
in Megawatt hours
8.2 for non-business use
quantity of electricity measured HRK 7.50 /MWh
in Megawatt hours
9.
Biofuels – pure
1000 liters at the temperature HRK 0.00
of +15° C
i
For energy products that were added biofuel, the user is entitled to a refund or deduction from the payment of excise tax in proportion to the share of added biofuels,
i.e. products, but up to 5%.
Excise duty on the energy products within CN codes KN 2707, KN 2708, KN
2709, KN 2712, KN 2713, KN 2714, KN 2715, KN 2901, KN 2902, KN 3403,
KN 3811, KN 3817, KN 1507 to 1518, shall be paid according to their purpose and in the amounts stipulated for the equivalent motor fuel or heating
fuel listed in the table above. Excise duty on the energy products within CN
code KN 2905 11 00 that are non-synthetic origin and KN 3824 90 99 shall
also be paid according to their purpose and in the amounts stipulated for the
equivalent motor fuel or heating fuel listed in the table above.
On other products that are intended for use, offered for sale or used as fuel
excise duty shall be paid according to their purpose and in the amounts stipulated for the equivalent motor fuel or heating fuel listed in the table above.
On other hydrocarbons intended for use, offered for sale or used for heating,
except peat or biomass, excise duty shall be paid according to their purpose
136
and in the amounts stipulated for the equivalent motor fuel or heating fuel
listed in the table above.
Excise duty on the additives and fillers added to the energy product shall be
paid in the same amount as stipulated for the energy product to which they
are added.
The provisions with regard to the production, storage, processing and movement of
products suspension arrangements, and to the supervision and reporting shall apply
only to the following energy products:
1. falling within CN codes 2707 10, 2707 20, 2707 30 and 2707 50,
2. falling within CN codes 2710 11 to 2710 19 69,
3. falling within CN codes 2710 11 21, 2710 11 25, and 2710 19 29 for commercial
bulk movements,
4. falling within CN code 2711 except for 2711 11, 2711 21 and 2711 29,
5. falling within CN code 2901 10,
6. falling within CN codes 2902 20, 2902 30, 2902 41, 2902 42,2902 43 and 2902 44,
7. falling within CN codes 3811 11 10, 3811 11 90, 3811 19 00 and 3811 90 00,
For listed energy products that are not being used as a drive fuel or fuel for heating,
the excise taxpayers do not submit monthly report, but are bound to deliver a specification of such energy products to the competent customs office by the 20th day of
each month for the preceding month. Products that are not being used as a drive fuel
or fuel for heating are released in consumption along with a statement of the purpose of use based on which the same are not subject to excise duties.
i Provisions on appropriate supervision of movement also apply to energy products
with tariff codes KN 2710 19 91 and 2710 19 99 (lubricating oil or lubricants included in Article 83 Paragraph 2 Item 1 of the Act)
i Surveillance, production, processing, storage, movement and filing reports are also
applied to all energy products referred to in Article 83 Paragraph 3 of the Excise Duties Act.
i
Measurement of energy products
The excise duty payers shall measure the input and output quantities of energy products by using flow meters or scales certified by the standardization
and metrology authority and additionally sealed by the competent customs
house. Additional sealing by the competent Customs office is not applied to
gas meters. The customs house competent according to the location of the
excise warehouse shall also provide lead seals for the ancillary piping, the fittings, the control panels, the fuses and all other things connected with the
measurement of the output quantities of energy products.
Repairs, replacements and other activities requiring removal or affixing of the
customs lead seal may be carried out only in the presence of an authorized
official of the competent customs house, who shall compose a memorandum.
137
Marking of gas oils and its use
Before being dispatched from the excise warehouse, the gas oils falling within CN
codes 2710 19 41, 2710 19 45 and 2710 19 49 used as a heating fuel or for use in
agriculture, fishing, farm fishing, aquaculture and navigation, must be marked with
the appropriate indicator in accordance with the standardization regulations and
dyed red, i.e. blue.
The gas oils that are imported and being the subject of customs procedures before
being put into free circulation in the territory of the Republic of Croatia, i.e. that are
imported and being the subject of customs procedures before being put into free
circulation in another Member State of the EU and that are within the suspension
system shipped to the territory of the Republic of Croatia, shall be deemed to be
properly marked if accompanied with a certificate of the foreign supplier showing
the type and quantity of the marking substance used, endorsed by the competent
authority that such goods were marked in a third country, which proved that gas oils
were properly marked. If no such certificate is provided or if there is no other proof
that the imported gas oils have been properly marked, the gas oils shall be deemed
unmarked.
Marked gas oil must be stored in a way that ensures that the other products do not
affect the neutralizing of agents for marking.
i The marking of gas oil may be carried out only at the excise warehouse operated by
the authorized excise warehouse-keeper whose excise warehouse-keeping authorization includes also the authorization for the marking of gas oils and whose warehouse
is fitted with facilities for dosage and mixing or similar facilities that can ensure proper marking.
i
In the cases when gas oils are not properly marked or when the facilities do
not ensure proper marking, the competent customs house shall withdraw its
authorization for marking gas oils.
The marked gas oils may not be used for the propulsion of motor vehicles, floating
objects, vessels or other engines and machinery or for other purposes, except as
heating fuels. The marked gas oils may not be sold by being directly poured into fuel
tanks of motor vehicles, floating objects, vessels, other engines or machinery. Excise
taxpayers and other legal and natural persons who sell marked gas oils for the purpose of heating have to file an application to the competent Customs Office based
on their headquarters or a place of residence, for specially established warehouse for
sale of marked gas oils for the purpose of heating at the latest 8 days before the
beginning of sales. These individuals are obliged to keep records of customers and
sold quantities in electronic form, on the form EKO-PG.
Gas oils colored blue must not be used by the users of rights to drive agricultural
machinery of the agricultural holdings and for the operation of drive and auxiliary
engines of fishing vessels that are used to perform economic activities of fishing, for
operation of drive and auxiliary engines, boats and machines in fish farming and
aquaculture, and the users of rights in navigation.
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The marketing of marked gas oils
Sale of marked gas oils for heating purposes can be performed only from specially
established warehouses that must be reported to the competent Customs Office.
Sale of marked gas oils for heating purposes must not be carried out by direct pouring of oils in the fuel tanks of motor vehicles, vessels, boats, engines or other machines. Sales of the marked gas oils for the purposes of the user of rights in agriculture, fishing, fish farming, aquaculture and navigation are done with a fuel card.
If it is determined during the inspection of motor vehicles, vessels, boats, other engines or machines that marked gas oils are used for purposes other than the purposes prescribed by the owner of the motor vehicle, vessel, boat, other engine or
machine, excise tax shall be calculated on the amounts that correspond to the volume of the fuel tank. If it is determined during the inspection of accounting and
other documents or otherwise, that the energy products for which the amount of
excise duty was reduced or energy products for which excise duty was not paid or
the exemption from payment of excise duty was applied, that such persons buy,
transport, process, possess, hold or sell the same contrary to statutory provisions, the
excise duty shall be calculated on the amounts for which it is determined that were
the subject of the illegal conduct. Excise duty is calculated according to the highest
applicable excise duty amount prescribed for equally valuable drive fuel depending
on the type of the energy product that is the subject of the illegal conduct.
When such quantity cannot be determined based on business books and records, the
Customs Administration shall assess the amount of energy product that was subject
to illegal conduct.
i If there is a danger that the disposition of assets, agreement with third parties or
some other act, prevent or significantly impede the execution of the payment of excise duty, or if from other circumstances arises that the payment of excise duty may
be uncertain, the Customs Office may, in order to ensure the collection and if it is
proportionate to the purpose one wishes to achieve, take all measures, including
confiscation and sale of motor vehicles, vessels, boats, other engines or machines
that were the subject of inspection.
i Any person who unlawfully acted must perform dispense of the energy product that
was the subject of the illegal conduct within five days from the day the inspection
was implemented, or a longer period that was prescribed by the official person, depending on the circumstances of the case, and submit written evidence about the
same to the competent customs administration unit. The costs of dispense of energy
products and tank cleaning shall be borne by the person who acted illegally.
i
Gas oils for the purposes of agriculture, fisheries and aquaculture
1. Users of rights on consumption for general purposes in agriculture are agricultural holdings registered in the appropriate register of agricultural holdings at the
competent Ministry of agriculture, and who are defined in accordance with special
regulations.
2. Users of rights on consumption of gas oils for purposes in farm fishing and aquaculture, and for the purpose of fishing, are natural and legal persons which possess the
privilege in accordance with special regulations.
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3. Users of rights on consumption of energy products that are used as drive fuel for
navigation are natural and legal persons registered in the corresponding register,
i.e. inquest register as owners, ship-owners or leasing users of leased vessels or
vessels in accordance with a special regulation.
Users of rights from Items 1, 2 and 3 monetize their right according to special regulations based on the approval and fuel card issued by the competent authority for the
affairs of agriculture and fisheries, or the competent authority for the affairs of the
traffic. The fuel card is considered to be a public document. Such users of rights use
gas oils as drive fuels for agricultural machinery of the agricultural holdings and for
the operation of drive and auxiliary engines of fishing vessels that are used to perform
economic activities of fishing, for operation of drive and auxiliary engines, boats and
machines in fish farming and aquaculture.
i Excise taxpayers and other legal or natural persons who sell gas oils to users of rights
from Items 1, 2 and 3 are required to fulfill the requirements for the electronic exchange of data in the central database about these users, and preform sales only
upon presentation of the fuel card.
i
The use of energy products as fuel in air traffic
Exemption from the payment of excise duty on energy products which are used as
an engine fuel in air traffic is realized by:
1. direct exemption by immediate shipment of energy products from the excise
warehouse of the authorized holder of the excise warehouse to the airplane
which is used for commercial operations in air traffic.
2. exceptionally, by recovery of excise duty paid on the basis of the request, that
is submitted to the competent Customs Office according to the place of residence or headquarters of the operator of the aircraft in the prescribed form,
and shall be submitted separately every four months during a calendar year.
Entitled to a refund of excise duty paid are exclusively the operators of aircrafts who are registered in the registry of the users of right to a refund of
excise duty paid on fuels in commercial air traffic and that, for the period
starting from the date of registration in the registry of users.
The use of gas oils as drive fuels for machines for the preparation of surfaces during demining
Entitled to a refund of excise duty paid for the spent gas oil for drive fuel for machines for the preparation of surfaces in demining activities are legal persons and
entrepreneurs who have been issued the resolution of the Ministry of the Interior on
the approval to conduct affairs of machine preparation of surfaces in demining activities, use gas oil as drive fuel for machinery and perform tasks of machine preparation of mine suspected area on the territory of the Republic of Croatia, and who are
registered in the register of the users of rights to a refund of the excise duty on gas
oil that was spent for machine preparation of surfaces in demining activities and for
the period starting from the date of their registration in the registry.
User of rights may be a contractor and subcontractor who performs machine surface
preparation from the agreement on demining activities, and a contractor and sub-
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contractor in the agreement on machine preparation of surfaces for the purposes of
technical survey.
Entitlement to a refund of excise duty paid relates exclusively to the machines for
preparation of surfaces in demining activities that are dedicated for jobs of machine
preparation of surfaces in demining activities and for which conformity assessment
has been issued in accordance with the regulations governing technical requirements for products and conformity assessment.
Application for the registration in the registry of users of rights is to be submitted to
the competent Customs Office based on the headquarters or residence of the person
who applies for the refund of excise duty, and the same is to be submitted for each
calendar year. The request for registration shall be accompanied by a copy of a valid
solution of the Ministry of the Interior on the approval to conduct activities of machine preparation of surfaces in demining activities.
i Users of rights submit a request for a refund of excise duty paid to the competent
customs office after the issuance of a certificate on area and/or building exclusion out
of the MSP (mine suspicious area), and at the latest by the end of the first quarter of
the calendar year that follows the year in which the certificate on area and/or building
exclusion out of the MSP was issued.
i
THE INCURRENCE OF EXCISE DUTY LIABILITY
The excise duty shall become chargeable:
A) at the time of releasing the excise products for consumption in the
Republic of Croatia, unless otherwise regulated by the Excise Duties
Act, specifically:
1. upon releasing excise products from duty suspension arrangement, which
implies consumption of excise products for their own purposes within an excise warehouse, when a registered recipient receives excise products under
duty suspension arrangement, shipping of excise products from the excise tax
warehouse to a person who is not authorized to receive excise products under
duty suspension arrangement, receiving excise products at the location of
direct delivery, and in case of movement interruption,
2. upon the production of excise products outside duty suspension arrangement, except tobacco products and energy products,
3. when holding excise products outside duty suspension arrangement for which
excise tax is not calculated and paid in accordance with the provisions of the
Excise Duties Act,
4. when a loss or lack of excise products is determined that occurred in the Republic of Croatia or that is detected in the Republic of Croatia for which it is
not possible to determine where it occurred,
i
Release for consumption shall not be deemed total destruction or irreversible loss of
excise products that occurred during duty suspension arrangement:
– for which it is proved that it can be attributed to unforeseen circumstances or force
majeure, or that it is inextricably linked to the characteristics of the product created
during production, storage, and transport of excise products, or
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– which was verified by a competent state body of the Member State.
Products shall be deemed totally destroyed or irreversibly lost when they can no longer
be used as excise products.
5. upon shipment of tobacco products from an excise warehouse to another authorized excise warehouse-keeper in the Republic of Croatia, except to an authorized excise warehouse-keeper who performs sales in separate retail outlets
of excise warehouses at airports to passengers who are travelling to another
Member State, third country or territory, and if followed by proceedings in duty
suspension arrangement for shipments to another member State, i.e. a location
where tobacco products leave the territory of the European Union,
6. on the expiry date of the authorization for operating with excise products issued by a competent customs office.
Excise Duties Act prescribes the liability to calculate and pay the difference in excise
duty on cigarettes upon each increase in the amount of excise duty on cigarettes and/
or increase in the retail price for cigarettes which were already released for consumption in the Republic of Croatia, specifically:
  for payers of excise duty on tobacco products who are authorized holders of excise
warehouses, importers, registered recipients, and occasionally registered recipients
for cigarettes that are outside an excise warehouse, in warehouses or other facilities
of authorized distributors for the wholesale of cigarettes with whom they have
concluded distribution agreements, and in warehouses or other premises of persons with whom they are directly connected via ownership and/or control.

for other persons in Article 21 Paragraph 2 Item 1 of the Excise Duties Act (for example: news stands, stores, catering facilities, and other retail shops who keep
cigarettes for sale to end consumer). In their name and on their account a payer of
excise duty on tobacco products may list stocks, compile a report, and calculate as
well as pay the difference in excise duty on cigarettes.
Payers of excise duty on tobacco products – cigarettes and other persons who for
resale purposes keep cigarettes are required to make an inventory of cigarettes:

starting from the effective date of the regulation that increases excise duty on cigarettes (for example: a regulation came into force on 6 March 2014, which means
that the inventory of cigarettes should be made according to the situation in the
morning of 6 March 2014), and/or

at the end of the day preceding the effective date of the reported higher retail price
of cigarettes (for example: the effective date of a higher retail price was 11 December 2014, which means that the inventory of cigarettes should be made according
to the situation on the evening of 10 December 2014), and

compile a record for each cigarette brand, quantity, and the current retail price of
cigarettes for which the difference in excise duty is calculated in accordance with
the current amount of excise duty on cigarettes and/or current retail price of cigarettes. The record of the inventory of cigarettes with the calculated difference in
excise duty shall be submitted on Form Z-ORT via the electronic service of the Customs Administration e-Carina, application subsystem e-Tro{arina no later than 8
days from the date of inventory. The calculated difference in excise duty on the assessed stock of cigarettes shall be paid within 30 days of the date of the inventory.
i
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B) Excise duty liability incurs when a recipient in the Republic of Croatia,
for the purposes of conducting business, receives excise products released for consumption in another Member State by
C) Excise duty liability incurs upon excise products arriving to the Republic
of Croatia in case of distance selling
Excise duty liability does not incur for excise products already released for consumption in another Member State that are imported in the Republic of Croatia by a
natural person who personally transports them for personal use in the Republic of
Croatia. It shall be deemed that imported excise products are not intended for commercial purposes if their amounts do not exceed: 800 pieces of cigarettes, 400 pieces of cigarillos, 200 pieces of cigars, 1 kilogram of smoking tobacco, 10 liters of
strong alcoholic drinks, 20 liters of intermediate products, 90 liters of wine, including a maximum of 60 liters of sparkling wine, 110 liters of beer.
i
Excise duty liability incurs for purchased energy products shipped to the Republic of
Croatia that were already released for consumption in another Member State and are
transported in an abnormal manner by a natural person or someone else in their
name. Abnormal transport shall be deemed any transport of energy products, except
transport of motor fuel, in standard tanks of motor vehicles or appropriate portable
canisters for reserve fuel of up to 10 liters.
D) Upon import of excise products in the Republic of Croatia excise duty
liability incurs on the effective date of a customs debt in accordance
with customs regulations on the calculation and collection of customs
debt, except in cases where excise duty liability is postponed.
E) Excise duty liability incurs when:
1. the competent customs office sells or assigns confiscated excise products,
except when they are sold or assigned to an authorized excise warehousekeeper, i.e. an exempt user,
2. excise products in the process of business merging are released for consumption, except when the purchaser is an authorized excise warehouse-keeper,
i.e. an exempt user,
3. the process of business merging is completed and when excise products are
dispatched to the merged entity, except when the merged entity is an authorized excise warehouse-keeper, i.e. an exempt user, but no later than 30 days
from the registration date of the merger in a court register,
4. excise products in a bankruptcy procedure are released for consumption or
dispatched to the creditor, except when the creditor is an authorized excise
warehouse-keeper, i.e. an exempt user.
F) Liability to calculate excise duty on electricity for supplies of electricity
incurs upon:
a) expiration of the accounting period in which shipments were made
i
Accounting periods span from the first to the last day of a month.
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i
Measuring/determining the delivered quantity of electricity is carried out by the transmission system operator and the distribution system operator, and the manufacturer
via regular readings of electricity meters in accordance with special regulations.
An electricity supplier calculates excise duty on electricity according to invoices issued for deliveries made during an accounting period based on data
about actual delivered quantities of electricity to an end customer. An electricity supplier may charge excise duty on the basis of data from the transmission
system operator or the distribution system operator about estimated monthly
amounts of supplied electricity to an end customers according to the average
monthly electricity consumption of that customer from the relevant accounting period of the previous year, i.e. according to a mutually established
monthly electricity consumption with a new end customers.
An electricity supplier shall at least once every six months issue a final calculation of
excise duty for months for which excise duty is determined according to estimated
monthly quantities of electricity in a monthly calculation of excise duty for the month
in which the actual delivered quantity of electricity was determined.
b) import of electricity for personal purposes or use of electricity for
personal purposes by the manufacturer – upon expiration of the accounting period in which the shipments were made
c) import of electricity – in accordance with customs regulations concerning
calculation and collection of customs debt.
G) Excise duty liability for natural gas incurs upon:
a) shipments of natural gas at the expiration of the accounting period
in which the shipments were made,
i
i
The transmission system operator and the distribution system operator, and the gas
manufacturer carry out measuring/determining the delivered quantity of natural gas.
A gas supplier calculates excise duty on natural gas according to invoices issued for monthly deliveries in an accounting period on the basis of data about
actual delivered quantities of natural gas to an end customer. A gas supplier
may charge excise duty on the basis of data from the transmission system
operator or the distribution system operator about estimated monthly
amounts of supplied natural gas to an end customers according to the average monthly gas consumption of that customer from the relevant accounting
period of the previous year, i.e. according to a mutually established monthly
gas consumption with a new end customers. A gas supplier shall at least once
every six months issue a final calculation of excise duty for months for which
excise duty is determined according to estimated monthly quantities of natural gas in a monthly calculation of excise duty for the month in which the
actual delivered quantity of natural gas was determined.
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b) import of natural gas for personal purposes or use of natural gas
for personal purposes by the manufacturer – upon expiration of the
accounting period in which the shipments were made,
c) import of natural gas – in accordance with customs regulations concerning calculation and collection of customs debt.
H) Liability to excise duty on solid fuels incurs when a supplier ships solid
fuels to an end consumer according to issued invoiced or when he/she
uses them for personal end consumption (upon expiration of the accounting period in which the supplies were carried out) and when an end consumer carries in or imports solid fuels for personal end consumption (upon
expiration of the accounting period in which those supplies were completed or in
accordance with customs regulations).
i
I) Excise duty liability due to irregularities
Excise duty liability incurs even when it has been determined that excise products
were:
1. illegally manufactured, shipped, received, imported, carried in, bought, sold,
stored, transported, used or consumed, or unlawfully released for consumption,
2. shipped or used by an exempt user for unapproved purposes.
i
The competent customs office, according to the supplier’s headquarters, determines
excise duty liability for excise products for which a supplier did not receive confirmation of receipt.
If during the movement of excise products under duty suspension arrangement between Member States irregularities occurred, which incur excise duty liability in the
Republic of Croatia, excise duty is calculated when:
1. an irregularity occurred in the Republic of Croatia,
2. an irregularity was discovered in the Republic of Croatia, but it is not possible
to determine in which Member State the irregularity occurred,
i
If excise duty is calculated in accordance with Item 1 or 2, a competent authority of
the Republic of Croatia shall notify a competent authority of the Member State from
which the shipment of excise products was dispatched about this.
3. a shipment is dispatched to another Member State from the Republic of Croatia, but does not arrive to the destination location and during whose movement no irregularity was detected, unless the supplier, within a period of four
months from the excise products’ start of movement under duty suspension
arrangement, submits evidence of proper completion of movement or proof
of location where an irregularity occurred to a competent customs office.
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If excise duty should be calculated according to Item 3, and a security instrument for
paying excise duty deposited, a person who deposited the security instrument for
paying excise duty who was not or could not have been informed that excise products
did no arrive to the destination location can within one month from the notification
date of the competent customs office file evidence of proper completion of movement
or proof of location where an irregularity occurred.
i A competent customs office releases payment of excise duty, i.e. refunds the paid
amount of excise duty in the Republic of Croatia which was paid in accordance with
Items 2 and 3 if a supplier, i.e. excise taxpayer or another person for their account
within three years from start of the movement submits to a customs body evidence
that excise duty was paid in the Member State in which irregularities occurred. The
competent customs office carries out refund of the actual amount of excise duty paid
in the Republic of Croatia.
i
Excise duty liability incurs upon shipment according to excise base and rates, i.e.
amounts that are in force on the shipment day.
The liability to calculate and pay excise duty incurs when irregularities are determined
in connection with the movement of excise products that represent abuse of rights in
the movement of excise products. A payer of excise duty shall pay the amount of
calculated excise duty within 10 days of receiving a decision. An appeal against the
decision does not postpone its execution.
i If an excise debt arose on the basis of illegal handling of excise products in circulation
in the Republic of Croatia, then excise duty liability of a person who is not registered
in the register of excise taxpayers may be incurred by submitting an application for
excise duty liability and by paying the due amount of excise duty within 5 days from
the inspection date when it was determined that excise products are in such circumstances that result in the incurrence of excise debt.
i
If during the movement of excise products released for consumption between Member States irregularities occurred, which incur excise duty liability in the Republic of
Croatia, excise duty is calculated when:
1. an irregularity occurred in the Republic of Croatia;
2. an irregularity was discovered in the Republic of Croatia, but it is not possible
to determine in which Member State the irregularity occurred. If prior to the
expiration period of three years from the purchase date of excise products it
is determined that irregularities did occur in another Member State, the calculation of excise duty should be made in that Member State.
i
The competent customs office shall upon request release payment of excise duty, i.e.
refund excise duty paid on excise products released for consumption in the Republic
of Croatia when the excise duty is paid in the Member State in which irregularities
occurred or in which the irregularity was discovered.
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SUBJECT OF CALCULATION AND PAYMENT OF EXCISE DUTY
Excise duty payers shall calculate and pay excise duty themselves according to the
prescribed excise duty basis and rates or in nominal amounts in effect on the day of
excise duty becomes chargeable.
In case of an expired excise duty approval, except in cases of bankruptcy, liquidation,
or merging of business operators, an authorized excise warehouse-keeper shall submit daily excise duty accounts and monthly reports for excise products in stock, and
must pay excise duty within 30 days, beginning from the expiry date of the approval.
i
In the case of bankruptcy, liquidation or merger of economic entities, excise duty on
the excise products in stock at the warehouses on the day when the proceedings are
completed shall be payable within 30 days after the proceedings are completed or
the products dispatched to the creditor
If the authorization granted to the exempt user should cease to be valid, with the
exception of the cases of bankruptcy, liquidation or merger of economic entities, the
exempt user shall pay excise duty on the excise products in stock at the exempt user’s
facility no later than 30 days after the authorization has ceased to be valid.
The excise duty payer shall disclose the calculated excise duty in the daily excise
duty accounts to be supplied twice a month to the customs house that is competent
according to the excise duty payer’s registered office or place of residence. The daily
account for the period from the 1st to the 15th day of a month shall be delivered by
the 20th day of the same month, and for the period from the 16th to the last day of
a month by the 8th day of the following month. Calculated excise duty must be paid
within 30 days from the date of incurrence of excise duty liability, unless otherwise
prescribed by the Excise Duties Act.
The excise duty payer of tobacco products shall have the obligation to
state excise duty calculated at the time of dispatching tobacco products from the
excise warehouse in daily excise duty accounts that have to be submitted on the
working day following the day of emerging the obligation of calculation of excise
duty. The calculated excise duty must be paid within 30 days from the date of the
incurrence of excise duty liability.
Excise taxpayers do not submit daily excise duty accounts for accounting periods in
which excise duty liability did occur or if excise duty was HRK 0.
i Authorized excise warehouse-keepers that have more than one excise warehouse deliver cumulative daily excise duty accounts and cumulative monthly reports, provided
that they keep special records of calculated excise duty for each excise warehouse.
i
An excise taxpayer shall present information about stock condition, received, entered, produced, shipped and imported excise products, and information about calculated excise duty in monthly reports that must be submitted to the competent
customs office until the 20th of the current month for the past month, unless otherwise stipulated. Monthly reports are submitted electronically via e-Customs, application subsystem e-Excise Duties.
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If excise duty liability on tobacco products marked with tobacco stamps did not incur
upon the supply of tobacco products from an excise warehouse to another authorized excise warehouse-keeper in the Republic of Croatia, except to an authorized
excise warehouse-keeper who performs sales in separate retail outlets of excise warehouses at airports to passengers who are travelling to another Member State, third
country or territory, and if followed by proceedings in duty suspension arrangement
for shipments to another Member State, i.e. a location where tobacco products
leave the territory of the European Union, an authorized excise warehouse-keeper
shall pay excise duty on tobacco products marked with tobacco stamps within 90
days from the date of receiving tobacco stamps.
Payer of excise duty on electricity falling within CN code 2716:
1. supplier of electricity when delivering electricity to an end customer in the
Republic of Croatia is required to calculate and pay excise duty until the last
day of the current month following the expiration of the accounting period,
2. manufacturer upon use of electricity for personal purposes – identical to Item
1,
3. supplier upon import of electricity for personal purposes – in accordance with
customs regulations concerning calculation and collection of customs debt,
4. supplier upon import of electricity for personal purposes – identical to Item 1.
Payer of excise duty on natural gas falling within CN codes 2711 11, 2711 21,
and 2711 29:
1. supplier of natural gas when delivering natural gas to an end customers in the
Republic of Croatia is required to calculate and pay excise duty until the last
day of the current month following the expiration of the accounting period,
2. manufacturer upon use of natural gas for personal purposes – identical to
Item 1.
3. supplier upon import of natural gas for personal purposes – in accordance with
customs regulations concerning calculation and collection of customs debt
4. supplier upon import of natural gas for personal purposes (identical to Item 1).
Payer of excise duty on solid fuels falling within CN codes 2701, 2702, and
2704:
1. supplier of solid fuels when delivering solid fuels to an end customers in the
Republic of Croatia, i.e. when using solid fuels for personal purposes, is required to calculate and pay excise duty until the last day of the current month
following the expiration of the accounting period,
2. end consumer upon import of solid fuels for personal consumption – in accordance with customs regulations concerning calculation and collection of
customs debt.
3. end consumer upon import of solid fuels for personal consumption (identical
to Item 1)
i
NOTE: Excise duty liability shall not be incurred if a legal entity or natural person who
procured solid fuels with paid excise duty delivers these fuels to another legal entity
or natural person.
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Small producers of strong alcoholic beverages shall calculate excise duty during
an accounting period (from January 1st to December 31st) and pay it by January 31st
of the current year for the previous year.
Upon import of excise products excise duty shall be paid in accordance with
customs regulations, except when payment of excise duty is postponed or if otherwise stipulated.
i
An excise taxpayer – importer of excise products shall submit a monthly report only,
and that for the month in which import occurred.
DUTY SUSPENSION ARRANGEMENT
Payment of excise duty is postponed if excise products are received, produced and/
or stored in an excise warehouse, if placed in an exempt user’s facility and used for
approved purposes, or if they are shipped under duty suspension arrangement in
accordance with requirements prescribed by the Excise Duties Act.
Payment of excise duty for excise products imported in accordance with customs
regulations if the products are immediately after the completion of the customs
procedure of releasing goods in free circulation placed in an excise warehouse or in
an exempt user’s facility, or are shipped to a person in another Member State who in
accordance with the legislation of that Member State may receive excise products
under duty suspension arrangement.
i
Excise products which are in a customs procedure under duty suspension are not
subject to general terms and conditions for the operation of excise warehouses and
provisions on the movement of excise products in duty suspension arrangement.
If an authorized excise warehouse-keeper or an exempt user in the circumstances of bankruptcy or liquidation goes out of business, the payment of
excise duty is delayed so long as excise products which are in stock on the day
of commencing bankruptcy proceedings, i.e. the decision of the court registry
on the commenced liquidation process, are stored in an excise warehouse or
an exempt user’s facility, i.e. until they are released for consumption or dispatched to a creditor on the basis of a decision on the division of assets, unless the creditor is an authorized holder of the excise warehouse.
If excise authorization for an authorized excise warehouse-keeper and the excise warehouse or authorization for an exempt user is terminated due to merging of economic entities, payment of excise duty shall be suspended so long as
excise products are stored in the exempt user’s excise warehouse or facility, i.e.
until they are released for consumption. Payment of excise duty shall be delayed
until 30 days from the merging date entered in a court register.
After the commencement of legal effects of pre-bankruptcy and bankruptcy
proceedings against an excise taxpayer or at the request of authorities in prebankruptcy and bankruptcy proceedings, the customs office may allow actions and legal disposal of excise products to a debtor who is in a state of
149
imminent insolvency in the pre-bankruptcy procedure, i.e. a debtor who is in
a state of insolvency and over-indebtedness in a bankruptcy procedure. In
deciding on an authorization request a customs office shall take into account
the principle of safeguarding and realizing economic interests and interests of
public law. The bodies in the pre-bankruptcy and bankruptcy proceedings
may file an appeal against the decision of the customs office on the authorization request.
A customs office may in the case of statutory changes approve that the rights
and obligations of a company from an authorization for an authorized excise
warehouse-keeper and authorization for an excise warehouse, i.e. authorization to exempt an excise products user, be transferred to the company’s acquirer if the company whose holder is a capital company, i.e. trading firm,
continues to exist and if it is transferred to the new owner. The application for
authorization shall be submitted to the appropriate customs office according
to the acquirer’s head office, i.e. place of residence, within 15 days from the
entry date of the statutory change in a court registry.
Movement of excise products under duty suspension arrangement
The provisions on the movement of excise products under duty suspension arrangement in the Republic of Croatia and between the Republic of Croatia and other Member States also apply to the movement of excise products under duty suspension arrangement whose amount of excise duty equals HRK 0.
i Movement of excise products under duty suspension arrangement begins when excise products are shipped from an excise warehouse and when they are shipped by a
registered supplier directly upon their release in free circulation in accordance with
Article 79 of the Council Regulation (EEC) No. 2913/92.
i Movement of excise products under duty suspension arrangement ends when a recipient receives excise products and when excise products leave the territory of the EU.
i
Movement of excise products under duty suspension arrangement from another
Member State to a recipient must be accompanied by an e-TD and the certificate of
excise duty exemption prescribed by European legislation. If a supplier ships excise
products from the Republic of Croatia to another Member State to persons whose
status, according to legislation of that Member State, is comparable to that of the
person under provisions of the Excise Duties Act, he/she may ship them under duty
suspension arrangement only with e-TD and a certificate of excise duty exemption
issued by the Member State to which excise goods are dispatched.
1. Movement of excise products under duty suspension arrangement in the Republic of Croatia (movement that started and ended in the Republic of Croatia)
Excise products are moved under duty suspension arrangement in the Republic of
Croatia when:
1. they are shipped from one excise warehouse to another,
2. they are shipped from an excise warehouse to an exempt user’s facility and
vice versa, with prior approval from the competent customs office,
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3. they are shipped from an excise warehouse to a location in the Republic of
Croatia where excise products leave the territory of the European Union,
4. after the conclusion of the customs procedure of releasing goods in free circulation they are shipped to an excise warehouse or an exempt user’s facility,
5. they are shipped from an excise warehouse to another excise warehouse
across territory of another Member State,
6. they are shipped from an excise warehouse to another excise warehouse
across a third country or territory,
2. Movement of excise products under duty suspension arrangement between the
Republic of Croatia and other Member States
Excise products are moved under duty suspension arrangement between the Republic of Croatia and other Member States, including movement across third countries
or territories, when:
1. they are shipped from an excise warehouse in the Republic of Croatia to another Member State:
1.1 to an excise warehouse,
1.2 to a location where excise products leave the territory of the European
Union,
1.3 to a registered recipient, and
1.4 to recipients from Article 29 of the Excise Duties Act (persons whose status
is, according to the legislation of that Member State, comparable to the
status of persons from Article 29 Paragraph 1) of the Excise Duties Act)
2. they are shipped from an import location in the Republic of Croatia to the
shipping destination from Item 1 by a registered supplier,
i
Import location shall be deemed location where excise products were released for
free circulation in accordance with Article 79 of the Council Regulation (EEC) No.
2913/92.
3. an authorized excise warehouse-keeper, registered recipient, occasionally registered recipient, persons from Article 29 of the Excise Duties Act, and the
competent output customs office (the location where excise goods leave the
territory of the EU) in the Republic of Croatia receive excise products from a
person from another Member State which in accordance with the law of that
State may ship excise products under duty suspension arrangement,
4. the movement under duty suspension arrangement between other Member
States is carried out across Croatian territory.
i
The provisions on the movement of excise products under duty suspension arrangement do not apply to electricity, natural gas, and solid fuels.
Excise document
1. Movement of excise products under duty suspension arrangement is possible
only with the possession of an electronic excise document (hereinafter: e-TD) in
the Excise Movement and Control System which proves that the listed types and
amounts of excise products are moved under duty suspension arrangement, unless otherwise prescribed by the Excise Duties Act or some other directive.
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2. the possession of an accompanying excise document (hereinafter: PTD) makes
possible the movement of excise products under duty suspension arrangement
which entirely takes place in the Republic of Croatia if excise products are shipped
from an excise warehouse to an exempt user’s facility and vice versa, with prior
approval from the competent customs office,
i
Notwithstanding the provisions of Items 1 and 2, if excise products are immediately
shipped to an excise warehouse or an exempt user’s facility after the customs procedure of releasing goods for free circulation, the movement of excise products under
duty suspension arrangement is permitted with a paper copy of the customs declaration submitted via electronic exchange of data on whose account excise products
were released for free circulation. A recipient confirms the receipt of excise products
by verifying the customs declaration submitted via electronic exchange of data on
whose account excise products were released for free circulation, which he/she returns to the competent customs office where import clearance was performed within
five days from the date of entry into an excise warehouse or an exempt user’s facility.
1. Movement in the Republic of Croatia
a) e-TD – electronic excise document
A supplier – authorized excise warehouse-keeper submits a draft of the e-TD to the
Customs Administration using their computer system at the earliest 7 days before
the shipment date of excise products stated in the e-TD, but no later than the shipment date.
i
A supplier – authorized excise warehouse-keeper must provide a printed version of
the e-TD or a commercial document containing a unique reference tag. During the
movement of excise products under duty suspension arrangement these documents
accompany excise products and must be presented to the competent authorities
should that be necessary.
When a supplier – authorized excise warehouse-keeper ships excise products via
fixed pipelines, he/she must submit a draft of the e-TD to the Customs Administration via the computer system after passing through a measuring system for dynamic
and continuous measuring of quantities of liquids other than water and/or a measuring cup and a container with adequate equipment with which it is possible to
uniquely determine the volume of a medium in a measuring cup or container and/or
a measure of weight, depending on the type of excise products for which they are
intended. A printed version of the e-TD or commercial document containing a unique
reference tag must reach a destination location within 24 hours of shipping excise
products to which it relates.
i
A supplier – authorized excise warehouse-keeper may cancel the e-TD via the computer system so long as excise products are not shipped from an excise warehouse
under duty suspension arrangement. A supplier must fill out all forms of the draft
message about cancellation and submit it via the computer system of the Customs
Administration.
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i
A supplier – authorized excise warehouse-keeper may change the destination location during movement under duty suspension arrangement via the computer system
and provide a new destination which can be a different excise warehouse or a location in the Republic of Croatia where excise products leave the territory of the EU
upon export. A supplier must fill out all forms of the draft message about destination
change and submit it via the computer system of the Customs Administration.
A recipient (authorized excise warehouse-keeper) of excise products sends via the
computer system of the Customs Administration a confirmation of receipt immediately or no later than the 5th working day after receiving excise products under duty
suspension arrangement. The Customs Administration – export customs office validates the export of excise products from the territory of the European Union using
the computer system on the basis of a certificate of export made on the basis of a
verification from the competent export customs office, as required by Commission
Regulation (EEC) No 2454/93 of 2 July 1993 on provisions for the implementation of
the Council Regulation (EEC) No. 2913/92 on the Community Customs Code (OJ L
253, 11 10 1993, p. 1) (hereinafter: Commission Regulation (EEC) No. 2454/93) and
forwards it to the supplier – authorized excise warehouse-keeper.
i
The provisions on the movement of excise products do not apply to excise products
that fall under customs’ suspension arrangement and procedure.
b) PTD – accompanying excise document:
The movement of excise products under duty suspension arrangement which entirely takes place in the Republic of Croatia when excise products are moved from an
excise warehouse to an exempt user’s facility and vice versa, with prior approval of
the competent customs office, an authorized excise warehouse-keeper files a PTD on
the prescribed form in four copies.
A recipient of excise products must confirm their receipt to a supplier by verifying the
Form PTD that must be returned to the supplier within 5 days from receiving excise
products. A supplier who does not receive a verified copy of the PTD must no later
than ten days after the shipment notify the competent customs office, which will
determine if an excise duty liability incurred.
2. E-movement between the Republic of Croatia and another Member State
A supplier – authorized excise warehouse-keeper or registered recipient submits a draft
of the e-TD to the computer system of the Customs Administration and a certificate of
excise duty exemption when the recipient is a person referred to in Article 29 of the
Excise Duties Act in another Member State no later than 7 days from the shipment
date of excise products stated in the e-TD, or at the latest on the shipment date.
i
Exceptionally, no later than the shipment date when a recipient in another Member
State is a diplomatic and consular office and special accredited missions, under the
condition of reciprocity, except consular offices led by honorary consular officials,
staff of diplomatic and consular offices and special accredited missions, international
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organizations when determined by an international agreement which applies to the
Republic of Croatia, staff of international organizations when determined by an international agreement which applies to the Republic of Croatia, armed forces of NATO
Member States and the needs of their accompanying civilian staff or needs of supplying their canteens and restaurants.
A supplier – authorized excise warehouse-keeper or registered supplier must provide
a printed version of the e-TD or a commercial document containing a unique reference tag. During the movement of excise products under duty suspension arrangement these documents accompany excise products and must be presented to the
competent authorities should that be necessary.
Movement of excise products under duty suspension arrangement from another
Member State to a recipient from Article 29 Paragraph 1 of the Excise Duties Act
must be accompanied by e-TD and the certificate of excise duty exemption prescribed by European legislation.
If a supplier ships excise products from the Republic of Croatia to another Member
State to persons whose status, according to legislation of that Member State, is comparable to the status of persons in Article 29 Paragraph 1 of the Excise Duties Act, he/
she may ship them under duty suspension arrangement only with e-TD and a certificate of excise duty exemption issued by the Member State to which the excise goods
are shipped.
i A supplier – authorized excise warehouse-keeper or registered supplier may via the
computer system cancel the e-TD so long as excise products under duty suspension
arrangement have not been shipped from excise warehouses or if they were not
shipped by a registered supplier immediately after the customs procedure of releasing
goods for free circulation. A supplier must fill out all forms of the draft message
about cancellation and submit it via the computer system of the Customs Administration, whereas a registered supplier must also issue a new e-TD.
i A supplier – authorized excise warehouse-keeper or registered supplier may during the
movement under duty suspension arrangement change the destination location via the
computer system and provide a new destination which must be a different excise warehouse, a registered recipient in another Member State, a location where excise products
leave the territory of the EU upon export, or a direct shipment location in another
Member State. A supplier must fill out all forms of the draft message about destination
change and submit it via the computer system of the Customs Administration.
i
A recipient – authorized excise warehouse-keeper or registered recipient of excise
products sends via the computer system of the Customs Administration a confirmation of receipt immediately or no later than the fifth working day after receiving excise products under duty suspension arrangement.
An authorized excise warehouse-keeper or registered recipient who has a validation for
receiving excise products at a direct shipment location in the Republic of Croatia submits a confirmation of receipt via the computer system to the Customs Administration.
A direct shipment location is deemed a location other than the location of an excise
warehouse and the location of receiving excise products determined in the approval
for a registered recipient.
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An authorized excise warehouse-keeper and a registered recipient shall provide the
competent customs office with information about direct shipment locations and
their identification tags.
A direct shipment location is determined by excise authorization for an authorized
excise warehouse-keeper and an excise warehouse and by excise authorization for a
registered recipient. Additional control measures may be stipulated by the authorization. Receipt of excise products at a direct shipment location cannot be granted for
tobacco products and to occasionally registered recipients.
i
In case of movement of energy products under duty suspension arrangement via sea
or inland waterways to a recipient who is not completely known at the time of the
supplier’s submission of the e-TD, data related to the recipient in that document can
be left out if the supplier receives approval for such an action from the competent
customs office according to their headquarters, i.e. place of residence. Immediately
after the information about the recipient become known, and no later than end of
the movement, the sender must act in accordance with the previously described process of changing the destination location and send the data via the computer system
to the Customs Administration. The describes possibility of empty fields also refers to
the movement of excise products under duty suspension arrangement in the Republic
of Croatia.
The recipient from Article 29 of the Excise Duties Act confirms the receipt of excise
products by submitting a notice of receipt to the competent customs office no later
than the fifth working day after receiving excise products under duty suspension arrangement so as to be entered into the computer system.
Customs Administration – export customs office – confirms the export of excise
products from the territory of the European Union by using the computer system, on
the basis of an export certificate made on the basis of verification by a competent
export customs office as stipulated by Commission Regulation (EEC) No. 2454/93,
and forwards it to the competent state body of the dispatching Member State.
Movement of excise products released for consumption (between Member
States)
Movement of excise products released for consumption in the Republic of Croatia
which are shipped for commercial purposes to another Member State is allowed
with the possession of a simplified accompanying excise document (hereinafter:
PPTD) stipulated by Commission Regulation (EEC) No. 3649/92 of 17 December
1992 on a simplified accompanying excise document for intra-Community movement of products subject to excise duty which have been released for consumption
in the dispatching Member State (OJ L 369 18 12 1992, p. 17), unless otherwise
prescribed by the Excise Duties Act. PPTD is issued by the supplier on the prescribed
form in three copies.
i
Prior to dispatching excise products to another Member State the supplier or another
person who is liable to pay excise duty in the destination Member State shall ensure
that the competent authority of the destination Member State is informed about the
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intended shipment, ensure the payment of excise duty, pay excise duty in accordance
with conditions stipulated in the destination Member State, and enable the competent body of the destination Member State to check actual shipments of excise products to a recipient and that excise duty is actually paid.
i A supplier who ships excise products released for consumption in the Republic of Croatia to another Member State for commercial purposes is prior to shipment required to
submit to the competent customs office a Notification of proposed shipment of excise
products released for consumption in the Republic of Croatia (on the Form O-OP).
If a supplier wants excise duty refund, they are required to submit:
1. a request for excise duty refund to the competent customs office according to
their headquarters, i.e. place of residence,
2. a third copy of the Form PPTD verified in accordance with current legislation
of the destination Member State,
3. evidence from which it is evident that excise duty was paid in the Republic of
Croatia, as well as a document confirming that the payment of excise duty
was provided in the destination Member State,
4. all other evidence which the customs office, in accordance with the current
case, requests so as to determine the actual validity of the excise duty refund.
When a recipient in the Republic of Croatia receives excise products released for
consumption in another Member State, and the excise duty liability incurs even in
the Republic of Croatia, then the shipment must be accompanied by an excise document that a supplier issues in accordance with current legislation of the dispatching
Member State.
The recipient, i.e. another person who pays excise duty in the Republic of Croatia, is
required to:
1. inform in writing the competent customs office of the intended receipt of
excise products released for consumption in another Member State on Form
O-PP, and provide a security instrument for payment of excise duty before
shipping excise products from another Member States,
2. ensure that the competent customs office is able to check the receipt of excise
products and that excise duty is actually paid.
i
A recipient in the Republic of Croatia must confirm the receipt of excise products by
verifying the document that he/she must returned to the supplier no later than day
15 of the month following the month in which he/she received excise products from
another Member State. Prior to returning a certified copy of the document, the sender must submit it to the competent customs office for verification.
If excise products released for consumption in the Republic of Croatia are moved
from one location in the Republic of Croatia to another, or across the territory of
another Member State, the supplier issues a PPTD, while the shipment must be
moved according to the corresponding itinerary. In that case:
– a recipient must prior to shipping excise products announce their shipment
via the Form O-OP which he/she sends to the competent customs office in the
dispatch location,
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– a recipient must confirm the receipt of excise products by verifying a third
copy of the Form PPTD which he/she must return to the supplier within 5 days
from receiving excise products and is required to notify the customs office in
the destination location,
– a supplier and recipient must insure that the competent customs office is able
to check whether the recipient really received the excise products.
i
Instead of PPTD a commercial document may be used provided it contains the same
data as the PPTD, that the kind of data determined by the number corresponds to the
related fields in the PPTD, and that it contains the tag “Simplified accompanying
document (excise goods) for purposes of tax inspection”.
The movement of completely denatured alcohol between the Republic of Croatia
and other Member States shall be allowed only with PPTD.
i
Not deemed holding for commercial purposes in a Member State is the holding of excise products on board vessels on voyage through sea crossings between two Member
States or aircraft flying between two Member States, and which are not available for
sale when the vessel or aircraft is in the territory of one of these Member States.
Distance selling
i
Distance selling is deemed the movement of excise products released for consumption in one of the Member States and subsequently purchased by a person in another Member State which is not an authorized excise warehouse-keeper or a registered recipient without a registered business, and the supplier or someone on his
behalf directly or indirectly ships or transport them to a recipient in another member
State in which excise duty liability incurs.
A supplier from the Republic of Croatia who ships excise products to another Member State is required to:
1. prior to shipping excise products apply to the competent customs office and
submit a verified document of the competent state authority of the destination Member State which proves that payment of excise duty is ensured and
that all criteria for payment in the destination country are fulfilled, and
2. keep shipment records of excise products.
The foregoing is appropriately applied if excise products released for consumption in
another Member State are received by a person in the Republic of Croatia, and when
excise duty liability incurs in the Republic of Croatia.
Requirements from Items 1 and 2 must be met by the supplier, or their tax representative, and even the recipient if the supplier does not comply with the regulations.
A supplier or their tax representative submit via Form O-PP a Notification of proposed
receipt of excise products released for consumption in another Member State to a
competent customs office.
i A supplier is entitled to excise duty refund in the Republic of Croatia if they or their
tax representative acted in accordance with the prescribed procedure.
i
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Misuse of rights in the movement of excise products
Misuse of rights in the movement of excise products shall be deemed every action of
persons who are in any way directly or indirectly involved in the movement of excise
products focused on:
1. concealing the real intention, objective, or basis of disposition of excise products
2. evasion of excise duty liability or other public duties, including the creation of
conditions for avoiding payment of excise duty or other public duties.
i
Notwithstanding Items 1 and 2 it shall be deemed that persons who are in any way
directly or indirectly involved in the movement of excise products misuse rights in the
movement of excise products if they:
1. make fictitious or sham legal transactions relating to the movement of excise products or participate in the making or executing such legal transactions
2. organize fictitious deliveries, receipts, or movements of excise products or directly
or indirectly participate in them
3. misuse the Excise Movement Control System for depicting fictitious movements
4. directly or indirectly participate in the falsification of commercial, transport, or
other documentation relating to the movement of excise products or the use of
such counterfeit documents
5. unlawfully or arbitrarily use information about other natural persons or legal entities to perform or create conditions for performing operations, actions, and disposal of excise products
6. by misuse of trust and via fraudulent, false, or deceptive acts perform operations,
actions, or disposals of excise products or create conditions for such operations,
actions, or disposals.
If the basis for determining excise duty liability is misuse of rights in the movement
of excise products and if deemed connected to that is the existence of fictitious or
sham legal transaction or fictitious deliveries, receipts, or movements of excise products, then the basis for determining excise duty liability is a fictitious or sham legal
transaction, i.e. fictitious delivery, receipt, or movement of excise products. Any person who directly or indirectly participates in the conclusion or execution of such legal
transactions or deliveries, receipts, or movement of excise products shall act as a
paying guarantor for the payment of the incurred excise duty.
i
Any person for whom from objective circumstance follows that they knew or should
have known that with their actions or failures to take actions they take part in the
misuse of rights in the movement of excise products shall act as a paying guarantor
for the payment of the incurred excise duty. If the basis for determining excise duty
liability is misuse of rights in the movement of excise products, members of companies and persons engaged in leading companies cannot invoke the fact that they do
not answer legally for obligations of a company and such persons shall be personally,
severally, and with all their assets liable for the excise debt. Personally, severally, and
with all their assets liable for an excise debt shall also be a person who uses other
persons as its trustees, so that in a company someone else presents as a member, but
does this under orders and instructions of this person.
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EXCISE DUTY REFUND
1. The right to excise duty refund in the Republic of Croatia applies to:
• manufacturers of excise products who used excise products for which excise
duty was paid to manufacture new excise products,
• an exporter who exports excise products on which excise duty was paid,
• an exempt user who used excise products on which excise duty was paid for
prescribed purposes,
• a person who paid excise duty on energy products which are polluted or accidentally blended and returned to an excise warehouse for recycling
2. Entitled to an excise duty refund are legal entities or natural person who, in the
framework of their activities, ship excise products on which excise duty was paid
in the Republic of Croatia to another Member State
i
A supplier is entitled to excise duty refund if they delivered:
a) a request for excise duty refund to the competent customs office according to their
headquarters, i.e. place of residence,
b) a third copy of the Form PPTD verified in accordance with current legislation of the
destination Member State,
c) evidence from which it is evident that excise duty was paid in the Republic of Croatia, as well as a document confirming that the payment of excise duty was provided in the destination Member State,
d) all other evidence which the customs office, in accordance with the current case,
requests so as to determine the actual validity of the excise duty refund.
3. Entitled to an excise duty refund on tobacco products are payers of excise duty
on tobacco products that have become unusable due to changes in specific regulations governing the handling of tobacco products in circulation and which
were destroyed under customs supervision, unless they have become unusable
due to inadequate quality, age, or the inability to sell them that is not directly
related to changes of those regulations
4. The right to excise duty refund on energy products, specifically:
• unleaded petrol used to power fishing vessels for fishing purposes is exercised
by persons who were issued a fishing privilege by a ministry in charge of fishery and who are registered in the register of persons who have the right to
excise duty refund on unleaded petrol used in fishing,
• gas oil consumed to drive machines for preparing surfaces in mine clearing is
exercised by persons who possess a decision from the Ministry of Interior on
the approval of performing mechanical preparations of surfaces in demining,
use gas oil to power the machines and perform tasks of mechanical preparation of mine-suspected areas on the Croatian territory, and who are registered
in the register of persons who have the right to excise duty refund on gas oil
consumed for mechanical preparation of surfaces in mine clearing,
• exceptionally for energy products used as motor fuel in air traffic, except for
purposes of private flights, and the right to excise duty refund is exercised exclusively on energy products with which aircraft that perform commercial operations in air traffic are supplied in airports approved for use or other areas
outside the airport area with a certificate (from the airports), and is exercised on
159
the basis of an application submitted to the competent customs office according to the headquarters, i.e. place of residence, of the aircraft operator,
• on gas oil consumed to drive machines for preparing surfaces in mine clearing
by persons who possess a decision from the Ministry of Interior on the approval of performing mechanical preparations of surfaces in demining, and
exclusively use gas oil to power special machines and perform tasks of mechanical preparation of mine-suspected areas on the Croatian territory, and
who are registered in the register of persons who have the right to excise duty
refund on gas oil consumed for mechanical preparation of surfaces in mine
clearing,
• on unleaded petrol used to power appropriate voyage objects and voyage
vessels by persons who exercise the right to excise duty refund on unleaded
petrol used in domestic voyages for a period starting from the registration
date in the register of persons who have the right to excise duty refund, and
exercise this right on the basis of a request submitted to a competent customs
office. The ministry in charge of fishery determines the annual quota for the
consumption of unleaded petrol for beneficiaries of excise duty refund,
• on unleaded petrol used to power fishing vessels for fishing purposes and
entitled exclusively to beneficiaries of rights who were issued a privilege (quota) for fishing and who are registered in the register of persons who have the
right to a refund of excise duty that was paid on unleaded petrol used in fishing for a period starting from the registration date in the register of persons
who have the right to excise duty refund. The register of such beneficiaries is
organized and managed by the Customs Administration, and registration is
possible based on a request submitted to the customs office.
RECORDS
Name of the record
Who is liable for
keeping records
Records of the inventory of excise products by category and type, commercial name and CN tariff code (KN), quantities of produced excise products,
quantities of provided excise products with paid excise duty, quantities of
received excise products from other excise warehouses, from a plant of an
exempt user, and from import (including the quantities of excise products
that were reimported after the completed procedure of external production), quantities of dispatched excise products to another excise warehouse,
or the plant of an exempt user (including the export of excise products for
external production), quantities of dispatched excise products that are
exempt from excise duty, quantities of used excise product as raw material
for the production of other excise products in the excise warehouse, denaturing of alcohol, marking and coloring of gas oils, quantities of excise products released for consumption including quantities of excise products for
personal consumption, the amounts of excise duty charged and paid, referent numbers of each issued and received PTD, numbers of trade documents
for each dispatch or receipt of excise products, respective records about
imported/dispatched quantities of certain energy products (mentioned records are applicable on energy products and on electricity), and document
number
authorized excise
warehouse-keeper for each excise warehouse
160
Name of the record
Who is liable for
keeping records
Records of the received quantities of excise products in the system of deferred payments of excise duty by category, type and quantity, trade name
and tariff code KN, date of receipt, sender and the unique reference mark
e-TD, about excise products used for the purpose of excise supervision, established losses or shortage of excise products for which it is proven that are
attributable to unforeseen circumstances, or a higher power (other than
theft) or are inextricably connected to the characteristics of the products
formed during transport, amounts of calculated and paid excise duties
Records of the imported and dispatched quantities of excise products in the
system of deferred payments of excise duty by category, type and quantity,
trade name, date and place of shipment, recipient and the unique reference
mark e-TD, customs documents based on which the excise products that the
registered sender dispatches in the system of deferred payment of excise
duty are released in free circulation, excise products used for the purpose of
excise supervision during transport, established losses or shortage of excise
products for which it is proven that are attributable to unforeseen circumstances, or a higher power (other than theft) or are inextricably connected
to the characteristics of the products formed during transport
Records of the quantities of excise products by category and type of excise
product, trade name, date and place of shipment by the foreign seller to the
Republic of Croatia, about the recipient of excise products in the Republic of
Croatia, category and type and trade name of excise products released for
consumption on the territory of the Republic of Croatia, determined losses
or shortages of excise products for which it is proven that are attributable to
unforeseen circumstances or higher power (other than theft) or are inextricably connected to the characteristics of the products formed during transport, amounts of calculated and paid excise duties
Records on customers and sold quantities of excise products
registered recipient of excise products
registered sender
of excise products
tax representative
for distance sale
excise duty payers
and other legal
and natural persons that sell excise products
Records on the quantity and type of purchased solid fuels, solid fuels suppli- supplier and/or
ed to the final consumer, delivered solid fuels to the exempt user, delivered end consumer of
solid fuels free of excise duty payment due to further resale, solid fuels con- solid fuels
sumed for personal final use, solid fuels consumed that are exempt from
payment of excise duties and solid fuels supply
The records of the received quantities of excise products from excise ware- exempt user
houses and imported quantities of excise products that were imported in
the warehouse of the exempt user by the importer with a status in the
system of deferred payments of excise duty, the procured quantities of excise products with excise tax paid, the dispatched quantities of excise products in the excise warehouse with approval from the competent customs
office, the quantities of excise products that are exempted from payment of
excise duty, the amounts of produced products under its registered business
activities, the established losses or shortages of excise products for which it
is proven to be attributable to unforeseen circumstances, or a higher power
(other than theft) or are inextricably connected to the characteristics of the
products formed during transport, the status of the inventory of excise products, reference numbers of each PTD received, quantities of energy products with an indication of the numbers of common trade or commercial
documents relating to these energy products
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Excise taxpayers from tariff codes KN 2716 are obliged to keep records of the
quantities of electricity in MWh for quantity of electricity taken over, quantity of
electricity taken over from other Member States for their own purposes, quantity of
electricity taken over or imported into the Republic of Croatia for their own purposes,
quantity of electricity produced for their own needs, procured (taken over) quantity
of electricity that is exempt from excise duty payment, quantity of electricity delivered
to the end customer, quantity of electricity delivered that is exempt from excise duty,
quantity of electricity delivered for export, quantity of electricity consumed for their
own needs.
Excise taxpayers for natural gas from tariff codes KN 2711 11, 2711 21 and
gases from tariff code KN 2711 29, are obliged to keep records of the quantities
of natural gas in MWh for quantity of natural gas taken over, quantity of natural gas
taken over from other Member States for their own purposes, quantity of natural gas
taken over or imported into the Republic of Croatia for their own purposes, quantity
of natural gas produced for their own needs, procured (taken over) quantity of natural gas that is exempt from excise duty payment, quantity of natural gas delivered to
the end customer, quantity of natural gas delivered that is exempt from excise duty,
quantity of natural gas delivered for export, quantity of natural gas consumed for
their own needs.
Exempt users for electricity are required to keep records on quantities of electricity
taken over without paying excise duty, quantities of taken over electricity with paid
excise duty, used quantities of electricity for the purposes stated in Article 101 Paragraph 8 of the Act, produced quantities of product within the framework of their
registered business activities, issued invoices for performed deliveries of electricity.
Exempt users for natural gas are required to keep records on quantities of natural
gas taken over without paying excise duty, quantities of taken over natural gas with
paid excise duty, used quantities of natural gas for the purposes stated in Article 101
Paragraph 1 of the Act, produced quantities of product within the framework of their
registered business activities, issued invoices for performed deliveries of natural gas.
Exempt users for solid fuels are required to keep records on quantities of solid
fuels taken over without paying excise duty, quantities of taken over solid fuels with
paid excise duty, used quantities of solid fuels for the purposes stated in Article 101
Paragraph 1 of the Act, produced quantities of product within the framework of
their registered business activities, inventory of solid fuels, issued invoices for performed deliveries of solid fuels.
i
Apart from the mentioned records, the holders of excise warehouses and producers
of beer are also obliged to keep records of:
1. quantities produced of hot (cold) wort (diary of cooking and receiving of cold wart
in the fermentation room in the basement),
2. quantity of young beer in the process of ageing (diary of receiving the beer in the
aging basement and delivery of aged beer in filtration),
3. quantity of beer poured in bottles or containers (bottling plant report).
IMPORTANT NOTE: In order to implement tax supervision and inspection, the excise payer is obliged to keep issued and received invoices, associated excise docu-
162
ments, customs declarations, documents on the basis of which the same was approved the exemption from payment of excise duty, daily calculations of excise duty,
reports and all other accounting documents that are in any way related to the production, storage, import, entry, export and quantities of excise and other products
that are the subject of Excise Duties Act, and which are essential for the calculation
and payment of excise duty, within the time limit laid down by special regulations,
and the longest, 10 years after the end of the year to which the documents relate.
Excise taxpayers are required to submit the following excise forms electronically, using the electronic services of the Customs Administration e-Carina, application subsystem e-Tro{arina:
– Form PUR – application for entry into the register of excise duty payers
– Form DOT-PI – daily account of excise duties on beer
– Form DOT-AL – daily account of excise duties on alcohol and alcoholic beverages (except beer)
– Form MI-PI – monthly report concerning the state of stocks, produced, delivered, exported and imported quantities and calculated excise on beer,
– Form MI-AL – monthly report concerning the state of stocks, produced, delivered, exported and imported quantities and calculated excise on alcohol and
alcoholic beverages (except beer)
– Form ZT-DM – request for printing of tobacco stamps,
– Form ZI-DM – Request for taking over the tobacco stamps for marking the
tobacco products,
– Form ZI-IM – Request for taking over the tobacco stamps/stamps from other
Member States/other countries in order to export the products to the other
Member State/other country or third territory/passengers in airports,
– Form DP-U – Quantities of tobacco products received in the excise warehouse
under the excise-duty suspension system
– Form DP-I – Quantities of tobacco products dispatched from the excise warehouse under the excise-duty suspension system
– Form DUM-DM – Report on daily consumption of tobacco stamps,
– Form DUM-IM – Report on daily consumption of tobacco stamps/stamps
from other Member States/other countries in order to export the products to
the other Member State/other country or third territory/passengers in airports,
– Form DOT-DP – Daily excise duty account of tobacco products,
– Form DO-IM – Data on the quantities of tobacco products shipped from excise warehouse to export in the other Member State/other country or third
territory/passengers in airports,
– Form Z-ORT – List of cigarettes inventory with calculated excise-duty difference
– Form MI-C – monthly report concerning the state of stocks, produced, delivered, exported and imported quantities and calculated excise on cigarettes,
– Form MI-CR-CL – monthly report concerning the state of stocks, produced,
delivered, exported and imported quantities of cigars and cigarillos,
– Form MI-DP – Monthly report concerning the state of stocks, produced, delivered and imported quantities of smoking tobacco (fine-cut tobacco and other
smoking tobacco),
163
– Form MI-OT – Monthly report on calculated excise duty on the calculated excise duty on cigars, cigarillos and smoking tobacco (fine-cut tobacco and
other smoking tobacco),
– Form IZVJ-DUH – Report on status and movement of tobacco (raw material),
– Form P-MPC – Data on reported retail prices for the brand of tobacco products,
– Form DOT-EN – Daily excise duty account for energy products, with the Record for deduction of excise duty on energy products based on the reimbursement from Article 29 Paragraph 1 of the Excise duties Act
– Form MI-EN – Monthly report concerning the state od stocks, produced, delivered and imported quantities and calculated excise on energy products
(other than natural gas and solid fuels),
– Form MI-NA – Monthly report concerning the state of stocks, produced, delivered and processed quantities of crude oil and service processing of crude oil,
– Form MI-UTE – Report on the paid excise duty on energy products,
– Form MI-EL – Monthly report on paid excise duty on electricity,
– Form MI-PL – Monthly report on paid excise duty on natural gas and other
gasses from CN codes 2711 29 00,
– Form MI-KG – Monthly report on paid excise duty on solid fuels.
i
Obligation of filing the excise duty forms via Customs Administration’s electronic
service e-Carina does not apply to small producers of wine and on small producers of
strong alcoholic drinks.
Name of the form
I. ZAJEDNI^KI OBRASCI
PUR – Application for entry into the register of excise duty payers (Regulation
on Excise Duties – Appendix 19)
164
legal and natural persons who want to
do business with the excise products
(application for registration in the PUR is
submitted to the competent Customs
Office according to its registered office
or place of residence)
– authorized keeper of excise warehouses:
a) manufacturer
b) trader
– registered recipient
– occasional registered recipient
– the recipient of excise products with
paid excise duty
– seller from the other Member States/
representative for distance selling
– the manufacturer is outside the
suspension system-the manufacturer
is outside the suspension system
– a small manufacturer of strong alcoholic drinks (the information about
the volume of the boiler for the
production of alcohol in the
ownership or in use is submitted at
the same time)
– small wine manufacturer
8 days before the beginning of
the performance of registered
activities or other events that
constitute an activity subject to
excise duty
excise duty
excise duty
excise duty
Name of the form
– importer
– exempt user of excise products
– supplier of:
a) electricity
b) of natural gas and other gases
from CN 271 1 29 000
– supplier of solid fuels
– the end consumer of solid fuels
– the manufacturer referred to in
Article 94 of the Excise Duties Act
– the manufacturer referred to in
Article 96 of the Excise Duties Act
– the registered sender
– other excise duty payers
Kretanje na teritoriju Republike Hrvatske
e-TD-electronic excise duty the sender-certified keeper of excise
document
warehouse shall submit a draft of the
e-TD using the Customs Administration
IT system
the sender-certified keeper of excise
warehouse shall upon sending the
excise products via fixed pipelines
submit a draft of the e-TD using the
Customs Administration IT system
7 days prior to the date of shipment of the excise product stated on the e-TD, and at the latest on the day of shipment
after passing through the measuring system for dynamic and
continuously measurement the
quantity of a liquid other than
water and/or through a measuring vessel and a container with
suitable equipment
no later than the fifth working
day after the receipt of excise
duty products in the deferred
excise duty payment system
the recipient (the authorized keeper of
excise duty warehouses/competent
outbound Customs Office) of excise
duty products sends to the customs
administration IT system the confirmation of receipt
a printed version of the sender – authorized keeper of excise a document which must accompany the movement of excise
e-TD or a commercial duty warehouse:
products in the deferred excise
document containing a
duty payment system, and upon
unique reference
request it must be presented to
the competent authorities
the sender-certified keeper of excise must arrive to the destination
warehouse shall upon sending the no later than 24 hours from the
excise duty products via fixed pipelines shipment of excise products
PTD – accompanying exci- authorized keeper of excise duty ware- on the day of shipment
se duty document-Ordi- house (sender) shall deliver to the recinance on excise duty tax – pient (the exempt user)23
Appendix 4 (when the the recipient shall provide to the sen- five days from the excise duty
movement of excise duty der a certified copy of PTD certified by products receipt date
products in the deferred the competent authority
excise
duty
payment
system which takes place the sender who does not receive a cer- the tenth day after shipment
entirely in the territory of tified copy of the PTD must inform the
competent Customs Office
23
Appropriately applied when the excise duty products are shipped from the facility of the exempt
user to the excise duty warehouse, with the prior consent of the competent Customs Office.
165
Name of the form
when the excise duty products are being shipped
from the excise duty warehouse to the facility of the
exempt user and from the
facility of the exempt user
to the excise duty warehouse, with the prior consent
of the competent Customs
Office)
The paper print of cu- – authorized holder of excise warehou- 5 days from the date of entry
into the excise duty warehouse
stoms declaration sub- ses
or the facility of the exempt user
mitted via the electronic – exempt user of excise products
of excise duty products (it is
data exchange by which
submitted to the competent Cuthe excise duty products
stoms Office it which the import
were released for free circustoms clearance was perforculation if after the commed)
pletion of the customs
procedure of release for
free goods circulation the
excise duty products in the
deferred
excise
duty
payment system immediately enter in the excise
duty warehouse or the facility of the exempt user
E-movement between the Republic of Croatia and another Member State
e-TD-electronic excise duty the sender – certified keeper of excise - 7 days prior to the date of excidocument
duty warehouse or a registered sender se duty products shipment stashall submit a draft of the e-TD to the ted on the e-TD
Customs Office using the IT system
- latest the day of shipment
the recipient – the authorized keeper no later than the fifth working
of excise duty warehouses or the regi- day after the receipt of excise
stered recipient/ occasional registered duty products in the deferred
recipient submits to the Customs Offi- excise duty payment system
ce IT system the confirmation of receipt
A printed version of the sender – authorized keeper of excise upon the request of a competent body (the document must
e-TD or a commercial duty warehouse or registered sender
accompany the movement of
document containing a
excise duty products in the deunique reference and the
ferred excise duty payment
certificate of exemption
system and upon request it
from excise duty payments
must be presented to the comwhen the recipient is a
petent authorities)
person referred to in Article 29 of the Excise Duties Act in another Member
State
166
Name of the form
The movement of excise duty products released for consumption between Member States
PPTD (Ordinance on Excise the sender of excise products released prior to shipment of the excise
Duty – Appendix 6) – Sim- for consumption in the Republic of duty products to another Memplified accompanying exci- Croatia which are shipped for commer- ber State
se duty paper document cial purposes to another Member State
or a commercial document provided that it contains the same information as the PPTD, that the
type of data determined
by number corresponds to
a connected field number
in the PPTD and that it
contains the reference
“Simplified accompanying
document (excise duty
products) for the purposes
of tax control”
O-PP – Notification on the – the recipient who receives for prior to the receipt of excise
planned receipt of excise commercial purposes the excise duty duty products from other Memduty products released for products released for consumption ber States
consumption in another in another Member State
Member State (Ordinance – seller from other Member States or
on Excise Duty – Appendix his tax representative for distance sales
7)
O-PP- Notification on the – sender who ships for commercial prior to shipment of the excise
planned shipment of exci- purposes to another Member State duty products to another Memse duty products released the excise duty products released for ber State
for consumption in Repu- consumption in the Republic of Croblic of Croatia (Ordinance atia
on Excise Duty – Appendix – seller from the Republic of Croatia
when selling at a distance
8)
The fallback procedure
Form A – Fallback procedu- the sender is in the Republic of Croatia before the start of the movement
re – Accompanying docu- when the IT system is unavailable
ment for the movement of
excise duty products in the
deferred
excise
duty
payment system (Ordinance on Excise Duty – Appendix 1)
Form B – Fallback proce- the sender in the Republic of Croatia before the destination change
dure – Accompanying who during the movement of the excidocument for the destina- se duty products changes the destinatition change (Ordinance on on, and the IT system is not available
Excise Duty – Appendix 2)
Form C – Fallback proce- the recipient in the Republic of Croatia upon expiry of the fifth working
dure – Acknowledgement in the event of the system unavailability day from the excise duty products receipt date
of receipt/Confirmation of
export (Ordinance on Exci- the customs authority which perfor- immediately when the system
se Duty)
med the export formalities, if at the becomes available
completion of export the IT system is
not available
167
Name of the form
Calculation and payment of excise duty when encountering irregularities
Form TOP – excise duty a person who is not registered with the 5 days from the day when the
calculation
application excise duty payers register if the excise control which has determined
(Ordinance on Excise Duty duty due has originated because of ille- that excise duty products are fo– Appendix 9)
gal handling of excise duty products in und in circumstances resulting
circulation in the territory of the Repu- in the formation of excise duty
blic of Croatia
debt was performed
Insurance instruments of excise duty payments
Form A – bank guarantee Excise and/or customs debtor for to- – authorized keeper of excise
duty warehouse before the
for excise duty and cu- bacco products
authorization issuance
stoms debt and other import public duties on to– registered recipient prior to
the receipt of tobacco probacco products (Ordinanducts in the deferred excise
ce on Excise Duty – Apduty payments system
pendix 10) From May
2016 the request for bank
prior to authorization issuance
guarantee issuance for
– registered sender prior to the
raw tobacco shall be
shipment of tobacco products
submitted via Form B
to other Member States in the
deferred excise duty payments
system
– importer – before acquiring
tobacco stamps
– authorized keeper of excise
Form B – bank guarantee Excise duty debtor for:
duty warehouse before the
for excise duty debt (Ordi- – alcohol and alcoholic beverages
nance on Excise Duty - Ap- – energy (except for solid fuels and na- authorization issuance
– registered recipient prior to
pendix 11)
tural gas)
the receipt of excise duty proBy May 2016 the request – raw tobacco
ducts from other Member Stafor bank guarantee issuantes in the deferred excise duty
ce for raw tobacco was
payments system
submitted via form A
prior to authorization issuance
– registered sender prior to the
shipment of excise duty products to other Member States
in the deferred excise duty
payments system
– payer of excise duty on raw
tobacco before the issuance of
the authorization for business
operations with raw tobacco
Form C – bank guarantee the recipient, or other person who is prior to the shipment of excise
for excise duty debt (Ordi- required to pay the excise duty in the duty products from other Memnance on Excise Duty – Republic of Croatia and a tax represen- ber States
tative for the distance sale
Appendix 12)
Form D – bank guarantee registered sender and carrier, the prior to shipment of the excise
for excise duty debt (Ordi- owner of excise duty products, the re- duty products to another Memnance on Excise Duty – cipient or or 2 or more consolidated ber State
Appendix 13)
persons with the authorized keeper of
excise duty warehouse for shipment of
excise duty products in the deferred
excise duty payment system from the
Republic of Croatia to another Member
State
168
Name of the form
Form E – bank guarantee
for excise duty debt (Ordinance on Excise Duty –
Appendix 14)
registered recipient and occasional registered recipient, or other person who
is required to pay the excise duty in the
Republic of Croatia for the sale of excise duty products from another Member State in the deferred excise duty
payment system
the registered sender for the shipment
of excise duty products in the deferred
excise duty payment system from the
Republic of Croatia to another Member
State authorized holder of excise duty
warehouse
tax representative for distance sale
Request to use a cash de- excise duty debtor
posit as an insurance instrument for excise duty
(Ordinance on Excise Duty
– Appendix 15)
Confirmation on the use of the competent Customs Office
a cash deposit as an insurance instrument for excise
duty (Ordinance on Excise
Duty – Appendix 16)
Request for a return of the excise duty debtor who no longer wiscash deposit used as an in- hes to use cash deposit as an insurance
surance instrument for instrument for debt payment
excise duty (Ordinance on
OKTP – request for the aut- legal or natural person that wants to
horization issuance for do business in the deferred excise duty
exempt users of excise duty payment system as an exempt user
products (Ordinance on
II. ALCOHOL AND ALCOHOLIC BEVERAGES
ZT-AL – request for prin- – the authorized keeper of excise duty
ting special stamps to warehouse, registered recipient, any
mark the alcohol and alco- person who releases excise duty proholic beverages (Rulebook ducts or a person on whose behalf
on excise duties – Appen- such products are released from the
deferred excise duty payment system
dix 20)
– the importer of excise duty products,
– the manufacturer of excise duty products outside the deferred excise
duty payment system
– the buyer of excise duty products
already released for consumption in
another Member State which are
kept for commercial purposes on the
territory of the Republic of Croatia
for delivery or consumption
– seller from another Member State,
or his tax representative for distance
sales or the recipient of excise duty
products in the Republic of Croatia
prior to the shipment of excise
duty products from other Member States
prior to shipment of the excise
duty products to another Member State
before the excise duty goods are
shipped from other Member
States
simultaneously with the deposit
payment
after submitting the request to
use a cash deposit as an insurance instrument for excise duty
after payment of excise duty
debt or when submitting
another instrument for insurance of payments
latest 8 days before start of business operations in the deferred
excise duty payment system as
an exempt user
until the 5th day of the current
month for the following month
169
Name of the form
DOT-AL – daily calculation
of excise duty on alcohol
and alcoholic beverages
(except beer) for the period from ____ to ____ (Ordinance on excise duty –
Appendix 24)
P-AL – certificate of issuance/acquisition of special
stamps for labeling alcohol and alcoholic beverages on data number (Ordinance on excise duty Appendix 21)
MU-AL – monthly report on
acquired, consumed and
returned stamps for labeling alcohol and alcoholic
beverages for the period
from ____ to ____ (Ordinance on excise duty – Appendix 22)
DOT-PI – daily calculation
of excise duty for beer, for
the period from ____ to
____ (Ordinance on excise
duty Appendix 23)
Form MI-PI – monthly report concerning the state
of the inventory, received,
entered, produced, delivered, shipped and imported
quantities and the calculated excise duty on beer for
duty - Appendix 25)
Form MI-AL – monthly report concerning the state
quantities and the calculated excise duty on alcohol
and alcoholic beverages
(except beer) for the period from to (Ordinance on
excise duty – Appendix 26)
170
same as with ZT-AL, except the impor- for the period from the 1st to
ters of excise duty products
15th of the month – to the 20th
in the same month for the period from the 16th to the last day
of the month – until the to 8th
of the following month
authorized person of the Customs offi- before the takeover of stamps
ce shall issue the stamps to the applicant on the basis of the Certificate of
issuance/acquisition of stamps
excise duty payer for alcohol and alco- until the 20th day of the current
holic beverages
month for the preceding month
same as with ZT-AL, except the impor- for the period from the 1st to
ters of excise duty products
occasional registered recipient
the following business day from
the day of occurrence of calculation
until the 20th day of the month
Same as with ZT-AL
– the payers of excise duty on beer as for the preceding month
an integral part of the MI-PI form until the 20th day of the month
shall submit a specification of the for the preceding month
beer quantity released for consumption in the Republic of Croatia, according to the product trade name and
the volume share of actual alcohol as
indicated on the product
– authorized keepers of excise duty warehouses are required to, together
with the monthly report for the December, enclose the inventory list
with balance on December 31st
occasional registered recipients and until the 20th day of the month
importers of alcohol and alcoholic be- for the previous month (only for
verages
the month in which entries happened, that is, import)
Name of the form
O-MPV – Notification on
received quantities of wine
payment system by the
small manufacturers of
wine from other European
Union Member States (Ordinance on excise duty –
Appendix 5)
GI-MPV – annual reports
on production, shipments
and wine inventory for the
year ____ (Ordinance on
Information on volume of
the owned or used appliance (boiler) for the production
of
alcohol
(submitted along with
PUR form)
GI-MP-JAP – annual report
on the total amount of produced strong alcoholic beverages for personal needs,
the volume of the boiler
and the calculated excise
duty for the period from
___ to ___ (Ordinance on
III. TOBACCO PRODUCTS
ZT-DM – Request for printing tobacco stamps (Ordinance on excise duty – Appendix 29)
the recipient in the Republic of Croatia 5 days from the day of receipt
when receiving wine from another
Member State which is in accordance
with the regulations of the competent
authority of that Member State exempt
from the mandatory requirements related to the wine production, storage
and movement in the deferred excise
duty payment system
Small wine manufacturer
until January 31st of the current
year for the previous year
A small manufacturer of strong alco- no later than 8 days before the
holic drinks
start of production
A small manufacturer of strong alco- until January 20th of the current
holic drinks
year for the previous year
month for the following month
no later than 30 days prior to
submitting the application for
the acquisition of tobacco
stamps in order to label tobacco
products
ZI-DM – Request for to- payer of excise duty for tobacco pro- - at the request of excise duty
bacco stamps acquisition ducts
payers (for the purposes of the
for labelling tobacco proapplication of Article 78 Paraducts number ____ on
graphs 1, 4, 5 and 6 of the
date ____ (Ordinance on
Excise Duties Act)
- in the case when tobacco products which are not labeled by
tobacco stamps MF are placed
in the excise duty warehouse,
the authorized keeper of excise
duty warehouse is obliged to
submit to the Customs Office a
request for stamp acquisition
no later than the next business
day from the date of receipt of
tobacco products to the excise
duty warehouse;
payer of excise duty for tobacco products
the payer of excise duty for tobacco
products who submits an application
for the first time or requests a larger
amount of stamps than usual
171
Name of the form
ZI-IM – Request for acquisition of tobacco stamps/
stamps from other Member States/stamps of other
countries in order to ship
to other Member States/
third country or third territory/to the passengers in
airports number ____ on
duty – Appendix 31)
DP-U – Quantities of tobacco products received to
the excise duty warehouse
payment system (Ordinance
on excise duty – Appendix
32)
DP-I – Quantities of tobacco
products shipped from the
excise duty warehouse in
the deferred excise duty
payment system (Ordinance
33)
DUM-DM – Daily consumption of tobacco
stamps on the day according to the request for tobacco stamps acquisition
number ____ on ____ (Ordinance on excise duty –
Appendix 34)
172
The request shall be submitted
to the manager of the main treasury (payer of excise duty for
tobacco products, except for the
manufacturer of authorized keeper of excise warehouse) and to
the auxiliary treasury handler
(the authorized keeper of excise
duty warehouse – manufacturer
of tobacco products)
authorized keeper of excise duty ware- shall be submitted to the auxihouse – manufacturer of tobacco pro- liary treasury handler, for the
ducts
purposes of the application of
Article 78, Paragraphs 2 and 3
of the Excise Duty Act
authorized keeper of excise duty ware- next working day from the day
house for tobacco products
the tobacco products entered
(to be submitted to the Central
Office)
authorized keeper of excise duty ware- next working day from the day
house for tobacco products
of tobacco products shipment
from the excise duty warehouse
(to be submitted to the Central
Office)
payer of excise duty for tobacco pro- the next business day from the
ducts
date of production (to be delivered to the auxiliary treasury handler via the e-Customs electronic
service)
payer of excise duty for tobacco pro- the next business day from the
ducts, except for the manufacturer day of production/ from the day
authorized keeper of excise duty ware- of the release of tobacco products into free circulation/ from
house
the date of receipt from another
Member State/ from the day of
attaching the stamps, and in
any other case by the deadline
of 60 days counting from the
day the tobacco stamps were
acquired
Name of the form
DUM-IM – Report on daily
consumption of tobacco
stamps/stamps from other
Member
States/stamps
from third countries in order
to export the products to
another Member State/third
country or third territory/
passengers in airports on
the day according to the request for acquisition number __ on __ (Ordinance on
DOT-DP – Daily calculation
of excise duty on tobacco
products on ____ (Ordinance on excise duty – Appendix 36)
DO-IM – Information on
the quantities of tobacco
products shipped from
excise
warehouse
to
another Member State/
third country or third territory/to passengers in airports on ___ (Ordinance on
Z-ORT – Record of cigarettes inventory list with
calculated difference of
excise duty (Ordinance on
MI-PI – monthly report
concerning the state of
the inventory, received,
quantities and the calculated excise duty on cigarettes for the period from
____ to ____ (Ordinance
39)
authorized holder of the excise duty the next business day from the
warehouse – manufacturer
date of production (to be delivered to the auxiliary treasury handler)
payer of excise duty for tobacco pro- the next business days from the
ducts (except importers)
day the obligation of calculating
excise duty occurred (to be
submitted to the competent Customs Office according to the
seat of the payer), or the next
business day from the date of
sale to the passengers in separated outlets of excise duty warehouses in airports who are travelling to another Member State
(to be delivered to the Central
Office)
authorized holder of the excise duty the next business day from the
date of shipment of tobacco
products from an Excise warehouse to another Member State, or to a third country or third
territory (to be delivered to the
auxiliary treasury handler)
payer of excise duty for tobacco pro- 8 days from the cigarettes inducts and any other person who holds ventory list
cigarettes for sale (kiosks, shops, restaurants, and other retail outlets that
hold cigarettes for sale to end consumers)
payer of excise duty for tobacco pro- – to the 20th day of each month
ducts, other than an authorized keeper for the previous month (to be
of excise duty warehouse who sells to- submitted to the competent
bacco products in separated retail Customs Office according to
outlets of excise duty warehouses at the taxpayer’s registered office).
airports to passengers travelling to Authorized keepers of excise
another Member State or to a third co- duty warehouses are required
untry or third territory
to, along with the monthly report for December, enclose the
inventory list (inventory) with
balance on December 31st
and importer of tobacco products submit the report only for
the month in which entries happened, that is, import
173
Name of the form
MI-CR-CL – Monthly report concerning the state
quantities of cigars and
cigarillos for the period
from ____ to ____ (Ordinance on excise duty – Appendix 40)
MI-DP – Monthly report
concerning the state of
the inventory, received,
quantities of smoking tobacco (finely cut tobacco
and other smoking tobacco) for the period from
____ to ___ (Ordinance on
MI-OT – Monthly report
on calculated excise duty
on cigars, cigarillos and
smoking tobacco (finely
cut tobacco and other
smoking tobacco) for the
period from __ to __ (Ordinance on excise duty –
Appendix 42)
IZVJ-DUH – Report on the
condition and movement
of tobacco (raw material)
for the period from ____
to ____ (Ordinance on
P-MPC – Data on reported
retail prices for the brand
of tobacco products (Ordinance on excise duty – Appendix 44)
174
payer of excise duty for tobacco pro- – to the 20th day of each month
ducts, other than an authorized keeper for the previous month (to be
of excise duty warehouse who sells to- submitted to the competent
bacco products in separated retail Customs Office according to
outlets of excise duty warehouses at the payer’s registered office)
airports to passengers travelling to Authorized keepers of excise
another Member State or to a third co- duty warehouses are required
to, along with the monthly reuntry or third territory
port for December, enclose the
inventory list (inventory) with
the balance on December 31st.
and importer of tobacco products submit the report only for
the month in which entries happened, that is, import
authorized holder of the excise duty to the 20th day of the month
for the previous month (to be
submitted to the competent Customs Office according to the
taxpayer’s registered office)
payer of excise duty for tobacco pro- 15 days prior to the release of
tobacco products for consumpducts
tion (submitted to the Central
Office), i.e. 2 days from the day
the Decree of the Government
of the Republic of Croatia which
increases the amount of excise
duty on cigarettes comes into
force when the increase of cigarette retail price is reported
(submitted via the e-Customs eExcise duty electronic service.
Exceptionally it can be submitted
on paper if the deadline of 2
days report the increase in the
cigarette retail price is applied)
Name of the form
O-PD – Information on the user of the authorization for business
planned the receipt of raw operations with raw tobacco who imtobacco from another ports the raw tobacco in the Republic
Member State or the shi- of Croatia or exports it from the Repupment of raw tobacco blic of Croatia
from the Republic of Croatia (Ordinance on excise
duty – Appendix 45)
IV. ENERGY PRODUCTS AND ELECTRICITY
DOT-EN – Daily calculation – payers of excise duty on energy proof excise duty on energy ducts24
products for the period
from ____ to ____ (Ordinance on excise duty Appendix 47
MI-EN – Monthly report payers of excise duty on energy proconcerning the state of duct except the excise duty payers rethe inventory, received, ferred to in Article 94, 96 and 98 of the
entered, produced, shi- Act
pped and imported quan- importers of energy products
tities and the calculated
excise duty on energy pro- occasional registered recipient who
ducts (except natural gas occasionally receives excise duty proand solid fuels) for the pe- ducts from other Member States in the
riod from ____ to ____ deferred excise duty payment system
(Ordinance on excise duty
– Appendix 48)
no later than 24 hours prior to
import/export inform the Customs Office – Excise Duty Liaison Office on the intended import/export of the raw tobacco
for the period from the 1st to
until the 20th day of the month
for the preceding month
– until the 20th day of the
month for the previous month
(only for the month in which
import happened)
– until the 20th day of the
month for the previous month
only for the month in which
import happened
MI-NA – Monthly report authorized holder of the excise duty until the 20th day of the month
concerning the state of warehouse – energy manufacturer
stocks, produced, delivered and processed quantities of crude oil and service
processing of crude oil ffor
____ (Regulation on Excise
Duties – Appendix 49)
MI-UTE – Report on collec- payers of excise duty on energy pro- until the 8th day of the month
ted excise duty on energy duct except the excise duty payers re- for the previous month
products for the period ferred to in Article 94, 96 and 98 of the
from ____ to ____ (Ordi- Act
nance on excise duty – Ap- occasional registered recipient who to the 20th day of the month
pendix 50)
occasionally receives excise duty pro- for the previous month (only for
ducts from other Member States in the the month in which entry hapdeferred excise duty payment system
pened)
24
Except: suppliers of electricity who deliver electricity to the end customer in the Republic of
Croatian, the suppliers who import or export electricity for their own use, the manufacturers
who use the produced electricity for their own purposes, gas suppliers when the natural gas is
delivered to the end customer in the Republic Of Croatia, the suppliers who import or export
natural gas for their own consumption, gas manufacturers who use the produced natural gas
for their own consumption, the suppliers when they deliver solid fuels to the end consumer in
the Republic of Croatia and when solid fuels are used for their own end consumption, end
consumer when importing or exporting solid fuel for their own end consumption.
175
Name of the form
STATEMENT number/on
import of energy products
referred to in Article 85 of
the Excise Duties Act for
which there is no prescribed amount of excise duty
in Article 84 Paragraph 3
of the Act (Ordinance on
Excise Duty – Appendix
51)
STATEMENT number/on
purchase of energy products referred to in Article
85 of the Excise Duties Act
for which there is no prescribed amount of excise
duty in Article 84 Paragraph 3 of the Act (Ordinance of Excise Duty – Appendix 52)
O-PL – Information on
planned import/ export of
lubricating oil or lubricants
from tariff codes CN 2710
19 91 and 2710 19 99 and
products from the tariff codes CN 3826 000 90) from/
to another Member State
– Appendix 53)
MI-EL – Monthly calculation of excise duty for
energy products for the
period from ____ to ____
– Appendix 54)
MI-PL – Monthly report on
excise duty on natural gas
and other gasses from CN
2711 29 00 for the period
from ____ to ____ (Ordinance of excise duty – Appendix 55)
MI-KG – Monthly calculation of excise duty on solid
fuels for the period from
____ to ____ (Ordinance on
Form of EKO-PG – records
of the customers of marked gas oils for the heating purposes for month
____ / year ____ (Ordinance of excise duty – Appendix 46)
176
an importer who after the completion
of the customs procedure of release
for free circulation will not use the
energy product as engine fuel or heating fuel or as a supplement to engine
fuel
before releasing for consumption the energy products which
are not being used as engine
fuel or heating fuel or as a
supplement to engine fuel
a buyer who after the completion of
the customs procedure of release for
free circulation will not use the energy
product as engine fuel or heating fuel
or as a supplement to engine fuel
before releasing for consumption the energy products which
are not being used as engine
fuel or heating fuel or as a
supplement to engine fuel
the recipient/sender, carrier or other no later than 12 hours before
person who imports into the Republic the import (submitted by e-mail:
of Croatia or exports from the Republic ELO@carina.hr)
of Croatia energy products and products with tariff codes
KN 2710 19 91, 2710 19 99 and KN
3826 00
90
excise duty payer for electricity from to the last day in the current
the tariff code KN 2716
month at the end of the accounting period
excise duty payer for electricity from to the last day in the current
the tariff code CN 2711 11, 2711 21 month at the end of the acco29
unting period
payer of excise duty on solid fuels from to the last day in the current
the tariff codes KN 2701, 2702 and month at the end of the acco2704
unting period
excise duty payers and other legal and upon the request of the Cunatural persons that sell marked gas stoms Office
oils for heating purposes
i
For energy products used for other purposes and not as engine fuel, or heating fuel
or as a supplement to engine fuel, or heating fuel from Article 85 Paragraph 1 of the
Act for which there is no prescribed amount of excise duty in Article 84 Paragraph 3
of the Act the excise duty payers do not submit Form MI-EN, but are obliged submit
to the competent Customs Office to the 20th day of each month for the past month
the specification of these energy products, and in accordance with the type of energy
products by code and the tariff code of the Combined Nomenclature, the trade
name, quantity, the sender and the receipt date.
Forms for the control of gas oils consumption colored in blue for the purposes of agriculture, fishing and aquaculture, and navigation
Name of the form
Deadlines for the submission
PUR-RIBA – Request for the registration in the register of the users
of rights to a refund of paid excise duty on unleaded motor gasoline on unleaded motor gasoline
for the purpose of fishing for the
calendar year ____ (Appendix 6)25
ZRB – Request for refund of paid
excise duty on unleaded motor
gasoline for the purpose of fishing for a period ffor the period
from ____ to ____, calendar year
____ (Appendix 4)26
users the right who are registe- is submitted to the compered with the registry of the tent Customs Office for
user of the right to a refund of each calendar year
paid excise duty on unleaded
motor fuel for the purposes of
fishing
EPB – Record on the consumption
of unleaded motor gasoline for
the purpose of fishing for a period for the period from ____ to
____, calendar year ____ (Appendix 5)26
EKG-DP – Record on the buyers of
gas oils colored blue who purchased the fuel for further sales (Appendix 3)26
PUR-B – Request for registration
in the register of users of refunds
of paid excise duty for unleaded
motor gasoline for uses in navigation (Appendix 5)26
upon the request of the Customs Office
the user of the right to a refund of paid excise duty on
unleaded motor for the purpose of fishing who is registered
in the registry of the users of
the right to a refund of paid
excise duty
users the right who are registered with the registry of the
user of the right to a refund of
motor fuel for the purposes of
fishing
excise duty payers and other
legal and natural persons that
sell gas oils colored blue
until the last day of the
month for the previous period of four months
users of the right to a refund for each calendar year
of paid excise duty on unleaded motor gasoline in national
navigation
Ordinance on the application of the Excise Duty Act that relates to gas oil painted in blue for
the purposes of agriculture, fishing, and aquaculture and to the refund of paid excise duty on
unleaded motor gasoline for the purpose of fishing.
26
Ordinance on the conditions and manner of exemption from the payment of excise duty on
energy products that are used as a engine fuel for navigation.
25
177
Name of the form
ZPB – Request for a refund of paid
gasoline in national navigation
(Appendix 3)26
users of the right who are registered with the registry of the
motor fuel in national navigation
users of the right who are registered with the registry of the
motor fuel in national navigation
users of the right to a refund
of paid excise duty on unleaded motor gasoline used to
operate public ships, boats
and small boats and ships, boats and small boats that are
used for the purposes of public
authorities for navigation
every four months in a calendar year
EPB – Record on consumption of
unleaded motor gasoline in national navigation for a period from
to month in a calendar year (Appendix 4)26
ZPJT – Request for refund of paid
gasoline in national navigation for
a period for the period from ____
to ____, calendar year ____ – (Appendix 6)26
EPJT – Record on public consumption for public ships and boats
(Appendix 7)26
EKG-DP – Record on the buyers of excise duty payers and other
gas oils colored blue who purcha- legal and natural persons that
sed the fuel for further sales (Ap- sell gas oils colored blue
pendix 2)26
every four months in a calendar year (with the ZPB
form)
every four months in a calendar year
every four months in a calendar year (with the ZPJT
form)
Ordinance on the conditions and manner of exemption from the payment
of excise duty on energy products which are used as a engine fuel in air
traffic.
Name of the form
PUR-Z – Request for the registration in the register of the users of
right to a refund of paid excise
duty for energy products used in
performing commercial operations in air traffic
ZPZ – Request for refund of paid
excise duty for energy products
used in performing commercial
operations in air traffic for a period for the period from ____ to
____, calendar year ____
a user of engine fuel in air is submitted for each calentraffic
dar year
the user of engine fuel for the – by the end of May for the
performance of commercial period of January-April
– until the end of Septemoperations in air traffic
ber for the period MayAugust
– by the end of January for
the period of SeptemberDecember of the previous
calendar year
EPZ – Record on the consumption the user of engine fuel for the with the ZPZ form
of energy products used in perfor- performance of commercial
ming commercial operations in operations in air traffic
air traffic for the period from ____
to ____, calendar year ____
178
Name of the form
ZPJZ-Z – Request for refund of public body as a user of engine – by the end of May for the
period of January-April
paid excise duty for energy pro- fuel in air traffic
– until the end of Septemducts used in performing
ber for the period Maycommercial operations in air
August
traffic for the period from ____ to
– by the end of January for
____, calendar year ____
the period of SeptemberDecember of the previous
calendar year
EPJT-Z – Record on the consump- public body as a user of engine with the ZPJZ-Z form
tion of energy products used in fuel in air traffic
commercial air traffic for the period from ____ to ____, calendar
year ____
The forms from the Ordinance on the conditions and manner of refund of
paid excise duty on gas oil used to operate machinery for the surface preparation in demining
Name of the form
ZPR – Request for a refund of paid
excise duty on gas oil used to operate machinery for the surface
preparation in demining for the
period from ____ to ____, calendar year ____ (Appendix 2)
legal entities and natural persons to whom the Ministry of
the Interior has issued a resolution on the authorization to
conduct the operations of surface machine preparation in
demining
(contractors
or
subcontractors)
after the issuance of a certificate on area and/or building exclusion out of the
MSP, and at the latest by
the end of the first quarter
of the calendar year that
follows the year in which
the certificate on area and/
or building exclusion out of
the MSP was issued
with the ZPR form
ERSR – Records on operation of
the machinery for the surface preparation in demining (Appendix 3)
EK – Record on the purchase of
gas oil used to operate machinery
for the surface preparation in demining for the period from ____
to ____, calendar year ____
(Appendix 4)
with the ZPR form
Note: The mentioned forms are a constituent part of the Ordinance on the conditions and manner of refund of paid excise duty on gas oil used to operate machinery
for the surface preparation in demining.
179
Name of the form
P-DIP – Application for diplomatic and consular offices, inthe refund of VAT
ternational organizations and EU institutions and bodies with registered
office in the Republic of Croatia and
their staff
IOU – Certificate on the diplomatic and consular offices, inright on direct exempti- ternational organizations and EU inon from the payment of stitutions and bodies with registered
customs duty, VAT, exci- office in the Republic of Croatia and
se duty and special im- their staff
port tax
KG – Fuel card
diplomatic and consular offices, international organizations and EU institutions and bodies with registered
their staff
– Certificate on the diplomatic and consular offices, inexemption from value ternational organizations and EU inadded tax and/or exci- stitutions and bodies with registered
se duty
– Notification on the re- their staff who have the right on the
ceipt of excise duty exemption from payment of taxes
when purchasing goods or services
products
in another EU Member State
Certificate of exemption diplomatic and consular offices, spefrom the value added cial missions, international organizations and their diplomatic, adminitax and/or excise duty
strative and technical staff with registered office in another EU Member
State when acquiring goods or services from a VAT taxpayer or authorized keeper of excise duty warehouses in the Republic of Croatia
no later than 12 months after
the expiration of the quarter to
which the application refers
(submitted to the Ministry of
Foreign and European Affairs)
directly upon import of goods in
the Republic of Croatia and in
separate specialized retail outlets
in the Republic of Croatia (document verified by the Ministry of
Foreign and European Affairs)
directly when purchasing motor
fuels in the Republic of Croatia
(certificate of the excise tax
payer is verified by the Ministry
of Foreign and European Affairs)
no later than 5 working days
after the receiving date of excise products (submitted to the
competent customs office
branch)
when purchasing goods or services the certified copy of the
certificate of exemption issued
by the competent body of the
state where they have a registered office is handed over to
the suppliers of goods, services
and excise duty products in the
Republic of Croatia
Excise duty payer
Excise duty payer (in general)
The excise duty payer for electricity from the
tariff code CN 2716
Excise duty payer for natural gas from the tariff
code CN 2711 11, 2711 21 and 2711 29
Excise duty payer for solid fuels from the tariff
codes CN 2701, 2702 and 2704
Tax representative for distance sale
A small manufacturer of strong alcoholic drinks
Deadline for excise duty payment
30 days from the day the obligation of calculating excise duty occurred
to the last day in the current month at the end
of the accounting period
after the receipt of excise duty goods
until January 31st of the current year for the
previous year
Upon the import of excise duty products, the excise duty is paid in accordance with
customs regulations, except when the payment of excise duty is deferred, or when it
is differently stipulated.
180
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1058
Excise duty on energy products
1163
Excise duty on natural gas
1066
Excise duty on alcohol
1074
Excise duty on beer
1090
Excise duty on tobacco products
1155
Excise duty on electric energy
1171
Excise duty on solid fuels
TAX REGULATIONS
Excise Duties Act (Official Gazette No. 22/13, 32/01, 81/13, 100/15, 120/15),
Regulation on the Amount of Excise Duty on Motor Fuels, Gas Oil and Kerosene
for Motor Fuel (Official Gazette No. 109/13, 48/14, 43/15),
Regulation on the amount of excise duty on cigarettes, fine-cut tobacco and
other smoking tobacco (Official Gazette No. 43/15),
General Tax Act (Official Gazette No. 147/08, 18/11, 78/12, 136/12,
Regulation on Excise Duties (Official Gazette No. 131/15, 45/16),
Ordinance on filing of excise forms and special tax forms using the electronic
data interchange system (Official Gazette No. 144/14),
Ordinance on the Application of the Excise Duty Act to Gas Oil Marked Blue for
the Purposes of Agriculture, Fishing, Aquaculture and the Refund of Paid Excise
Duty on Unleaded Motor Gasoline for the Purposes of Fishing (Official Gazette
No. 2/16),
Ordinance on the Conditions and Manner of Exemption from the Payment of
Excise Duty on Energy Products Used as Engine Fuel in Air Traffic (Official Gazette
No.83/15),
181
Ordinance on the Conditions and Manner of Exemption from the Payment of
Excise Duty on Energy Products Used as Engine Fuel for Navigation (Official Gazette No. 58/13, 72/13, 69/14, 157/14),
Ordinance on Completing the Single Administrative Document (Official Gazette
No. 77/13),
Ordinance on Temporary Goods Warehousing and Short Declaration (Official Gazette No. 68/13),
Ordinance on the Conditions and Manner of Use of the Reserve Procedure in the
Procedures of Transit and Export (Official Gazette No. 79/11),
Ordinance on the Conditions and Manner of Refund of Paid Excise Duty on Gas
Oil Used to Operate Machinery for Surface Preparation in Demining (Official Gazette No. 131/15),
Ordinance on EORI Number (Official Gazette No. 64/13, 89/13),
Ordinance on Determining Official Sites (Official Gazette No. 5/14),
Regulations on Exemption of Value Added Tax and Excise Duty for Goods Imported
in Personal Luggage of Persons Travelling from Third Countries and for Goods Imported as Small Value Non-Commercial Items (Official Gazette No. 79/13),
Decision on Support for Employers and Individual Taxpayers in Flood-affected
Areas (Official Gazette No. 72/14),
1.4.2 SPECIAL TAXES ON MOTOR VEHICLES
1.4.2.1 Motor vehicle that at the moment of entry,
import or sale in the Republic of Croatia do
not have a special tax calculated and paid,
and that are registered in the Republic of
Croatia
TAXABLE PERSONS
1. Physical and legal person who for use on the roads in the Republic of
Croatia acquires a motor vehicle in the Republic of Croatia, or any person who imports or introduces into the Republic of Croatia such motor
vehicles on which special tax was not calculated and paid,
2. a person who has repurposed another motor vehicle so that it becomes
a motor vehicle subject to taxation,
3. a person who has illegally used a motor vehicle on the territory of the
Republic of Croatia.
182
i
An illegal use of the motor vehicle is any use, possession, and factually or legally disposition of a motor vehicle on which special tax was not calculated or paid in the
prescribed manner in the Republic of Croatia. Person who has illegally used a motor
vehicle on the territory of the Republic of Croatia is deemed to also be the person
who has participated in illegal use motor vehicle on the territory of the Republic of
Croatia and the same knew or must have known according to the case circumstances
that such actions were illegal, and person who acquired a motor vehicle by ownership or acquisition, even though at the time of acquisition or receipt of the motor
vehicle they knew or must have known according to the case circumstances that the
motor vehicle is being illegally used on the territory of the Republic of Croatia.
If there is more than one person responsible for the payment of the special tax, they
are jointly liable for the payment.
NOTE: The natural or legal person with residence or registered seat in the Republic
of Croatia who lease, take in leasing or loan a motor vehicle registered in another
Member State for the purpose of use on the roads in the Republic of Croatia for
more than 15 days shall report this to the Customs Office within 3 days from the day
of entry in the territory of the Republic of Croatia, and in the further period of 15
days from the report date shall submit a tax report to the competent Customs Office
according to its registered seat or place of residence for the calculation and payment
of special tax. Failure to report a motor vehicle to the competent Customs Office
within the prescribed time limits is considered to an illegal use of a motor vehicle on
the territory of the Republic of Croatia.
A person who has borrowed a motor vehicle, and the lessee or the leasing holder
may at the earliest 14 days prior to the termination of the loan, i.e. the expiry or
early termination of the lease or leasing agreement, report a motor vehicle to the
Customs office where the tax report was submitted which will then determine the
refund amount of the special tax.
The manufacturer, trader and used vehicle trader shall submit to the competent Customs Office according to the location of their registered seat or place of residence no
later than 8 days before the beginning of production or sale activities of motor vehicle on the territory of the Republic of Croatia an application for the registration in the
registry of manufacturers and traders of motor vehicles.
Manufacturer and traders are obliged to deposit along with the request for registration in the register of manufacturers and traders of motor vehicles an insurance instrument for special tax payment which can be in the form of bank guarantees
whose duration must not be shorter than the period in which the payment obligation can arise, extended for three months, or blank promissory notes or debentures.
i
The Customs Office shall decide on the acceptance of the insurance instrument for
special tax payment, and it determines the height of insurance depending on the
amount of possible debt based on the special tax. The Customs Office can allow
other person than the manufacturer and the trader deposits that insurance instrument.
183
If the same person is a trader and a used motor vehicles trader, when submitting the application for registration in the register, it shall specifically inform
the competent Customs Office of this fact.
If the manufacturer, trader or used motor vehicles trader stop performing the
activity, the Customs Office shall at his request or ex officio delete them from
the register of manufacturers and traders of motor vehicles.
The manufacturer, the representative office of the manufacturer in the Republic of
Croatia and the trader who is a general representative or importer of certain brands of
motor vehicles in the Republic of Croatia or similar is obliged to submit electronically
to the Customs Office, Central Office e-mail address motorna.vozila@carina.hr, the
notification on the recommended sales price, and no later than the next business day
after the date of the sale price application on the market in the Republic of Croatia.
THE EXEMPTIONS AND EXCLUSIONS FROM THE SPECIAL TAX
PAYMENT
Special tax is not paid on motor vehicles if they are intended for:
1. official needs of diplomatic and consular offices and special missions accredited in the Republic of Croatia, on condition of reciprocity, with the exception
of consular offices lead by honorary consular officers,
3. needs of international organizations, when stipulated in international agreements applying to the Republic of Croatia,
4. personal needs of international organizations’ staff, when stipulated in international agreements applying to the Republic of Croatia,
5. use in accordance with an international agreement between the Republic of
Croatia and another state or an international organization, if such an agreement for the delivery of motor vehicles provides an exemption from the payment of value added tax,
6. official purposes of the EU institutions in the Republic of Croatia,
7. personal use of international staff of EU institutions in the Republic of Croatia.
Exemption from the payment of special tax referred to in Items 1, 2, 6 and 7 shall be
granted on the basis of certification by the ministry competent for foreign affairs, and
the exemption referred to in Items 3, 4 and 5 on the basis of certification of the competent state authority responsible for the implementation of the particular international agreement. If, under an international agreement, the exemption can be granted only on condition of reciprocity, the ministry competent for foreign affairs shall
confirm that the condition of reciprocity is satisfied.
i The exemptions from payment of special tax referred to in Items 2, 4 and 7 may not
be granted to the citizens of the Republic of Croatia or foreign nationals having with
permanent residence in the Republic of Croatia.
i The motor vehicles on which no special tax is paid may not be disposed of without
prior notice to the competent Customs Office and payment of the special tax.
i
184
A motor vehicle is not considered to be illegally used in the territory of the Republic
of Croatia if:
1. a natural person with permanent residence in another EU Member State uses
on the territory of the Republic of Croatia the motor vehicle registered in another Member State of the EU in the period, continuous or not, of a maximum six months for each period of 12 months,
2. a natural person regularly uses the motor vehicle registered in another EU
Member State where they have permanent residence for the journey from the
place of residence to the place of employment in the territory of the Republic
of Croatia, and vice versa (commuter). In this case, there is no time limit for
the use of a motor vehicle,
3. student uses the motor vehicle registered in another Member State where
they have permanent residence on the territory of the Republic of Croatia
where they reside exclusively for education purposes.
In the cases referred to in Item 1 the motor vehicle in the territory of the Republic of
Croatia must not be used for the transportation of passengers with payment or material compensation of any kind, or for the industrial and/or commercial transportation
of goods with payment or free of charge, nor can the motor vehicle be disposed,
leased or lent, and it must not be used by another person other than the one that
imported it, and in which cases it is considered that the motor vehicle was illegally
used in the territory of the Republic of Croatia.
i Any motor vehicles owned by the company for vehicle rental which has a registered
seat in another EU Member State which can be in the Republic of Croatia due to the
termination of the rental agreement leased again to persons who do not have permanent residence in the Republic of Croatia for the purpose of their removal from the
territory of the Republic of Croatia. Motor vehicles can be returned to the Member
State in which they were originally leased also by employees of the rental company
that can be persons with permanent residence in the Republic of Croatia. Every rental or use of the vehicle contrary to these provisions is considered illegal use of vehicles
on the territory of the Republic of Croatia.
i
The motor vehicle is not considered to be used illegally in the territory of the Republic of Croatia if it is a motor vehicle registered in another EU Member State:
1. in the possession of or in use by natural persons with permanent residence in
the Republic of Croatia who are employed by the employer in another EU
Member State and the vehicle is owned by the employer,
i
Any natural person with permanent residence in the Republic of Croatia is obliged in
this case to present to the Customs Office a written statement of the motor vehicle
owner and other evidence that unambiguously show that the motor vehicle is primarily intended for the performance of the employee’s work outside the territory of the
185
2. in possession of or use by natural persons with permanent residence in the
Republic of Croatia, which:
a) have a registered trade or profession in another EU Member State, and the
motor vehicle is registered in the name of the holder of the trade or profession;
b) is the responsible person, partner, shareholder or member of a commercial
company or company registered in another EU Member State, and the motor vehicle is owned by this foreign legal entity,
In the cases referred to in Items 1 and 2 the primary purpose of the motor vehicle
must be performing activities or use outside the area of the Republic of Croatia.
i In cases in Items 1 and 2 a natural person with permanent residence in the Republic
of Croatia is obliged to not later than 5 days from the date of first introduction of the
motor vehicle to the territory of the Republic of Croatia submit the request to the
Customs Office according to the place of their permanent residence for the purpose
of granting authorization which defines the conditions under which a person may
operate a motor vehicle on the territory of the Republic of Croatia. Exceeding this
period is considered to illegal use of the motor vehicle on the territory of the Republic
of Croatia.
i
3. in possession of natural persons with permanent residence in the Republic of
Croatia which rented, leased or lent the motor vehicle in another EU Member
State for the purpose of short-term use in the Republic of Croatia.
In such cases, the motor vehicle can be used on the territory of the Republic of Croatia for maximum of 15 days from the date of submission to the competent Customs
Office, in which period the motor vehicle shall be operated only by the person who
has lent or rented it. The person who has lent, leased or rented the motor vehicle is
required to report to the Customs Office within 3 days from the day of entry to the
territory of the Republic of Croatia. A natural person with permanent residence in the
Republic of Croatia, who rented, leased or lent the motor vehicle in another EU Member State, shall not use the same motor vehicle on the roads in the Republic of Croatia within a year from the date of the previous report submission. Failure to report a
motor vehicle to the Customs Office within the time limit, the use of a motor vehicle
after the expiration of the prescribed time limit or the use of the reported motor vehicle on the roads in the Republic of Croatia within a year from the date of the previous report submission is considered to be illegal use of a motor vehicle on the territory of the Republic of Croatia.
i If it is established that a different person, other than the one to whom authorization
was issued or who rented, leased or lent a motor vehicle in another EU Member State
has owned or used the motor vehicle, such possession or use shall be deemed illegal
use of a motor vehicle on the territory of the Republic of Croatia.
i
Exemption from tax payment for the diplomatic and consular offices, institutions and bodies of the European Union and international organizations
(see Chapter 1.3 Value added tax, section Exemptions)
186
SUBJECT OF TAXATION
The motor vehicles on which a special tax in the Republic of Croatia was not calculated and paid, and which are registered in accordance with special regulations,
namely:
1. personal vehicles and other motor vehicles principally designed for the
transportation of persons, including motor vehicles of the type station
wagon, van and race cars from the tariff codes CN 8703 21, 8703 22,
8703 23, 8703 24, 8703 31, 8703 32, 8703 33 and 8703 90, except ambulance vehicles, delivery van vehicles and vehicles specially adapted
for the transport of disabled persons,
Delivery »van« vehicles are motor vehicles derived from passenger-car bodywork with
a maximum of one row of seats or motor vehicles derived from the van vehicles
bodywork with a maximum of two rows of seats that are registered as commercial
vehicles with the competent authorities.
i Van vehicles are deemed to be motor vehicles that meet the following requirements:
minimum length of 4390 mm, minimum width of 1790 mm, minimum height of 1800
mm, minimum length of the cargo space of 1020 mm, minimum technical permissible
rear axle weight of 1230 kg, sliding side doors for access to the rear bench in factory
performance, permanently built-in compartment between the space for passengers
and space for the transport of goods and cargo homologation issued by motor vehicle
manufacturers.
i The manufacturer, representative office or the trader who is general representative or
importer of certain brands of motor vehicles is obliged to, before placing on the market
van vehicles of a specific brand, type, variant and trade name, to submit to the Customs
Office, the Central Office proof of meeting the prescribed conditions. A motor vehicle
shall not be delivered to the persons who are acquiring them for the purpose of use on
the roads in the Republic of Croatia without calculated and indicated special tax before the Customs Office notification that the motor vehicle meets the prescribed
conditions according to which it can be considered a van vehicle.
i
2. motorcycles (including mopeds), bicycles, and similar vehicles with auxiliary engines, with or without a sidecar within the tariff codes CN:
8711 20, 8711 30, 8711 40, 8711 50 and 8711 90,
3. pick-up vehicles with a double cabin, regardless of their classification in the
combined nomenclature,
4. ATV vehicles, regardless of their classification in the combined nomenclature,
5. other motor vehicles converted into motor vehicles from Items 1, 2, 3,
and 4
i
Motor vehicles that are exclusively operated on an electric drive are not subject to
taxation.
187
TAXABLE BASE AND SPECIAL TAX AMOUNT
The tax basis for new motor vehicles is the recommended selling price set by the
manufacturer, the representative office of the manufacturer in the Republic of Croatia and the trader who is general representative or importer of certain brands of
motor vehicles in the Republic of Croatia, or similar, submitted electronically to the
Customs Office, Central Office e-mail address motorna.vozila@carina.hr, while
for second-hand motor vehicles the tax basis is the value of the used motor vehicle
in the Croatian market on the day of the tax basis was determined.
A special tax on the following motor vehicles is paid in the percentage of the tax
basis based on the price of motor vehicles according to table 1 and the percentage
of the tax basis based on the price of motor vehicles depending on the average emission of carbon dioxide (CO2) expressed in grams per kilometer according to table 2
and 3, depending on the type of fuel that the vehicle uses for transport, and in such
a way that the resulting amounts are summed up:
1. personal vehicles and other motor vehicles principally designed for the transportation of persons, including motor vehicles of the type station wagon, van and
race cars from the tariff codes CN 8703 21, 8703 22, 8703 23, 8703 24, 8703
31, 8703 32, 8703 33 and 8703 90, except ambulance vehicles, delivery van vehicles and vehicles specially adapted for the transport of disabled persons,
3. other motor vehicles converted into motor vehicles from Items 1 and 2
TABLE 1 – motor vehicle price
Table 2 – diesel fuel
Table 3 – petrol, liquefied petroleum gas, natural gas and diesel fuel
with gas emission level EURO VI
Taxable base in HRK
%
CO2 emissions
(g/km)
%
CO2 emissions
(g/km)
%
0.00 to 100,000.00
100,000.01 to 150,000.00
150,000.01 to 200,000.00
200,000.01 to 250,000.00
250,000.01 to 300,000.00
300,000.01 to 350,000.00
350,000.01 to 400,000.00
400,000.01 to 450,000.00
450,000.01 to 500,000.00
Over 500,000.00
1
2
4
6
7
8
9
11
12
14
86 to 100
101 to 110
111 to 120
121 to 130
131 to 140
141 to 160
161 to 180
181 to 200
201 to 225
226 to 250
251 to 300
301 to
1.5
2.5
3.5
7
11.5
16
18
20
23
27
29
31
91 to 100
101 to 110
111 to 120
121 to 130
131 to 140
141 to 160
161 to 180
181 to 200
201 to 225
226 to 250
251 to 300
301 to
1
2
3
6
10
14
16
18
21
23
27
29
i
Special tax on the basis of the emission of carbon dioxide (CO2) is not paid on motor
vehicles which use diesel fuel and whose average emissions of carbon dioxide (CO2) is
up to a maximum of 85 grams per kilometer and motor vehicles which use gasoline,
liquefied petroleum gas or natural gas and whose average emission of carbon dioxide
(CO2) is up to a maximum of 90 grams per kilometer.
188
For plug-in hybrid electric vehicles, the amount of special tax is decreased by a percentage amount that corresponds to the range of the vehicle in fully electric mode of work.
i FFor camper vehicles, the special tax amount is decreased by 85%.
i
If in accordance with special regulations, the motor vehicle which is the subject
of taxation does not require vehicle homologation procedure the applicant of
the tax report can request a certificate from an authorized legal person on the
average carbon dioxide (CO2) emission expressed in grams per kilometer. If the
applicant is unable to submit evidence on the average carbon dioxide (CO2)
emission, it shall be assumed that the average emission for vehicles using diesel
fuel, gasoline, liquefied petroleum gas and natural gas is 301 g/km.
A special tax on the following motor vehicles is paid in the percentage of the tax
basis based on the price of motor vehicles depending on the volume of the engine
in cubic centimeters according to table 4 and the percentage of the tax basis based
on the levels of emission according to table 5, in such a way that the resulting
amounts are summed up:
1. motorcycles (including mopeds), bicycles, and similar vehicles with auxiliary
engines, with or without a sidecar within the tariff codes CN: 8711 20, 8711
30, 8711 40, 8711 50 and 8711 90,
3. other motor vehicles converted into motor vehicles from Items 1 and 2
Table 4 – The engine volume of in
cubic centimeters (cm3)
51 to 125
126 to 250
251 to 400
401 to 600
601 to 800
801 to 1000
1001 to
%
2.5
3
3.5
4
4.5
5
5.5
TABLE 5 – Gas
emission levels
Euro III
Euro II
Euro I
%
5
10
15
THE EMERGENCE OF TAX LIABILITY AND THE PAYMENT OF THE SPECIAL TAX
I) The obligation of special tax calculation and payment occurs:
1. when the manufacturer or trader issue a sales invoice for a motor
vehicle to a person who is not a trader, unless the trader acquires
such a vehicle for their own use,
i
The manufacturer is a legal and natural person who produces or for his or her own
account orders the production of motor vehicles on the territory of the Republic of
Croatia.
189
i
A trader is any person registered for performing the activity of motor vehicle sales in the
Republic of Croatia who for the purpose of further sales imports new motor vehicles or
acquires them from the manufacturer, other traders or importers in the Republic of
Croatia, or who introduces new motor vehicles from another EU Member States.
2. when a used motor vehicles trader issues a sales invoice for a motor
vehicle to a person who is not a trader or used motor vehicles trader,
except if the trader or used motor vehicles trader purchase such a
vehicle for their own use,
i
Used motor vehicles trader is every person registered for performing activity of motor
vehicle sales in the Republic of Croatia who for further sale imports or introduces
used motor vehicles in the Republic of Croatia or acquires such motor vehicles in the
3. when the legal or natural person with registered seat or permanent
residence in the Republic of Croatia, who is not a trader or a used motor vehicles trader, introduces or imports motor vehicle to the territory of the Republic of Croatia, or when a trader, used motor vehicles
trader, introduces or imports motor vehicles for their own use.
The liability of calculation and payment of the special tax is not incurred when
the manufacturer, trader or used motor vehicles trader sells the motor vehicle
to a person with registered seat or permanent residence outside the area of
the Republic of Croatia for use on the roads outside of the Republic of Croatia
or when a motor vehicle is sold to a person or institution that is exempt from
special tax payment.
II) The liability of calculation and payment of the special tax on other
motor vehicles converted into motor vehicles that are the subject of
taxation as generated by their conversion.
III) The liability of calculation and payment of the special tax arises
when it is determined that the motor vehicles were illegally used in
the territory of the Republic of Croatia. In such cases, the liability of
calculation and payment of the special tax arises:
1. when the manufacturer, trader or used motor vehicles trader delivers to another person a motor vehicle on which special tax was not properly calculated
or paid in the Republic of Croatia prior to invoice issuance or without invoice
issuance or when such motor vehicle is used for their own purposes,
2. when it is determined that natural person with permanent residence in the
Republic of Croatia owned a motor vehicle on which special tax was not properly calculated or paid in the Republic of Croatia, or such a motor vehicle was
used on the road in the Republic of Croatia.
190
i
A natural person has permanent residence in the Republic of Croatia if they are really
residing for more than 185 days in each calendar year due to personal and business
relationships, or in cases when there is no business relationship, if there are personal
relationships which point to a close ties between the person and the places where
they resides on the territory of the Republic of Croatia.
A natural person who is connected by business to a location other than the
one to which they are personally bound and who, therefore, resides on the
territory of the Republic of Croatia and the territory of another EU Member
State has permanent residence in the country to whose territory they are personally bound, with the condition that they regularly go there. The condition
of regular visits does not have to be fulfilled if a natural person resides on the
territory of the Republic of Croatia, i.e. certain EU Member States, in order to
perform work of a specific duration. A natural person residing in another
Member State of the EU which regularly attends school on the territory of the
Republic of Croatia is not considered to be a person who permanent residence on the territory of the Republic of Croatia.
THE MANNER OF CALCULATION AND PAYMENT OF SPECIAL TAX
1. Manufacturer and trader shall, in the name and for the account of the motor
vehicle acquirer, calculate the special tax before invoice issuance and pay the
calculated amount no later than the 15th day of the current month for the preceding calendar month.
i
The invoice issued by the manufacturer and trader must contain the indication that
the special tax was calculated in accordance with the provisions of the Act on Special
Tax on Motor Vehicles.
2. Legal or natural person with registered seat or permanent residence in
the Republic of Croatia, who is not a trader or a used motor vehicles
trader, and who is buying a vehicle from used motor vehicles trader,
shall submit to the competent Customs Office according to its registered seat or
permanent residence a tax report within 5 days from the date the vehicle was
purchased from the used motor vehicles trader.
3. Legal or natural person with registered seat or permanent residence in
the Republic of Croatia, who is not a trader or a used motor vehicles
trader, and who introduces or imports motor vehicles on the territory of
the Republic of Croatia shall submit to the competent Customs Office according to its registered seat or permanent residence a tax report within 15 days from
the date the vehicle was introduced or imported on the territory of the Republic
of Croatia.
191
i
The taxpayer can even before the acquisition of a motor vehicle authorize by a Power
of attorney the used motor vehicles trader to submit in their name and for their account a tax report to the competent Customs Office according to the trader’s registered seat or permanent residence.
4. The person who has repurposed another motor vehicle shall submit to the
competent Customs Office according to their registered seat or permanent residence a tax report within 15 days from the date of the conversion of the motor
vehicle.
If a taxpayer has not appealed to the Customs Office record, they shall determine
the tax liability by bringing a resolution without delay.
The taxpayer shall pay the special tax within 15 days from the date the resolution’s execution.
When due to justifiable reasons the tax report cannot be submitted to the Customs
Office according to the taxpayer’s registered seat or permanent residence, the tax
report can be submitted to any Customs Office. Failure to report a motor vehicle to
the competent Customs Office in the mentioned period is considered to be an illegal use of the motor vehicle on the territory of the Republic of Croatia.
At the occurrence of the tax liability in cases of illegal use of the motor vehicle,
the special tax is determined ex officio and calculated by the competent Customs
Office with a resolution. The appeal of the resolution does not postpone its execution. Without evidence of the calculated, or paid special tax, motor vehicle
registration cannot be done at the competent authority.
SPECIAL TAX RETURN
The owner of the motor vehicle on which special tax was paid who exports or removes from the Republic of Croatia the motor vehicle which is removed from the
register of registered motor vehicles of the competent authority has the right to a
refund of the part of the paid special tax which is determined at the level of the rest
of the special tax amount on the day of reporting the motor vehicle for export or
removal to the competent Customs Office according to their registered seat or permanent residence. The owner of the motor vehicle is required submit to the competent Customs Office a report on the export or removal of the motor vehicle at the
earliest 14 days before the export or removal of the motor vehicle will be done. After
removing or exporting motor vehicles from the Republic of Croatia, the request for a
special tax refund shall be submitted to the competent Customs Office according to
the registered seat or permanent residence of the motor vehicle owner via the prescribed form and with the prescribed attachments.
i
The special tax refund will not be granted if the removal from the records of registered motor vehicles, and the removal or export of a motor vehicle for which the refund was requested is not completed no later than within 14 days from the date of
submission of the request, unless there are particularly justified reasons.
192
i
Exceptionally, if the motor vehicle owner has not submitted a report on the export or
the removal of the motor vehicle, they can exercise the right to a special tax refund
for the motor vehicle on the basis of request for a special tax refund, whereby in this
case, the amount of the special tax refund is determined as a percentage of the
amount of special tax paid according to table 2 of the Ordinance on Special Tax on
Motor Vehicles, depending on the period during which the motor vehicle was in use
or registered in the Republic of Croatia.
Special tax refund will not be granted for the motor vehicles for which special
tax calculated and paid for illegal use on the territory of the Republic of Croatia.
RECORDS
The manufacturer, the trader and the used motor vehicles trader shall keep the records on the brand of motor vehicle, the type and model of motor vehicle, identification number (chassis number), the engine label, the working procedure, the engine
volume in cubic centimeters (cm3), fuel type, number of doors, the number of seats,
exhaust gas emission level, the engine power in kW, the carbon dioxide (CO2) emission, the information if it is fully electric or hybrid (electric) vehicle, on te range of
electric and plug-in hybrid electric vehicles in the fully electric mode of operation, the
certificate number of conformity of individually examined vehicle, the acquisition of
the motor vehicle, the country of delivery, the date of delivery, the quantity produced, imported, introduced, shipped and sold motor vehicles, the earlier registrations numbers of used motor vehicles, inventory status, values, the tax basis, the tax
rate and the amount of calculated special tax.
i
Entries into the record are done on a daily basis, but not later than the next business
day since the business event occurred.
Name of the form
(to the competent customs
house)
Tax report for calculation and payment of special tax on motor vehicles (Form 1)
legal or natural person with registered
seat or residence address in the Republic
of Croatia, who is not a trader or a used
motor vehicles trader and who introduces
or imports a motor vehicle on the territory
of the Republic of Croatia
legal or natural person with registered
seat or residence address in the Republic
of Croatia, who is not a trader or a used
motor vehicles trader and who purchases
a motor vehicle in the Republic of Croatia
a person who has converted other motor
vehicle in a motor vehicle that is subject
to taxation
15 days from the date of
entry or import of the motor vehicle
5 days from the date of
vehicle purchase
15 days from the conversion of the motor vehicle
193
Name of the form
Motor vehicle report
with the purpose of use
in the Republic of Croatia for the period longer
than 15 days
(Form 2)
Report of the motor vehicle for the purpose of
short-term use in the
Republic of Croatia
(Form 3)
Request for issuance/renewal of the authorization for exemption from
special tax payment for
motor vehicles in the Republic of Croatia (Form
4)
natural or legal person with registered 3 days from the day of enseat or residence address in the Republic try to the territory of the
of Croatia, who rents, leases or lends a Republic of Croatia
motor vehicle registered in another EU
Member State
A natural person with permanent residence in the Republic of Croatia who rented,
leased or lent the motor vehicle in another
EU Member State for the purpose of
short-term use in the Republic of Croatia
1. a natural person with permanent residence in the Republic of Croatia who is
employed by an employer in another
EU Member State
2. a natural person with permanent residence in the Republic of Croatia:
a) who has a registered trade or profession in another EU Member State,
and the motor vehicle is registered in
the name of the holder of the trade
or profession;
b) is the responsible person, partner,
shareholder or member of a
commercial company or company
registered in another EU Member
State
Report on the export or the owner of the motor vehicle on which
the removal of a motor the special tax is paid
vehicle (Form 5)
Request for special tax
refund for motor vehicles (Form 6)
Report for registration in the manufacturer, the trader and the used
the register of manu- motor vehicles trader
facturers and motor vehicle traders (Form 7)
Bank guarantee for the manufacturer and motor vehicles trader
payment of the special
tax on motor vehicles
(Form 8)
Monthly report on cal- manufacturer and motor vehicles trader
culated amounts of special tax on new motor
vehicles from ____ to
____ of the year 20__
(Form 9)
194
house)
3 days from the day of entry to the territory of the
Republic of Croatia
• The request for the authorization issuance – 5
days from the day the
motor vehicle was first
introduced to the territory of the Republic of
Croatia
• A request for a renewal
of the authorization –
no earlier than 15 days
before the authorization
expiry
earliest 14 days before the
removal or export will be
done
after the performed removal or export of motor vehicle
8 days before the start of
the performance of activities of production or sale
of motor vehicles on the
territory of the Republic of
Croatia
with the application for
the registration in the register
until the 15th day of the
month for the preceding
month
Name of the form
house)
IOMV – Direct exempti- diplomatic and consular offices, internation for motor vehicles
onal organizations, and institutions and
bodies of the EU based in the Republic of
Croatia
directly upon import or introduction of a motor vehicle or the purchase of a
motor vehicle from a legal
or natural person in the
Republic of Croatia (certificate verified by the Ministry of Foreign and European Affairs)
PAYMENT ACCOUNT
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195
1.4.2.2 Second-hand motor vehicles (motor vehicles
on which the special tax is calculated and
paid in the Republic of Croatia and that are
registered in the Republic of Croatia)
i
A second-hand motor vehicle is any motor vehicle other than a new motor vehicle. A
new motor vehicle is a motor vehicle that at the time of entry, import or sale in the
Republic of Croatia was not registered.
On second-hand motor vehicles, a special tax on acquisition of motor vehicle in the Republic of Croatia is calculated and paid.
SUBJECT OF TAXATION
Motor vehicles on which the special tax is calculated and paid in the Republic of
Croatia and that are registered in the Republic of Croatia:
1. personal vehicles and other motor vehicles principally designed for the
transport of persons, including motor vehicles of the type station wagon, van and race cars from the tariff codes KN 8703 21, 8703 22, 8703
23, 8703 24, 8703 31, 8703 32, 8703 33 and 8703 90, except ambulance
vehicles, delivery »van« vehicles and vehicles specially adapted for the
transport of disabled persons,
Delivery »van« vehicles are motor vehicles derived from passenger-car bodywork with
a maximum of one row of seats or motor vehicles derived from the van vehicles
bodywork with a maximum of two rows of seats that are registered as commercial
vehicles with the competent authorities.
i Van vehicles are deemed to be motor vehicles that meet the following requirements:
minimum length of 4390 mm, minimum width of 1790 mm, minimum height of
1800 mm, minimum length of the cargo space of 1020 mm, minimum technical
permissible rear axle weight of 1230 kg, sliding side doors for access to the rear
bench in factory performance, permanently built-in compartment between the space
for passengers and space for the transport of goods and cargo homologation issued
by motor vehicle manufacturers.
i
2. motorcycles (including mopeds), bicycles, and similar vehicles with auxiliary engine, with or without sidecar within the tariff codes KN: 8711
20, 8711 30, 8711 40, 8711 50 and 8711 90,
5. other motor vehicles converted into motor vehicles from Items 1, 2, 3
and 4
i
Motor vehicles that exclusively run on electric drive are not subject to taxation, as well
as commercial motor vehicles, work vehicles and working machines.
196
Taxpayer
Taxable base
Tax rate
The acquirer of the used motor
vehicle to which a special tax on
motor vehicles was paid in the Republic of Croatia (if such acquisition, i.e. delivery, is not subject to
VAT taxation or tax on inheritance
and gifts)
The market value of a used
motor vehicle at the moment
of occurrence of the tax liability (the value of a used motor vehicle in the Croatian
market on the date of the
determination of the taxable
base of the special tax)
5%
15 days from the
day of appointment
(15 days from the
day when the used
motor vehicle was
acquired)
Buyer of a used motor vehicle
from a middleman who applies a
special procedure of taxation for
the margin for used goods
The market value is determined based on a document on the acquisition, or assessment, if the Tax Administration determines that the taxable base is not realistically
expressed. The tax administration checks the market price expressed in the documents about the acquisition, and if it determines that the same is not realistically
expressed, it determines the price by comparison and evaluation on the basis of the
available data on the prices of used motor vehicles on the Croatian market (catalogues, price lists of retailers, etc.).
i The tax liability of the special tax on the acquisition arises at the moment of acquisition. The taxpayer must report such occurrence of tax obligations to the competent
tax authority according to his/her headquarters or place of residence within 15 days
from the date of acquisition of a used motor vehicle.
i
Without evidence about special tax paid on the acquisition of a used motor
vehicle, the registration of such motor vehicle cannot be performed at the
competent authority.
EXEMPTION FROM PAYMENT OF THE SPECIAL TAX ON THE ACQUISITION OF USED MOTOR VEHICLES
Special tax on the acquisition of used motor vehicles is not paid by the gift recipient
who is in a relation to the donor in the first line of succession and a successor who
is in a relation to the testator in the first line of succession (testator’s progeny and
spouse). Special tax on the acquisition of a used motor vehicle is not paid on the
acquisition of used motor vehicles that are meant for the purposes prescribed in
Paragraph 1.4.2.1 (see section EXEMPTIONS FROM PAYMENT OF SPECIAL TAX)
The taxpayer is required to pay a special tax on the acquisition of a second-hand motor vehicle within 15 days from the date of occurrence of the tax liability, that is, 15
days from the moment of acquisition.
197
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TAX REGULATIONS
Act on Special Tax on Motor Vehicles (Official Gazette No. 15/13, 108/13),
26/15, 44/16),
Ordinance on Special Tax on Motor Vehicles (Official Gazette No. 52/13, 90/13,
140/13, 116/14, 152/14, 31/15),
Ordinance on Filing Excise Forms and Special Tax Forms Using the Electronic Data
Interchange System (Official Gazette No. 144/14),
1.4.3 SPECIAL TAX ON COFFEE AND
NON-ALCOHOLIC BEVERAGES
TAXABLE PERSONS
1. authorized holder of tax warehouses
Authorized holder of the tax warehouse is a person who, based on the tax approval
in the tax warehouse receives, produces, processes, stores, ships and performs other
actions with the subjects of taxation in the suspension system.
i Suspension system of payment of special tax (hereinafter: suspension system) is a tax
system that is applied to receipt, production, processing, storage, shipping and peri
198
forming of other actions with subjects of taxation in which the payment obligation of
the special tax is suspended.
2. Manufacturer and vendor outside the suspension system,
The manufacturer is a legal and natural person who produces or for personal
account, orders the production of subjects of taxation on the territory of the
Republic of Croatia. The manufacturer can be an authorized holder of the tax
warehouse.
A vendor is any person registered for performing the activity of selling items
of taxation on the territory of the Republic of Croatia, who imports, carries in
or receives such items for further resale in the Republic of Croatia. A vendor
may be an authorized holder of tax warehouses.
3. Recipient,
i
Recipient is any person who solely for his or her own use imports or receives the objects of taxation without further sale.
4. The person found to be illegally handling a subject of taxation in the
i
Person who has illegally treated a subject of taxation in the Republic of Croatia is
deemed to be a person who has participated in illegal such illegal actions on the territory of the Republic of Croatia, and the same knew or must have known that such actions were illegal, and person who acquired subjects of taxation in ownership, even
though at the time of acquisition or receipt the same knew or must have known about
illegal treatment with the subject of taxation on the territory of the republic of Croatia.
The manufacturer, vendor and authorized holder of a tax warehouse are required to
submit an application for the registration in the registry of special taxpayers to the
competent Customs Office according to the location of their headquarters or place
of residence no later than 8 days before the beginning of production or sale activities. In the same period, they are required to notify any amendments to the data and
cessation of activities.
Authorized holder of the tax warehouse, manufacturer and vendor out of the suspension system are required to calculate and pay the special tax in accordance with
the applicable tax rates and amounts that are in effect on the date of occurrence of
the obligations of the special tax calculation, except if tax liability arises in cases of
illegal conduct. The period of taxation for payment of special tax is a calendar month,
and the taxpayer is obliged to calculate and pay the special tax up to the last day of
the current month for the preceding calendar month.
When importing a subject of taxation, the special tax is calculated and charged by
the Customs Office that performs customs procedure together with the statement
and collection of customs debt according to the regulations on the calculation and
collection of customs debt, unless the payment of the special tax is suspended.
199
The recipient is required to submit a tax return to the Customs office according to
the location of their headquarters or place of residence in which the special tax shall
be calculated within 5 days from the date of receipt or import of subjects of taxation,
and the special tax is determined and calculated by the responsible customs office by
a resolution.
If the tax audit determines that the person holds subjects of taxation which
are entered or received in the Republic of Croatia, and for which a tax return
was not filed, it is deemed that such subjects of taxation were imported or
received before the deadline of 5 days for the submission of tax return, unless
the person by which such subjects were found does not prove otherwise.
i
At the occurrence of tax liability in cases of illegal conduct, special tax is determined
ex officio and calculated by the competent Customs Office with a resolution.
EXEMPTIONS
Special tax is not paid on subjects of taxation if they are intended for:
1. official needs of diplomatic and consular offices and special missions accredited in the Republic of Croatia, on condition of reciprocity, with the exception
of consular offices lead by honorary consular officers,
3. needs of international organizations, when stipulated in international agreements applying to the Republic of Croatia,
3. personal needs of international organizations’ staff, if so stipulated in international agreements applying to Croatia,
5. use in accordance with an international agreement concluded between Croatia
and another state or an international organization, if such an agreement provides
for an exemption from VAT tax in the case of supply of subjects of taxation,
6. official purposes of the EU institutions in the Republic of Croatia,
7. personal use of international staff of EU institutions in the Republic of Croatia.
i
The exemption from special tax referred to in Items 1, 2, 6 and 7 of shall be granted
based on certification by the ministry competent for foreign affairs, and the exemptions
referred to in Items 3, 4 and 5 based on certification of the competent state authority
responsible for the implementation of the particular international agreement.
If, under an international agreement, the exemption can be granted only on
condition of reciprocity, the ministry competent for foreign affairs shall confirm that the condition of reciprocity is satisfied.
i
The exemptions from payment of special tax referred to in Items 2, 4 and 7 may not
be granted to the citizens of the Republic of Croatia or foreign nationals having with
permanent residence in the Republic of Croatia.
200
i
The subjects of taxation on which no special tax is payable may only be disposed of
subject to previous notification to the competent customs house and payment of
special tax.
Special tax is not paid on subjects of taxation that a natural person produces and
carries in or imports in the personal luggage in amounts considered that are not intended for commercial use.
Authorized holder of a tax warehouse is exempted from payment of the special tax
on following subjects of taxation:
1. which are used as samples in the analyses for trial production, or for scientific
purposes;
2. which are used for quality control,
3. which are used for the purpose of tax monitoring,
4. which have been destroyed under customs supervision,
5. identified losses or shortages of subjects of taxation in the tax warehouse or
at the time of movement of the subjects of taxation in the suspension system.
Manufacturer and vendor are exempted from payment of the special tax on subjects
of taxation in the cases referred to in Items 1, 2, 3 and 4. Special tax is not paid on
subjects of taxation:
1. which are sold on ships and airplanes during a sail or flight to third countries
and third territories or other Member States of the EU,
2. which are supplied from an excise warehouse to the facilities of tax warehouses located at airports or harbors opened to international traffic for the
purpose of being sold to passengers travelling to another state upon presentation of a boarding pass.
SUBJECT OF TAXATION, TAXABLE BASE AND TAX AMOUNT
No.
1
2
3
4
5
Subject of taxation
Coffee and non-alcoholic beverages
that are placed on the market in the Republic of Croatia
roasted coffee from the tariff codes KN 0901
21 and KN 0901 22
extracts, essences and concentrates of coffee
from the tariff code KN 2101 11
preparations based on extracts, essences or
concentrates or based on coffee from the
tariff code KN 2101 12
coffee substitutes containing coffee from
the tariff code KN 0901 90 90
beverages and non-alcoholic beverages containing coffee, extracts, essences and concentrates of coffee from the tariff code KN
2202
Taxable base
Tax amount
1 kg net mass
of coffee
1 kg net mass
of coffee
HRK 6.00/kg
HRK 20.00/kg
roasted coffee HRK 6.00/kg
contained in
final product
1 kg net mass product
of coffee
contained in extracts,
HRK 20.00/
final
essences and kg
concentrates
of coffee that
is contained
in the final
product
201
No.
Subject of taxation
6
waters, including mineral waters and carbonated waters, containing added sugar or
other sweetening matters or flavors, and
other non-alcoholic beverages from the tariff code KN 2202 except fruit juices, fruit
nectars, non-alcoholic beverages obtained
from products from tariff codes KN 0401 to
0404 and non-alcoholic beverages that contain coffee, extracts, essences and concentrates of coffee
other beverages with alcohol content not
exceeding 1.2% from tariff codes KN 2204,
2205, 2206 and 2208, except drinks that are
a mixture of beer and non-alcoholic beverages from the tariff code KN 2206 with
actual alcohol volume content of more than
0.5% vol
syrups and concentrates intended for the
preparation of non-alcoholic beverages regardless of their classification in the combined nomenclature, other than concentrates
from the tariff code KN 2009 and fruit syrups
powders and granules intended for the preparation of non-alcoholic beverages regardless of their classification in the combined
nomenclature
7
8
9
Taxable base
Tax amount
1 hectoliter
of non-alcoholic
beverage
HRK 40.00/hl
1 hectoliter
of non-alcoholic
beverage
HRK 40.00/hl
1 hectoliter
of non-alcoholic
beverage
HRK 240.00/hl
100 kg net
mass of
powders and
granules
HRK 400.00/100 kg net
INCURRENCE OF TAX LIABILITY
Liability to calculate and to pay the special tax is created by placement of the subject
of taxation on the market in the Republic:
1. at the time of release of the subject of taxation from the suspension system,
2. at the time of production of the subject of taxation from the suspension system,
3. at the time of the import, entry, or receipt of the subject of taxation in the
Republic of Croatia outside the suspension system,
i
Market placement in the Republic of Croatia is deemed to be:
– the release of subjects of taxation from the special tax payment suspension system,
– the production of subjects of taxation from the special tax payment suspension system,
– the import, entry or receipt of the subject of taxation, unless such subjects of taxation are not put in the suspension system of special tax payment immediately after
their import, entry or receipt.
The entry of a subject of taxation is every import in the Republic of Croatia
from the territory of a Member State of the EU, as prescribed by EU legislation, except from third territories.
i
The import of subjects of taxation is deemed to be any import in the EU from third
countries, or third territories, unless otherwise prescribed by this Act.
202
4. when a shortage or loss of subjects of taxation in the tax warehouse is determined or at the time of movement of subjects of taxation in the suspension
system, other than loss or shortage for which the taxable person proves to the
competent Customs Office that can be attributed to vis major or reasons
which cannot be attributed to his guilt,
5. on the day of expiry of the authorization issued by the competent Customs
Office for the business in the suspension system.
6. when illegal treatment with subjects of taxation is determined.
i
The obligation of calculation and payment of special tax incurs if subjects of taxation
are received, stored or produced in a tax warehouse.
The obligation of calculation and payment of special tax for the producer and
vendor outside the suspension system does not incur if subjects of taxation
are exported form the Republic of Croatia within the taxable period.
RECORDS
The manufacturer, vendor and authorized holder of tax warehouse are required to
keep in their records information about the procurement of subjects of taxation,
place and country of procurement or delivery, date of procurement or delivery, the
quantity of produced, imported, exported, dispatched, shipped and sold objects of
taxation, the state of inventory and raw materials, value, taxable base, tax rate and
the amount of the calculated special tax, while the authorized holder of a tax warehouse shall also keep records of received and dispatched quantities of subject of
taxation in the suspension system.
Name of the form
Who is liable to submit the
form
PUR – Application for entry into the Manufacturer, vendor
register of special tax payers (Regula- and authorized holder
tion on Excise Duties – Appendix 1) may be an authorized
holder of tax warehouses.
MI-K – Monthly report on the state of Manufacturer, vendor
inventory, produced, imported, deli- and authorized holder
vered and sold quantities and calcu- may be an authorized
lated special tax on coffee for the holder of coffee wareperiod from ____ to ____ (Ordinance house
on excise duties – Appendix 2 – suspension system, Ordinance on excise
duties – Appendix 2a – Outside the
suspension system)
Deadline for submission (to the
competent customs house)
carrying out activities of production or sale of subjects of
taxation
up to the last day of the current month for the preceding
calendar month
203
Name of the form
form
Manufacturer, vendor up to the last day of the cuand authorized holder rrent month for the preceding
may be an authorized calendar month
holder of non-alcoholic
beverages warehouse
MI-BAP – Monthly report on the state
of inventory, produced, imported,
delivered and sold quantities and calculated special tax on non-alcoholic
beverages for the period from ___ to
____ (Ordinance on excise duties –
Appendix 2 – suspension system, Ordinance on excise duties – Appendix
2a – Outside the suspension system)
OBR-PP-K/BAP – Request for a special
tax calculation (Ordinance on excise
duties – Appendix 3)
i
Deadline for submission (to the
competent customs house)
Recipient of coffee and 5 days from the receipt or imnon-alcoholic beverages port of subjects of taxation
For the period in which there was no production, import, entry, delivery, receipt, shipment or sale of subjects of taxation, there is no obligation for the submission of
monthly reports.
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Classification
Type of special tax
1082
Special tax on non-alcoholic beverages
1104
Special tax on coffee
Authorized holder of a tax warehouse, manufacturer and retailer
out of the suspension system, are required to pay a special tax up
to the last day of the current month for the preceding calendar
month. In the event of the expiration of the tax credit, the authorized holder of the tax warehouse is required to pay a special tax
within 30 days from the date of expiry of the authorization
204
When importing, the special tax is calculated and charged by the Customs Office
that performs customs procedure together with the statement and collection of
customs debt according to the regulations on the calculation and collection of customs debt, unless the payment of the special tax is suspended.
SPECIAL TAX RETURN
Entitled to a special tax return are:
person who during the performance of business activities exports subjects of
taxation from the Republic of Croatia to which the special tax was paid, has
the right to tax return in the amount of special tax paid for the subjects of
taxation in the Republic of Croatia
manufacturer who exports subjects of taxation from the Republic of Croatia
for the production of which the same spent subjects of taxation to which the
special tax was paid in the Republic of Croatia, has the right to tax return in
the amount of special tax spent for the production of the new product
manufacturer who produces excise duty or other products for the production
of which the same spent subjects of taxation to which the special tax was paid
in the Republic of Croatia, has the right to tax return in the amount of special
tax spent for the production of the new product
The taxpayer is entitled to a refund of the paid special tax for the subjects of taxation
that are based on the decisions of the competent bodies withdrawn from sale because of health defects.
TAX REGULATIONS
Act on Special Tax on Coffee and Non-alcoholic Beverages (Official Gazette No.
72/13),
26/15, 44/16),
Ordinance on Special Tax on Coffee and Non-alcoholic Beverages (Official Gazette
No. 90/13, 111/13),
Ordinance on Filing Excise Forms and Special Tax Forms Using the Electronic Data
Interchange System (Official Gazette No. 144/14),
205
1.4.4 TAX ON LIABILITY AND COMPREHENSIVE
ROAD VEHICLE INSURANCE PREMIUMS
TAXABLE PERSONS
The insurance companies that make contracts with legal entities and natural persons
and collect premiums for liability and comprehensive road vehicle insurance directly
or indirectly via an agent or representative.
SUBJECT OF TAXATION/TAXABLE BASE
Subject of taxation
Taxable base
1. Liability (third party claims) motor vehicle insurance premiums
2. Road vehicle comprehensive insurance premiums
Insurance premiums that an insurance company quotes a natural
person or legal entity while making a contract concerning the
obligatory insurance of road motor vehicles
The insurance premiums that an insurance company quotes a natural person or legal entity while making a contract concerning
the comprehensive insurance of road motor vehicles
TAX RATES
1. 15% of the contractual obligatory motor vehicle insurance premium
2. 10% of the contractual comprehensive motor vehicle insurance premium
EXEMPTIONS
The tax on obligatory road vehicle insurance (third party claims) diplomatic and consular missions do not pay premiums and the tax on comprehensive road vehicle insurance premiums.
Name of the form
Who is liable to
submit the form
E-PAO – Records of contracts about Insurance
obligatory insurance of road motor company
vehicles, the amount of obligatory insurance premiums, and the tax liability according to date due
E-PKO – Records about contracts of Insurance
road vehicle comprehensive insuran- company
ce, the amount of comprehensive insurance premiums, and the tax liability according to date due
IZ-PAOKO – Report about calculated Insurance
and paid tax on obligatory and com- company
prehensive road vehicle insurance premiums
206
(to the competent customs house)
 up to the 15th of the month for
the past month in the case of
monthly reporting
 up to January 31 of the current
year for the past year in the case
of annual reporting
monthly reporting
of annual reporting
monthly reporting
of annual reporting
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Classification
Type of special tax
1120
Tax on motor vehicle insurance premium
1139
Tax on comprehensive motor vehicle
insurance premium
30 days from the moment of conclusion of the
contract with a legal or natural person
TAX REGULATIONS
Act Concerning Tax on Obligatory and Comprehensive Road Vehicle Insurance
Premiums (Official Gazette No. 150/02),
26/15, 44/16),
Ordinance Concerning the Keeping of Records on Tax Paid on Obligatory and
Comprehensive Road Vehicle Insurance Premiums (Official Gazette No. 16/03),
207
2. COUNTY TAXES
2.1 INHERITANCE AND GIFTS TAX
TAXABLE PERSONS
Legal entity or natural person that inherits or receives the gift of or acquires on some
other basis in the Republic of Croatia without any compensation some assets on
which tax on inheritances and gifts is paid.
If the heir renounces the inheritance or cedes it in the probate proceedings, the person
the inheritance comes to or to whom it is ceded pays the in-heritance and gifts tax.
i The inheritance and gifts tax is not paid if VAT is paid on the inherited or gifted
movables.
i
INCURRENCE OF TAX LIABILITY
Incurrence of tax liability on inheritances and gifts:
1. at the time of effectiveness of the ruling of inheritance,
2. at the time of effectiveness of the decisions of the State authority or the
Court,
3. at the time of conclusion of the bestowment (signing of the contract by of the
bestower and bestowed), and
4. at the time of receipt of the gift, if the contract has not been concluded.
TAXABLE BASE
The amount of cash and the market value of financial and other assets on the day
the tax liability is determined, after the deduction of debts and costs that relate to
the assets on which the tax is being paid.
The inheritance and gifts tax is paid:
1. on cash, monetary claims and securities,
2. on movables if the individual market value is more than HRK 50,000.00 on the day
of the determination of the tax liability.
i Inheritance, donation, or acquisition of real estate is taxed according to the provisions
of the Real Estate Transfer Tax Law (see section 4.2).
i
TAX RATES
Up to 5% (prescribed by the county decisions).
EXEMPTIONS
The following persons are exempt from inheritance and gift tax:
1. the spouse, blood kin in the direct line, and the adopted children or adoptive
parents of the deceased or the donor
208
i
In accordance with the provisions of the Family Act and Same-Sex Life Partnership
Act, persons of the same sex extramarital unions and informal life partners have the
same rights regarding donations and inheritance27.
2. brothers and sisters, their progeny, sons-in-law and daughters-in-law of the
legator or donor if they lived together in a joint household with the legator at
the moment of the decease or with the donor at the moment of the receipt
of the gift. A common household is deemed to involve common acquisition
of income and assets and disposal of the income and assets that is inherited
or given,
3. natural persons and legal entities to whom the Republic of Croatia or a unit
of local and regional self-government gives movables without compensation
for the sake of payment of damages or some other reasons in connection
with the Homeland War,
4. the Republic of Croatia and units of local and regional self-government, bodies of the state administration and bodies of units of local and regional selfgovernment, public institutes, religious communities, foundations, the Red
Cross and other humanitarian and charitable associations founded pursuant
to separate regulations,
5. natural persons and legal entities that receive gifts (donations) for purposes
laid down in separate regulations.
i
Counties may prescribe by their decisions also other exemptions and deductions.
FORMS AND THE DEADLINES FOR THE SUBMISSION OF FORMS
Those liable to the inheritance and gifts tax must submit to the competent tax body
an inheritance ruling or a decision of the body of the national administration or a
court or a deed of gift, within a period of 30 days of the day of the legal effectiveness
of the ruling about inheritance or the decision of a body of the national administration or a court or from the day of the making of the deed of gift.
TERM OF PAYMENT AND PAYMENT ACCOUNT
The taxpayer is required to pay the amount of taxes within 15 days from the receipt
of the ruling setting the tax.
27
Extramarital union is a union of an unmarried woman and an unmarried man that lasts for at
least 3 years, and less if the same have a common child or the union was continued by concluding the marriage. Informal life partnership is a family union of two same sex persons that have
not concluded a lifetime partnership in front of the competent authority, if the community lasts
for at least 3 years, and it has meet the requirements prescribed for the validity of the life partnership from the beginning.
209
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Write in the account of a county or the City of Zagreb
TAX REGULATIONS
Act on the Financing of Units of Local and Regional Self-government, (Official
Gazette No. 117/93, 69/97, 33/00, 73/00, 127/00, 59/01, 107/01, 117/01, 150/02,
147/03, 132/06, 26/07 – Decision of the Constitutional Court of the Republic of
Croatia 73/08 and 25/12, 147/14, 100/15),
General Tax Act (Official Gazette No. 147/08, 18/11, 78/12, 136/12), 73/13, 26/15,
44/16),
Inheritance Act (Official Gazette No. 48/03, 163/03, 35/05, 127/13, 33/15),
Family Act (Official Gazette No. 103/15),
Same Sex Life-Partnership Act (Official Gazette No. 92/14), Order on payment of
budget revenues, mandatory contributions and revenues for financing other public
needs in 2016 (Official Gazette No. 35/16).
2.2 TAX ON ROAD MOTOR VEHICLES
TAXABLE PERSONS
A natural person or legal entity that is the owner of a registered passenger car or
motorcycle.
A PASSENGER CAR is a motor vehicle meant for the transportation of persons
that, apart from the driver’s seat, has at most eight seats and the freight capacity of which does not exceed 250 kg.
A MOTORCYCLE is a motor vehicle on two wheels with or without a sidecar,
and a motor vehicle on three wheels if the mass does not exceed 400 kg.
210
SUBJECT OF TAXATION
1. A passenger vehicle (up to ten years old)
2. A motorcycle.
AMOUNT OF TAX
The car is taxed according to the power of the engine expressed in kW and the age
of the car.
1. Passenger car
Power of the engine
Over kW
Up to kW
55
70
100
130
55
70
100
130
Up to 2 years old
300.00
400.00
600.00
900.00
1,500.00
To be paid in HRK
From 2 to 5 years old
From 5 to 10 years old
250.00
350.00
500.00
700.00
1,200.00
200.00
250.00
400.00
600.00
1,000.00
2. Motorcycle
Power of the engine
Over kW Up to kW
20
50
80
20
50
80
Up to 2 years old
100.00
200.00
500.00
1,200.00
To be paid in HRK
From 2 to 5 years old From 5 to 10 years old
80.00
150.00
400.00
1,000.00
Over 10 years old
50.00
100.00
300.00
800.00
50.00
200.00
600.00
EXEMPTIONS
1. The tax on road motor vehicles is not paid on:
vehicles of the Republic of Croatia and units of local and regional self-government,
vehicles of bodies of the national administration and bodies of local and regional self-government
vehicles of healthcare establishments and fire-fighting units
vehicles of diplomatic and consular missions and of foreign diplomatic personnel
special vehicles with which the owners carry out a registered activity for the
transportation of the dead and for taxis.
2. The tax on road motor vehicles is not paid by persons who have been entirely
exempted from the payment of customs duty and VAT or turnover tax while procuring the vehicle.
i
Counties may by their decisions also prescribe other exemptions and deductions.
On change of ownership of a road motor vehicle during the calendar year, a
new owner does not pay the tax on the road motor vehicle if this tax was set
for the previous owner.
211
If during a calendar year a new motor vehicle is procured, the owner of this
vehicle pays the annual tax diminished proportionally by the part of the year
before the procurement of the vehicle.
of the ruling setting this tax or during the registration of the vehicle.
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TAX REGULATIONS
Act on the Financing of Units of Local and Regional Self-government (Official Gazette No. 117/93, 69/97, 33/00, 73/00, 127/00, 59/01, 107/01, 117/01, 150/02,
Croatia 73/08 and 25/12, 147/14, 100/15),
General Tax Act (Official Gazette No. 147/08, 18/11, 78/12, 136/12), 73/13,
26/15, 44/16),
Order on payment of budget revenues, mandatory contributions and revenues
for financing other public needs in 2016 (Official Gazette No. 35/16).
2.3 TAX ON VESSELS
TAXABLE PERSONS
The legal entity and natural person that is the owner of the vessel.
i
VESSEL is a ship (yacht or dinghy) or inland navigation vessel used for leisure, sport or
recreation.
212
SUBJECT OF TAXATION
A vessel in terms of length expressed in meters, how old the vessel is, with or without
a cabin, and the power of the engine expressed in kW
AMOUNT OF TAX
1. Vessel without a cabin
Length of the vessel (in meters)
Over
Up to
5m
7m
10 m
Up to 30 kW
7m
10 m
Engine power (kW), paid in HRK
Over 30 and up to 100 kW
Over 100 kW
HRK 200.00
HRK 300.00
HRK 450.00
100.00
200.00
HRK 400.00
HRK 500.00
HRK 600.00
2. Vessel with a cabin, motor powered
Length of the vessel
(in meters)
Over
Up to
5m
7m
10 m
12 m
7m
10 m
12 m
Up to 30 kW
Over 30 and up to
100 kW
Over 100 and up to
500 kW
Over 500 kW
HRK 200.00
HRK 300.00
HRK 400.00
HRK 200.00
HRK 400.00
HRK 500.00
HRK 1,000.00
HRK 300.00
HRK 500.00
HRK 1,000.00
HRK 3,000.00
HRK 2.500.00
HRK 3,500.00
HRK 5,000.00
3. Vessel with cabin and powered by sails
Length of the
vessel (in meters)
Over
Up to
5m
7m
10 m
12 m
7m
10 m
12 m
Up to 10 kW
Over 50 kW
HRK 200.00
HRK 300.00
HRK 400.00
HRK 300.00
HRK 600.00
HRK 800.00
HRK 1,500.00
HRK 400.00
HRK 1,000.00
HRK 2,000.00
HRK 3,000.00
HRK 500.00
HRK 2,000.00
HRK 3,000.00
HRK 4,000.00
EXEMPTIONS
Tax on vessels is not paid on vessels with which a registered activity is carried out and
ships owned by the domiciliary population on the islands that are used for the necessary organization of life and the maintenance of property on the islands.
i
Counties may prescribe by their decisions also other exemptions and deductions.
of the ruling setting the tax.
213
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TAX REGULATIONS
Croatia 73/08 and 25/12, 147/14, 100/15),
26/15, 44/16),
2.4 TAX ON COIN OPERATED MACHINES
FOR GAMES FOR AMUSEMENT
TAXABLE PERSONS
The legal entity and natural person who puts coin operated machines intended for
use for the purposes of amusement in entertainment clubs, catering facilities, public
facilities and other public premises.
Coin operated machines for amusement are deemed to be coin operated machines that are used for the provision of games for entertainment on computers,
simulators, video machines, pinball, darts, billiards, table soccer and similar slot
machines that are put into action with a coin, counter or with a charge, during
which the player does not acquire any winnings in money, things or rights.
Entertainment clubs are deemed to be areas in which games on coin operated
machines for amusement are organized and the size of which cannot be less than
30 m2 and in which at least 5 slot machines for amusement must be placed.
214
SUBJECT OF TAXATION
The coin operated machines for amusement that are put into use in arcades, catering facilities, public facilities and other public premises.
AMOUNT OF TAX
HRK 100 per month per coin operated machine.
EXEMPTIONS
The tax on coin-operated machines for amusement is not paid if on a coin operated
machine of the billiards kind has placed on it in a prominent place the stamp of the
Croatian Billiards Federation.
The taxable person is obliged, before putting the coin-operated machines for games
for amusement to use, to submit to the competent tax office, according to the place
of use of the coin-operated machines, an application for the issuing of the control
stamp intended for making the machines. The tax office will then issue the control
stamp for marking the coin-operated machines, which is valid only for the month
when the application was submitted and the relevant taxes on coin-operated machines were paid. For each following month of use of the slot machine at the same
location, the taxpayer is obliged, with the request for the issuance of the stamp, to
deliver only a proof of the payment of tax on slot machines for amusement.
The taxpayer is required to pay the established amount of taxes by the end of the
month for the next month.
TAX REGULATIONS
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Croatia 73/08 and 25/12, 147/14, 100/15),
26/15, 44/16),
Ordinance on Organizing Games for Amusement (Official Gazette No. 86/01,
3/02), 69/11, 23/16),
Ordinance on Technical Functionality of Slot Machines and Gaming Tables (Official
Gazette No. 107/03, 69/11),
Order on Payment of Budget Revenues, Mandatory Contributions and Revenues for
Financing Other Public Needs in 2016 (Official Gazette No. 35/16).
216
3. CITY OR MUNICIPAL TAXES
3.1 SURTAX ON INCOME TAX
TAXABLE PERSONS
Income tax taxpayers who have a domicile or habitual residence in the territory of the
municipality/city that stipulated the obligation of payment of municipal taxes.
TAXABLE BASE
The amount of income tax.
TAX RATES
1. A municipality at a rate up to 10%,
2. A city with a population of less than 30,000 at a rate of up to 12%,
3. A city with a population of more than 30,000 at a rate of up to 15%,
4. The City of Zagreb at a rate of up to 18%.
Rates of municipal taxes by cities/municipalities:
Andrija{evci
Bo{njaci
âzma
Antunovac
Brckovljani
êminac
Bale
Brdovec
êpin
Babina Greda
Brela
Darda
Barban
Brestovac
Daruvar
Bedenica
Breznica
Davor
Bednja
Brezni~ki Hum
Delnice
Belica
Brinje
Deànovac
8%
5%
10%
10%
3%
10%
1%
10%
10%
5%
5%
5%
5%
5%
10%
3%
10%
10%
10%
3%
5%
1%
10%
5%
Beli Manastir
Brodski Stupnik
Dicmo
Beli{}e
Buje
Donja Stubica
Benkovac
Bukovlje
Donja Vo}a
Beretinec
Buzet
Donji Andrijevci
Bilice
Cerna
Donji Kukuruzari
Bilje
Cernik
Donji Lapac
Biograd na Moru
Cerovlje
Donji Martijanec
Biskupija
Cestica
Donji Miholjac
5%
10%
8%
10%
6%
10%
5%
5%
10%
7%
6%
8%
10%
5%
6%
5%
10%
5%
12%
2%
5%
4%
10%
8%
Bistra
Cista Provo
Dragali}
Bizovac
Civljane
Dra`
Bjelovar
Crikvenica
Drenovci
Blato
âbar
Drni{
Bol
âglin
Dubrava
Borovo
âkovec
Dubravica
Dubrova~ko
primorje
Dubrovnik
Duga Resa
Dugo Selo
Dugopolje
10%
3%
10%
3%
5%
2%
12%
10%
5%
10%
5%
5%
10%
5%
6%
10%
10%
7%
10%
10%
10%
9%
8%
217
Dvor
\akovo
\ur|enovac
\urmanec
Erdut
Ervenik
Farka{evac
Fazana
Feri~anci
Fuìne
Gar~in
Gare{nica
Gornji Bogi}evci
Gornji Kneginec
Gospi}
Gra~ac
Gra~i{}e
Gradec
Grubi{no polje
Hra{}ina
Hrvace
Hrvatska Dubica
Hrvatska Kostajnica
Ilok
Imotski
Ivanec
Ivani} Grad
Ivankovo
Jagodnjak
Jakovlje
Jak{i}
Jastrebarsko
Jelsa
Kamanje
Kanfanar
Kapela
Kaptol
Karlovac
Karojba
Ka{tela
Ka{telir-Labinci
Kijevo
28
5%
10%
10%
10%
1%
3%
3%
3%
10%
5%
10%
10%
5%
10%
10%
7%
5%
5%
10%
5%
10%
3%
6%
10%
12%
10%
6%
10%
3%
5%
10%
9%
10%
10%
5%
8%
10%
14%
5%
12%
5%
5%
Kistanje
Klanjec
Klenovnik
Klin~a Sela
Klis
Klo{tar Ivani}
Klo{tar Podravski
Kneèvi Vinogradi
Knin
Komià
Konavle
Kon~anica
Konj{~ina
Kor~ula
Kraljevica
Kra{i}
Kravarsko
Kri`
Krièvci
Krnjak
Kula Norinska
Kutina
Labin
Lani{}e
Lasinja
Lastovo
Lepoglava
Lipovljani
Li{ane Ostrovi~ke
Li`njan
Lokvi~i}i
Lovas
Lovinac
Ludbreg
Luka
Luka~
Lumbarda
Lupoglav
Ljube{}ica
Magadenovac
Majur
Makarska
3%
12%
7%
10%
10%
2%
5%
5%
10%
5%
10%
5%
10%
6%
5%
6%
5%
2%
10%
8%
10%
12%
6%
5%
10%
3%
8%
6%
6%
5%
7%
5%
8%
8%
5%
8%
5%
1%
10%
2%
5%
10%
Mali Bukovec
Mar~ana
Marija Gorica
Marijanci
Marku{ica
Maru{evec
Medulin
Metkovi}
Milna
Mljet
Motovun
Mrkopalj
Mu}
Murter
Na{ice
Negoslavci
Nova Gradi{ka
Nova Kapela
Novi Marof
Novi Vinodolski
Novska
Nu{tar
Ogulin
Oku~ani
Omi{
Opatija
Opuzen
Orle
Osijek
Oto~ac
Otok (Sinj)
Otok (Vinkovci)
Ozalj
Pakrac
Pazin
Peru{i}
Petlovac
Petrijanec
Petrijevci
Petrinja
Pi}an
Pirovac
5%
5%
10%
5%
5%
5%
5%
10%
3%
10%
1%
7%28
7%
6%
8%
5%
12%
10%
10%
7%
10%
6%
10%
10%
8%
7,5%
10%
5%
13%
9%
10%
10%
12%
10%
9%
8%
5%
5%
5%
10%
2%
6%
5% until 31 January 2016
218
Pisarovina
Pleternica
Plitvi~ka jezera
Plo~e
Podbablje
Podcrkavlje
Podgora
Podstrana
Podgora~
Pokupsko
Pola~a
Popovac
Popova~a
Poèga
Pregrada
Preseka
Primo{ten
Proloàc
Promina
Pu~i{}a
Pula
Pu{}a
Rakovec
Rakovica
Ra{a
Ravna Gora
Re{etari
Ribnik
Rijeka
Rovinj
Rugvica
Runovi}i
Ruì}
Sibinj
Senj
Sinj
Sisak
Skradin
Slatina
6%
10%
5%
10%
6%
5%
10%
8%
5%
5%
10%
3%
6%
10%
10%
5%
10%
5%
5%
5%
12%
10%
3%
8%
6%
7.5%
10%
5%
15%
6%
6%
6%
5%
10%
10%
8%
10%
5%
6%
Slavonski Brod
Slunj
Solin
Split
Sra~inec
Stara Gradi{ka
Stari Grad
Stari Mikanovci
Staro Petrovo Selo
Stupnik
Sutivan
Sveta Nedelja
(Samobor)
Sveta Nedelja (Labin)
Sveti \ur|
Sv. Filip i Jakov
Sveti Ilija
Sveti Ivan Zelina
Sveti Lovre~
Sveti Petar u [umi
Svetvin~enat
[ibenik
[kabrnja
[pi{i} Bukovica
[tefanje
[titar
Tinjan
Tisno
Tordinci
Tribunj
Trnovec Bartolove~ki
Trogir
Trpanj
Tu~epi
Udbina
Umag
Une{i}
Valpovo
Vara`din
12%
5%
10%
10%
5%
5%
10%
10%
10%
6%
10%
6%
6%
5%
10%
10%
12%
5%
7%
5%
10%
10%
9%
10%
10%
5%
9%
5%
6%
3%
8%
10%
10%
5%
6%
5%
8%
10%
Vara`dinske Toplice
Vela Luka
Velika Gorica
Velika Kopanica
Veliki Bukovec
Veliko Trgovi{}e
Vidovec
Vinica
Vinkovci
Virovitica
Vis
Visoko
Vi{njan
Viìnada
Vladisavci
Vodice
Vodnjan
Vojni}
Vrbanja
Vrbje
Vrbovec
Vrbovsko
Vrgorac
Vrhovine
Vrlika
Zadar
Zadvarje
Zagreb
Zagvozd
Zapre{i}
Zlatar
Zlatar Bistrica
Zmijavci
@akanje
@minj
@umberak
@upa dubrova~ka
@upanja
219
10%
9%
12%
7%
5%
7.5%
10%
5%
13%
10%
3%
10%
5%
3%
10%
6%
7.5%
7.5%
5%
3%
12%
10%
10%
5%
7%
12%
1%
18%
6%
12%
10%
5%
8%
5%
5%
3%
10%
12%
Forms and deadlines of submission of forms related to the personal income tax are
presented in Chapter 4.1
Payment accounts and payment deadlines concerning the personal tax income are
stated in Chapter 4.1
TAX REGULATIONS
Gazette No. 117/93, 69/97, 33/00, 73/00, 127/00, 59/01, 107/01, 117/01,
150/02, 147/03, 132/06, 26/07 – Decision of the Constitutional Court of the
Republic of Croatia, 73/08 and 25/12, 147/14, 100/15),
26/15, 44/16),
Income Tax Act (Official Gazette No. 177/04, 73/08, 80/10, 114/11, 22/12,
144/12, 120/13, 125/13, 148/13, 83/14, 143/14, 136/15),
9/09, 146/09, 123/10, 137/11, 61/12, 79/13, 160/13, 157/14, 137/15),
Decision of the city/municipality on urban/municipal taxes,
3.2 CONSUMPTION TAX
TAXABLE PERSONS
Legal and natural persons who provide catering services.
The taxable period spans from the first to the last day of the month.
TAXABLE BASE
Selling price of drinks that are sold in restaurants.
i
The tax is payable on the consumption of alcoholic drinks (brandy, schnapps and
spirits), natural wines, special wines, beers, and non-alcoholic drinks sold in catering
facilities.
TAX RATES
Up to 3% (according to the decision of the city/municipality).
Established obligation of the consumption tax for the taxation period, the taxpayer
states in the Form, PP-MI-PO and is to be submitted by the 20th day of the month
for the previous month.
220
i
In municipalities and cities that have decided to transfer the establishing of tax on the
Tax Administration, the taxpayer submits the Form PP-MI-PO to the competent office
of the Tax Administration according to his/her headquarters, that is permanent or
temporary residence, for all business premises, stating individual data for each municipality/city on the Form.
In municipalities and cities that have not decided to transfer the establishing of tax on
the Tax Administration, such form is submitted to the competent administrative body
of the local self-government unit, individually for each business premises.
The taxpayer is required to pay the established amount of taxes by the last day of the
month for the previous month.
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TAX REGULATIONS
Gazette No. 117/93, 69/97, 33/00, 73/00, 127/00, 59/01, 107/01, 117/01,
Republic of Croatia 73/08 and 25/12, 147/14, 100/15),
26/15, 44/16),
221
3.3 TAX ON HOLIDAY HOUSES
TAXABLE PERSONS
Legal and natural person who is the owner of a holiday house.
A HOLIDAY HOUSE is every building or part of a building or an apartment that
is used occasionally or seasonally.
i
A holiday house not a homestead building that offers accommodation for agricultural machinery, tools and other accessories.
SUBJECT OF TAXATION
Square meter of usable area of a holiday house.
AMOUNT OF TAX
From HRK 5.00 to HRK 15.00 per square meter of usable area.
i
A city or municipality prescribes the amount of tax on a holiday house depending on
the location, the age, state of infrastructure and other circumstances that are essential for the use of a holiday house.
EXEMPTIONS
The tax on holiday houses is not paid:
1. on holiday houses that cannot be used because of war damage and natural
disasters (floods, fire, earthquake) and because of age and dilapidation,
2. on holiday houses during the time displaced persons and refugees are quartered in them,
3. on rest and recreation centers owned by units of local and regional self-government that are used for the accommodation of children up to 15 years old
4. if by a decision of a municipality or city some other exemption from the payment of the tax on holiday houses from economic or social reasons has been
made.
Those liable to pay the tax on holiday houses are bound to submit to the competent
tax body information about holiday homes that relates to the place where the buildings are, and the useful area, up to March 31st of the year for which the tax on
holiday houses is assessed.
The taxpayer is required to pay the established amount of taxes according to the decision of the city or municipality, 15 days from the receipt of the ruling assessing this tax.
222
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TAX REGULATIONS
Gazette No. 117/93, 69/97, 33/00, 73/00, 127/00, 59/01, 107/01, 117/01,
26/15, 44/16),
3.4 TAX ON TRADE NAME
TAXABLE PERSONS
A natural person or legal entity that is liable to pay corporate income tax or income
tax and is registered for the performance of an activity.
i
Legal entities and natural persons that comprise several business units (shops, plant,
workshop, and sales outlets) are liable to pay the trade name tax for each business
unit.
SUBJECT OF TAXATION
Company or name.
AMOUNT OF TAX
Up to HRK 2,000.00 per each company or name.
223
EXEMPTIONS
Legal and natural persons that do not perform activities do not pay tax on the company.
The taxpayer is required to pay the established amount of taxes according to the
decision of the city or municipality.
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TAX REGULATIONS
Gazette No. 117/93, 69/97, 33/00, 73/00, 127/00, 59/01, 107/01, 117/01,
26/15, 44/16),
224
3.5 TAX ON THE USE OF PUBLIC LAND
TAXABLE PERSONS
Legal and physical person using the public space.
i
What is considered a public space is prescribed with the decision made by the municipality or the city.
SUBJECT OF TAXATION
Public areas used by legal and natural persons.
AMOUNT OF TAX
The tax amount is prescribed by the municipality or the city.
Delivery deadline shall be regulated by a decision of the municipality/city.
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TAX REGULATIONS
Gazette No. 117/93, 69/97, 33/00, 73/00, 127/00, 59/01, 107/01, 117/01,
26/15, 44/16),
225
4. JOINT TAXES
4.1 INCOME TAX
TAXABLE PERSONS
1. Natural person who acquires an income,
2. An heir in respect of all tax liabilities arising from an income acquired by the testator until his/her death. An heir is also a taxable person in respect of the income
coming from inherited sources of income.
i
If several natural persons jointly acquire an income, each natural person separately is
a taxable person, in respect of his/her share in the jointly acquired income.
Resident taxable person is a natural person who in the Republic of Croatia has
domicile or habitual residence. A resident is also a natural person who has neither domicile nor habitual residence, but is employed in the civil service
of the Republic of Croatia and receives a salary on that basis.
Non-resident taxable person is a natural person who has neither domicile nor
habitual residence in the Republic of Croatia, but acquires an income in the Republic of Croatia, which is subject to taxation provided by the Income Tax Act.
INCOME is the difference between the receipts in the tax period and the expenses incurred in the same tax period.
SOURCES OF INCOME are receipts earned from employment, self-employment, property and property rights, capital, insurance and other receipts.
Income that is taxed according to the following sources of income:
1. Income from employment
2. Income from independent personal activities
3. Income from property and property rights,
4. Income from capital,
5. Income from insurance,
6. Other income
i
Income tax is levied and paid for the calendar year (the taxable period). The taxable
period may be shorter than the calendar year in the following cases:
1. if a resident becomes a non-resident during a single calendar year or vice versa, in
which case the taxable period includes the period in which such individual was a
resident or a non-resident,
2. on the birth or death of the taxable person.
Receipts not deemed an income:
1. Direct payments of insurance premiums for the purchase of supplementary part
of lifetime pension benefits pursuant to the Pension Insurance Act, which an insured person would receive, subject to a prescribed age and/or completion of
226
prescribed service periods. Employers on behalf of employees pay these premiums at the time of their retirement,
Family pensions paid out to orphans, after death of their parents, pursuant to the
Pension Insurance Act and the Act on the Rights of Croatian Defenders of the
Homeland War and Their Family Members,
State rewards established pursuant to the regulations adopted by the Croatian
Parliament and the Government of the Republic of Croatia, rewards granted by
units of local and regional self-government and regulated by these units’ statutes, as well as cash rewards for medals won at Olympic Games and world or
European championships, planned in the Budget of the Republic of Croatia and
the budgets of units of local and regional self-government,
receipts acquired by natural persons on the basis of gifts from legal or natural
persons for health care purposes (surgeries, medical treatment, purchase of medication and orthopedic devices), which are not covered by the basic, supplementary, additional or private health insurance, neither at the expense of natural
persons, provided that the donation or payment of expenditure incurred for that
purpose is made to the bank account of the gift recipient or the health care institution and based on authentic documents.
benefits from the purchase of cheaper goods and services, including a commemorative reception of additional goods or services, and other similar receipts which are
available to all individuals under the same conditions, and even if they are not related to the exercise of the taxable income (such as rewards points for our regular
customers, discounts on the basis of collected points, sale actions, etc.).
2.
3.
4.
5.
Following receipts also not deemed to be an income:
1. Receipts pursuant to special regulations
1.1. Grants for providing for disabled Homeland War veterans and the family
members of killed, captured or missing Homeland War veterans,
1.2. welfare benefits,
1.3. Child benefit and monetary receipts for a layette
i Receipts based on support for a newborn child or grants for a layette for the newborn
child paid or provided by local and regional self-government units, on the basis of
their enactments and for which the funds were planned in the budgets of those units
are not deemed an income)
1.4. Receipts of disabled persons, except for salaries and pensions,
1.5. Grants for property destruction or damage as a result of natural disasters,
2. Grants for property destruction or damage as a result of war,
3. Inheritances and gifts,
4. Receipts from the alienation of personal property,
i Return packaging and waste collected within the framework of organized actions
and activities for the protection of the environment are not deemed as waste.
5. Damages unrelated to a economic activity,
6. Receipts from the participation in prize competitions or contests held under equal
conditions and open to everyone, as well as receipts from games of chance pursuant to a special act,
7. Financial compensation to the pensions paid to pensioners by local and regional
self-government units based on their enactments and for which the funds were
planned in the budgets of those units,
i
227
8. Grants paying or giving to children in the event of death of their parents by local
and regional government units, on the basis of their enactments, and legal and
natural persons
9. Receipts acquired based on the insurance of things, liability, life and property
i Receipts deriving from life insurance and voluntary pension insurance shall be deemed
income if the premiums for this insurance were recognized as expenses for taxation
purposes.
NOTE: If the stated receipts are in connection with an income, the same
are deemed to be a taxable income. The receipts acquired within an activity that is subject to taxation pursuant to the Profit Tax Act shall not be
deemed income.
Income tax is not paid on:
1. Compensation for the difference of wages during the time of doing military
services in the armed forces of the Republic of Croatia,
2. Compensation for wages to members of civil protection and other persons for
activities within the framework of civil protection and protection from natural
dis-asters,
3. Compensation for wages for the time of temporary unemployment or inability to
work paid at the cost of the extra-budgetary funds,
4. Rewards to pupils and students during practical work and apprenticeship up to
up to HRK 1,600.00 monthly,
5. Rewards to pupils and students won in competitions within the educational
system and in organized school and university competitions,
6. Receipts of pupils and students in full-time education for work via pupils’ and
students’ associations up to HRK 50,000.00 per year,
7. Damages paid for work-related accidents, paid pursuant to court rulings or settlements during the judicial proceedings, provided that they are payable as lump
sums,
8. Remuneration and rewards received by convicted persons for the work in penal
and correctional or juvenile institutions,
9. Receipts of employees and natural persons on account of compensations, grants
and rewards paid by employers or payers of the receipts, up to the stated
amounts (see table below),
10. Receipts on the basis of compensations, grants and prizes of persons who carry
out some independent personal activity (small business, self-employment and
professional income activity) up to prescribed amounts (see table below),
11. Receipts on account of business trips of natural persons who do not acquire receipts from employment, or receipts used for the determination of other income, in non- profit organizations along with remuneration, up to the prescribed amount (see table below),
12. Scholarships to pupils and students in full-time education at secondary, two-year
post-secondary and higher schools and universities, up to HRK 1,600.00 monthly, Scholarships to students in full-time education at universities that are awarded scholarships for outstanding achievement and grades, which are selected by
228
13.
14.
15.
16.
17.
a public tender that is open to all students under equal conditions, exceptionally
up to HRK 4.000.00 monthly Non-taxable portion is recognized on the basis of
only one scholarship. Tax deductible non-taxable part of the scholarships up to
HRK 4,000.00 per month and tax deductible non-taxable part of the scholarship
up to HRK 1,600.00 per month are mutually exclusive,
scholarships to students for full-time education at two-year post-secondary and
higher schools and universities, as well as to postgraduate and postdoctoral
students, for which the funds have been earmarked in the Budget of the Republic of Croatia and scholarships funded from the EU budget, arranged by special
international agreements, which are assigned to regular education students at
higher education institutions,
Scholarships paid to amateur athletes pursuant to special regulations for the
improvement of their sport skills, up to HRK 1,600.00 monthly,
Grants awarded by trade unions to trade union members from union dues,
Rewards for sport achievements pursuant to special regulations up to HRK
20,000.00 per year and compensations to athletes (amateurs) pursuant to special regulations up to HRK 1,600.00 per month,
Premiums for voluntary pension insurance that the employer pays to domestic
voluntary pension fund registered in accordance with the regulations which govern voluntary pension insurance, and in favor of his workers, with their consent,
to domestic voluntary pension fund which is registered in accordance with the
rules governing voluntary pension insurance, up to HRK 500.00 for each month
of the tax period, i.e. up to HRK 6,000.00 per year,
If the employer during one month pays premiums for voluntary pension insurance in
favor of the workers (or the taxpayer pays for themselves on income from self-employment, which is determined on the basis of business records) for several months of this
tax period, these premiums can be paid tax free for up to HRK 500.00 for each month
of the tax period (usually a calendar year) for which the premium should be paid.
i If the employer pays premiums for voluntary retirement insurance for the workers
once a year (or the taxpayer pays for themselves on income from self-employment
income, which is determined based on business books) they can make a one-time
tax-free payment of up to HRK 6,000.00.
i Premiums of voluntary pension insurance that employers pay for their workers (or the
taxpayer pays for themselves on income from self-employment income, which is determined based on business books) above HRK 6,000.00 a year are considered wages
and taxed as income from employment during each premium payment.
i
18. scholarships awarded to students who were selected on the public tenders
which are open to all students on equal terms for regular education at institutions of higher education paid by endowments, foundations and other institutions registered in Republic of Croatia for educational and learning purposes or
for scientific research purposes that act in accordance with special regulations,
and that have been established with the purpose of scholarship,
19. financial aid to professional training attendees for work without employment,
20 receipts that are paid as grants to individuals or allocated from EU funds and programs through a body accredited in accordance with the rules of the European
229
Commission in Croatia, directly or through intermediaries, for the implementation
of mobility activities within EU programs and funds, and for the purposes of education and professional training to cover the costs of transport, food and accommodation, and for the implementation of the project activities reported by individuals (payments for rental space, insurance, equipment and materials, etc.), in
accordance with the financial regulation of the European Commission, provided
that the insured authentic documents are in accordance with regulations of the
European Commission (contract, a final report, invoice, etc.)
i
Amounts of non-taxable receipts are determined by bodies accredited in the Republic of
Croatia, in accordance with the rules of the European Commission, through which those
receipts are paid, based on regulations or agreements with the European Commission,
and based on performed analyses, which determine the amount of these receipts.
21. receipts equal to the difference between the received grants paid from EU funds
and the budget of the Republic of Croatia for implementation of permanent cessation of fishing activities with the destruction of the vessel and the book value
of the vessel
22. students’ grants in postgraduate studies in accordance with Items 12, 13 and
18, and receipts (excluding receipts from employment, self-employment, property and property rights, capital, insurance and other receipts) which are paid to
postgraduates, postdoctoral students, researchers and scientists in accordance
with Items 13 and 18, respectively from funds and programs of the EU and other
international funds and programs governed by special regulations and international agreements, to cover the cost of education, training and scientific research,
approved on the basis of public tenders, authentic documents and to prescribed
amounts.
TAX EXEMPT FEES, GRANTS, AWARDS AND OTHER RECEIPTS:
Fees
Tax exempt amounts
Transportation costs on a business trip
in the amount of actual expenditure
The costs of overnight stay on a business trip
in the amount of actual expenditure
The cost of transportation to and from work with local public in the amount of actual expentransport
ses, according to the cost of
monthly or individual transportation tickets
The cost of transportation to and from work with interlocal in the amount of actual expenpublic transport
ses, according to the cost of
monthly or individual tickets If a
worker also has to use local transport from the station of interlocal public transport, the actual
expenditure shall be laid down in
the amount of the cost of the
local and interlocal public transport
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Fees
The fee for the use of private cars for official purposes
Compensation for the difference of wages during the time of
doing military services in the armed forces of the Republic of
Croatia,
Compensation for wages to members of civil protection and
other persons for activities within the framework of civil protection and protection from natural disasters,
Remuneration for temporary inability to work which is paid at
the expense of the Croatian Institute for health insurance, the
State budget and the Centre for social welfare, and on a single receipt for business or personal-based layoff by the Croatian employment service according to a special regulation
Compensation for damages as a result of accidents at work
according to the decision of the Court or a settlement in the
course of court proceedings, if the fee is specified in immediate amount (this also applies to the settlements concluded
with the competent State Attorney in the procedures for the
peaceful settlement of the dispute and the plea agreement
reached in conciliation in individual labor disputes according
to the law on mediation)
INCENTIVES
Grants awarded by trade unions to trade union members
from union dues,
Disability of a worker
Death of a worker
Note: Employers’ support to children of workers is considered
to be completely non-taxable receipts, as well as support to
children that in case of death of parents are paid or given by
local and regional governments on the basis of their general
acts, as well as legal and natural persons
The death of a close family member of the worker (married
and common-law spouse or life partner and non-life partner,
parent, parent of marital and common-law spouse or life partner and informal life partner, children, other ancestors and
descendants in a direct line, adopted children and children
cared for and adults to which the taxpayer is the guardians
according to a special law)
Sick leave of workers of more than 90 days (the period of sick
leave longer than 90 days does not have to be one calendar
year)
Support for a newborn child
Tax exempt amounts
up to HRK 2.00 per kilometer
Types of fee
Types of fee
Types of fee
Types of fee
social benefit amount
up to HRK 2,500.00 per year
up to HRK 7,500.00
up to HRK 3,000.00
up to a height of one budgetary
unit prescribed by the Act on the
Execution of the State Budget of
GIFTS AND SEASON’S AWARDS
The gift to a child under 15 years of age
up to HRK 600.00 per year
Commemorative awards (Christmas allowance, allowance for up to HRK 2,500.00 per year
vacation time, etc.)
Awards to workers
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Fees
For 10 years of service
For 40 years of service, and every next 5 years of service
DAILY WAGES
Daily wages in the state – more than 12 hours a day
Daily wages in the state – more than 8 and less than 12 hours
per day
Daily wages abroad
Tax exempt amounts
up to HRK 1,500.00
up to HRK 2,000.00
up to HRK 2,500.00
up to HRK 3,000.00
up to HRK 3,500.00
up to HRK 4,000.00
up to HRK 5,000.00
up to HRK 170.00
up to HRK 85.00
up to the amount and under the
conditions established by the regulations of expenditures for
official travel for the users of the
State budget,
Daily wages for official travels that are paid to workers from in the total amount
the EU budget for carrying out tasks within their jobs in
connection with the activities of the employer
APPENDICES
Field allowance in the country covering costs of food and up to HRK 170.00 per day
other expenses of the employee in the field in the country,
except the costs of accommodation that are to be settled at
the expense of the employer and are not considered income
of workers
Field allowance abroad covering costs of food and other ex- up to HRK 250.00 per day
penses of the employee in the field abroad, except the costs
of accommodation that are to be settled at the expense of the
employer and are not considered income of workers
Maritime supplement
up to HRK 250.00 per day
Maritime addition to international navigation ships
up to HRK 400.00 per day
Allowance for separation from family
up to HRK 1,600.00 per month
SEVERANCE PAY
Severance pay is paid upon retirement
up to HRK 8,000.00
Severance for business and personal dismissals under labor up to HRK 6,400.00 for each year
law
of service with that employer
Severance payments due to an injury or occupational disease up to HRK 8,000.00 for each year
of service with that employer
i
Allowances for traveling within the country and abroad will be paid for travel from the
place of work, or place of residence/habitual residence of workers who are sent to
travel for work purposes to another place that is located at least 30 kilometers in order
to perform certain tasks related to the activities of the employer. Daily allowances for
business trips in the country and abroad are fees to cover costs of food, beverages and
transportation in the place in which the employee was sent on a business trip. A business trip is considered to be a journey for up to 30 consecutive days. If on a business
232
trip, one meal is provided (lunch or dinner), tax-free per diem to be paid in cash shall
be reduced by 30% or 60% if two meals (lunch and dinner) are provided.
i Field allowance at home and abroad will be paid when a worker resides outside of
their permanent or temporary residence for work performed outside the headquarters of the employer or the headquarters of a separated business unit of the employer and when the employer carries out this kind of activity that is by its nature
related to the work in the field Place of work is different from the employer’s headquarters or its business units and place of residence or temporary residence of the
worker, with the place of work at least 30 kilometers of distance from these places).
Field allowance may be paid under the following conditions even if there is no need
for workers’ spending the night in the field. Work in the field is considered to be the
workers’ participation in development – research knowledge transfers which aim to
design and improve products and business solutions related to the activity of the
employer, as well as verification, integration and implementation of business solutions that are the product of the employer, and if these duties are in the workers’ job
description. Field allowance abroad refers to workers sent or deployed to work
abroad based on employment with an employer based in the Republic of Croatia. If
in the field, one meal is provided to the worker (lunch or dinner), the tax-free per
diem to be paid in cash shall be reduced by 30% or 60% if two meals (lunch and
dinner) are provided.
i Compensation for living separately from the family is paid to the employee for the time
spent working in the headquarters of the employer or its separate business units, if the
place of work is different from the place of residence or temporary residence of the
worker. Family is considered to be a spouse, children, adopted child, stepchild and
protégée, if they are registered at the same address of residence as the taxpayer.
i A Maritime supplement applies for seafarer crew members of ships navigating nationally, in accordance with special regulations, seafarer ship crew members sailing
on ships in international maritime transport services that perform transportation between Croatian and foreign ports within the limits of the Adriatic Sea, fishermen crew
members of fishing vessels operating in the fishery of Croatia, in accordance with
special regulations. Maritime supplement applies to seafarer crew members of ships
sailing in international waters, regardless of the nationality of the ship, based on the
calculation of maritime additive which is attached to the tax return for the tax period.
A ship in international navigation is, in accordance with a special law, a ship sailing
from Croatia to a harbor and vice versa or between foreign ports or sailing on the
high seas or in territorial waters of foreign countries in order to provide services related to offshore activities such as research and use of energy and the like.
Fees based on daily wages at home and abroad, field allowances at home and
abroad, maritime accessories and allowances for separation from families are
mutually exclusive. The right to a non-taxable amount of daily separation allowances is excluded if for those days during the month, per daily wages, field
or maritime allowances are paid. The amount of the daily separation allowance is a tax-free monthly amount of the separation allowance divided by
total days in the month in which the compensation is paid.
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NON-TAXABLE SCHOLARSHIPS, AWARDS AND FEES FOR SPORTS ACHIEVEMENTS AND AWARDS AND RECEIPTS OF PUPILS AND STUDENTS:
Scholarships
Tax exempt amounts
Scholarships to students and pupils for full-time education at
secondary, high schools and higher schools and universities that
are awarded scholarships for outstanding achievement and
grades, who are selected by a public tender that is open to all
students under equal conditions, exceptionally up to HRK
4.000.00 per month. Non-taxable portion is recognized based
on only one scholarship. Tax deductible non-taxable part of the
scholarships up to HRK 4,000.00 per month and tax deductible
non-taxable part of the scholarship up to HRK 1,600.00 per
month are mutually exclusive,
scholarships to students for full-time education at two-year
post-secondary and higher schools and universities, as well as
to postgraduate and postdoctoral students, for which the funds have been earmarked in the Budget of the Republic of Croatia and scholarships funded from the EU budget, arranged by
special international agreements, which are assigned to regular
education students at higher education institutions,
scholarships awarded to students who were selected on the
public tenders which are open to all students on equal terms for
regular education at institutions of higher education paid by
endowments, foundations and other institutions registered in
Republic of Croatia for educational and learning purposes or for
scientific research purposes that act in accordance with special
regulations, and that have been established with the purpose of
scholarship,
Scholarships paid to amateur athletes pursuant to special regulations for the improvement of their sport skills
PRIZES AND FEES FOR SPORTS ACHIEVEMENTS
Awards for sports achievements according to special regulations
Fees to amateur athletes according to special regulations
AWARDS AND RECEIPTS TO PUPILS AND STUDENTS
Rewards to pupils and students during practical work and
apprenticeship
Rewards to pupils and students won in competitions within the
educational system and in organized school and university competitions,
Receipts of pupils and students in full-time education for work
via pupils’ and students’ associations up
up to HRK 1,600.00 (exceptionally up to
up to HRK 4,000.00) per
month
amount of scholarship up to
the amount of the actual cost
of schooling
amount of scholarship up to
the amount of the actual cost
of schooling
amount of award
to HRK 50,000.00 per year,
TAXABLE BASE
Taxable base of a resident
The total amount of income that the taxable person obtains inland and abroad – income from employment + income from independent personal activities (income
from small business, self-employment and activities equivalent thereto, income from
independent professional activities and income from agriculture and forestry) + income from property and property rights + income from capital + income from insurance + other income – personal allowances.
234
Taxable base of a nonresident
The total amount of income that the taxable person obtains in Republic of Croatia
– income from employment + income from independent personal activities (income
from small business, self-employment and activities equivalent thereto, income from
independent professional activities and income from agriculture and forestry) + income from property and property rights + income from capital + income from insurance + other income) – personal allowance.
i
Income from independent personal activities (income from small business, self-employment and activities equivalent thereto, income from independent professional
activities and income from agriculture and forestry) acquired by a resident in Croatia
and abroad shall be reduced by:
1. the amount of salaries and wages of the newly employed persons,
2. the amount of state grants for education and training and for apprenticeship training for trades and crafts pursuant to the Act on State Aid for Education and Training, and special regulations adopted on the basis of this law,
3. the amount of expenses for research and development, and
4. the loss carried after deduction of Items 1, 2 and 3, and that is performed by a
resident in Croatia and abroad, while a nonresident abroad.
ANNUAL TAX BASE OF A RESIDENT
INCOME FROM EMPLOYMENT
Income from employment is the difference between the receipts that have been
achieved in the tax period (as a rule, in a calendar year) and the expenditure incurred
in the same period.
INCOME FROM EMPLOYMENT = Receipts from employment (wages, salaries
and pensions) – Paid employee contributions for obligatory insurance (20%
compulsory contributions for retirement insurance based on pay-as-you-go system, or
15% for compulsory contributions for retirement insurance based on pay-as-you-go
system and 5% contributions for retirement insurance based on fully-funded savings)
INCOME FROM EMPLOYMENT = Receipts from employment (wages, salaries
and pensions) – Paid additional contributions for health insurance in retirement (calculated on the total monthly earning at a rate of 3% if pensions are higher
than the average net salary, for 2016 up to HRK 5,693.00)
RECEIPTS FROM EMPLOYMENT:
I. Wages and salaries
1. Any remuneration in cash or in kind paid or given by an employer to an employee29 on account of employment pursuant to the regulations governing
employment, including:
1.1 Wage or salary paid by an employer to employees on account of the
present work, or previous work on account of a previous employment or
a future work on account of the present employment, on the basis of the
present working relationship,
29
Workers are also officials, employees and other persons who are employed, according to the
regulations governing the employment relationship.
235
i
2.
3.
4.
5.
Salaries are also considered to be all receipts in cash or in kind as undertaking flowing
in consideration of past employment, regardless of the current status of the person
(pensioner or any other status), in the case of pay for work performed during employment, as well as other payments to which the employee was entitled to at the time
of that employment relationship (Christmas bonus and non-taxable benefits, grants,
awards and other receipts exceeding the prescribed amount). Salary on the basis of
past employment shall be considered to be favorable interest rates when arranging
loans (the difference between the contracted rate and the lower rate of interest of 3%
per year, except for interest on loans which are provided or subsidized by the budget,
but not to civil servants) if the loan with favorable interest was contracted and used
during the employment relationship.
1.2 Receipts on account of compensations, grants, rewards, etc., paid or
given to employees in excess of the prescribed amounts (see page 218),
1.3 Wage or salary paid to an employee by some other person instead of the
employer,
1.4 Insurance premiums that employers pay for their workers on the basis of
a life insurance policy, supplementary, additional and private health insurance and insurance of their property,
1.5 Premiums for voluntary pension insurance above HRK 6.000,00 per year
that the employer pays in favor of his workers, with their consent, to
domestic voluntary pension fund which is registered in accordance with
the rules governing voluntary pension insurance,
1.6 Any other receipts paid or given to an employee for a work done based
on a work contract or another document regulating the employment,
Entrepreneurial salary recognized as expenditure for the purpose of corporate
income (profit) tax assessment,
Receipts (salaries) of natural persons sent by foreign employers to the Republic of Croatia to work in domestic companies,
Receipts (salaries) of the members of representative and executive government bodies and units of local and regional self-government, paid for their
work in these bodies and units,
Salary compensations paid to the persons who provide care and assistance for
the I. category disabled Homeland War veterans pursuant to a special regulation
II. Pensions
1. Pensions acquired based on previously paid compulsory pension insurance
contributions,
2. Pensions paid out by insurers (pension insurance companies and other insured sum payers) based on contributions previously paid by employers for
the purchase supplementary part of pensions, provided that these contributions were tax-exempt,
3. Pensions paid out by insurers at the time of retirement based on contributions
previously paid by employers for the purchase supplementary part of pensions, provided that these contributions were tax-exempt,
236
4. Pensions paid out to entrepreneurs who were self-employed, entrepreneurs
who were subject to corporate income (profit) tax and to other persons based
on previously paid compulsory insurance contributions which were recognized as expenses or expenditures for taxation purposes,
5. Pensions of residents earned abroad (if not stated otherwise by international
agreements),
6. Family pensions, except for family pensions that children receive after the
death of their parents and family pensions of the family members of killed,
captured or missing Homeland War veterans.
i
Remuneration in nature are deemed to be the use of buildings, transport equipment,
more favorable interest when approving loans and other benefits that employers and
payers of income i.e. salaries, give to workers and individuals that receive income
from salaries and pensions, and assigning or optional purchase of personal shares to
workers at more favorable terms. Renumeration based on interest that is more favorable is considered to be the difference between the contracted lower rate and the
interest rate of 3% per year, other than interests on loans which are given or subsidized from the budget, but not to the workers of the administration.
RECEIPTS NOT DEEMED RECEIPTS FROM EMPLOYMENT:
R
eceipts provided by employers and payers of receipts, wages or salaries to
employees for the purpose of carrying out the activities of these employers
and payers shall not be deemed receipts from employment, as follows:
1. Decoration and equipping of business premises, recreation area and canteens,
2. Special working clothes bearing the title or logo of the employer or payer
of the receipts, wages or salaries
3. Compulsory medical examinations pursuant to special regulations,
4. Comprehensive medical checkups, provided they are available to all employees,
5. Education and training connected with the activities of the employers
6. membership fees on the basis of membership in professional chambers
that are, according to special regulations, mandatory for workers when
performing certain tasks for employer and income payer, i.e. salaries.
The following amounts paid by the Croatian Pension Insurance Institute shall
not be deemed receipts from employment:
1. compensation for salary to Croatian Homeland War veterans according to
a special law as of the day of the entitlement to professional rehabilitation, in the course of professional rehabilitation and during the period
between the end of professional rehabilitation and employment, up to
maximum 12 months following the end of professional rehabilitation
2. Means-tested pension supplement earmarked in the government budget
or budgets of units of local and regional self-government
3. Compensation for physical impairment,
237
4. Allowance for care and assistance provided by another person,
5. Salary compensation of a disabled worker who is entitled to occupational
rehabilitation, paid after the commencement of disability for a period not
longer than 24 months following the termination of the occupational rehabilitation,
6. Pension supplement paid pursuant to the Act on Pension Supplement to the
pensions earned pursuant to the Act on Pension Insurance belonging to the
beneficiary of the pension for the period ending on 31 December 2011.
i
If an employer and payer of income, i.e. salaries and pensions, pays out to employees
and natural persons, and pensioners’ salary or pension according to a court verdict,
prescribed penalties paid on this basis are not considered to be a receipt from paid
employment and are not subject to taxation.
+
INCOME FROM INDEPENDENT ACTIVITIES
Income from independent activities (the income from small business, selfemployment and activities equivalent thereto, income from independent
professional activities and income from agriculture and forestry):
+ Business receipts incurred during the taxable period
– Business expenditure incurred during the taxable period
Income taxpayers who perform independent activity are include in the taxable base
income on the basis of state aid, incentives and grants for the purchase of fixed assets, and that in the amounts of recorder expenditures incurred on the basis of depreciation and fixed assets
i Business expenses shall also be premiums paid for voluntary pension insurance that
the taxpayer who acquires income from independent personal activities pays for himself or in favor of his workers, with their consent, to domestic voluntary pension fund
which is registered in accordance with the rules governing voluntary pension insurance, up to HRK 500.00 for each month of the tax period, i.e. up to HRK 6,000.00
per year
i
− The amount of wages and salaries of the newly employed persons
− State support for education and further training
− The amount of state grants for education and training and for apprentice-ship training for trades and crafts pursuant to special regulations
− The amount of expenses for research and development
− The loss carried forward in Croatia (up to 5 years).
i
Income from independent personal activities:
1. Income from small business (crafts and trades), self-employment and activities
equivalent to small business
1.1 activities in terms of the Small Business Act and other business activities not
separately stated,
238
1.2 the cession for a fee or final sale of property rights within a small business or
a independent professional activity,
2. Income from independent professional activities. Independent professional activities are deemed to be:
2.1 the independent professional activities of healthcare workers, veterinarians,
lawyers, notaries public, auditors, engineers, architects, tax counsellors, bankruptcy estate managers, interpreters, translators, tourist workers and other
similar activities,
2.2 the independent professional activities of scientists, authors, inventors and
other similar activities,
2.3 independent professional lecturing activity, educational activity and other similar activities,
2.4 independent professional activity of journalists, artists and athletes,
3. Income from agriculture and forestry
i Activities in agriculture and forestry shall include the utilization of natural resources
and the sale or exchange of products obtained from these activities in an unprocessed state. Natural persons involved in agricultural and forestry activities shall be
subject to income tax payment if their annual revenues in the tax period exceed HRK
80,500.00, also liable to value-added tax and if they receive incentives as determined
by conditions prescribed in special legislation).
Annual lump sum income and income tax from independent activity
of trade and agriculture and forestry:
Taxpayers whose annual self-employment income is taxed at a flat rate may be
physical persons receiving income from self-employment and physical persons
receiving income from agriculture and forestry, and meet the following requirements:
1. Annual income from self-employment in the previous calendar year does
not exceed HRK 149,500.00 and from agriculture and forestry is not
greater than HRK 80,500.00,
2. They are not taxpayers under the Value Added Tax Act,
3. They are not simultaneously engaged in an activity from which income is
determined on the basis of business books,
4. Are not self-employed in hospitality and/or trade,
5. They do not have separate business units, or production facilities.
If the sale of the own products of natural persons that are registered for performing
the activities of the production is not considered trade.
i Performing activities of hospitality is not considered to be an activity of natural persons who are registered for provision of services in a rural household.
i
239
Natural persons jointly engaged in an activity which is taxed at a flat rate can
on that basis determine income at a flat rate if each of the co-entrepreneurs
fulfills all the previously listed conditions prescribed under Items 2, 3, 4 and 5,
and if the total receipt of mutual self-employment in trade in the previous
calendar year does not exceed HRK 149,500.00, and receipt from self-employment of agriculture and forestry does not exceed HRK 80,500.00. Coentrepreneurs are required to appoint a holder of joint activity that is responsible for carrying out the prescribed obligations arising from joint activity.
With family farms (OPGs), registered in the Farm Register, a holder is considered a natural person who is registered as the holder in the Farm Register.
i
A taxpayer performing an independent activity and realizes income on the basis of
business books transitioning to determining a flat-rate income shall submit an application to the competent Tax Administration by the end of the current year for the
following year, but not later than 15 days after the end of the calendar year. The application is submitted alongside a review of receipts and expenditure according to the
data from the Book of receipts and expenses (KPI form) and an overview of the total
amount of claims on the basis of issued invoices from the Records of claims and obligations (TO form) for the calendar year preceding the year of transition to the determination of income in a lump-sum amount.
+
INCOME FROM PROPERTY RENTALS AND PROPERTY RIGHTS
Income from property and property rights
1. a) Income from property on the basis of rental or lease of movables and
immovable (receipts incurred during the taxable period from rentals and leases
diminished by the expenses to the amount of 30% of the realized rental or lease)
or
1. b) Income from property rights (difference between the receipts from a timelimited cession of copyright, the rights of industrial property and other property rights incurred during the taxable period and the expenses incurred in the
tax period in connection with these receipts)
2.
Income from renting of flats, rooms and beds to travelers and tourists
and from organizing campsites
2. a) annual presumptive income tax is determined by a decision of the tax administration
or
2. b) Income from property rights (difference between the receipts from a timelimited cession of copyright, the rights of industrial property and other property rights incurred during the taxable period and the expenses incurred in the
tax period in connection with these receipts)
3.
Income from property rights = receipts realized – really incurred expenditures for which the taxpayer owns accurate and reliable documents (expenditures are recognized in the annual tax report)
240
4.
Income from alienation
4. a) Income from alienation (sale, replacement or other transfer) of real
estate and property rights if the real estate or property right is alienated 3 years after its procurement = difference between the receipts determined at market value of the real estate or property right alienated, and the
procurement value increased by a rise in producer prices of industrial products
(alienation cost is recognized in the annual tax report)
4. b) Income from alienation (sale, replacement or other transfer) of more than
3 real estate and more than 3 property rights if the same is alienated
in the period of 5 years = difference between the receipts determined at
market value of the real estate or property right alienated in the period of
5 years, and the procurement value increased by a rise in producer prices of
industrial products (alienation cost is recognized in the annual tax report)
If the property is alienated on the basis of the provisions of a special law, the tax on
income from property on the basis of alienation of real estate is not paid, as well as
when one alienates land with individual size (each individual part) is up to 250 m2,
and the total area of all alienated land parts of the individual parts that are up to 250
m2 does not exceed 1000 m2.
i In the case of alienation of real estate that was built on one’s own accord, the purchase value consists of the actual expenditure, i.e. the price of the construction according to the authentic documentation. If there are no documents about the obtainment, the purchase value is determined by evaluating and adjusting the growth
of production prices from the moment the expenditure based on receipt of alienation
of such real estate was created. If only one apartment, one commercial property or
another part of the real estate is alienated, then expenditure is deemed to be only
proportional part of the total cost of the construction of such real estate.
i
5.
Income from alienation of specific types of assets (waste)
5.a) Income from alienation of specific types of assets (waste) = receipts from alienation realized or estimated by the Tax Authority (expenditures are not recognized)
or
5. b) Income from alienation of special types of property (waste) that is determined based on data from the prescribed business books (as with
independent activities) = difference between receipts and expenditures
i
Act on Sustainable Waste Management prescribes what is deemed to be waste and
the management of the same. In terms of tax regulations, return packaging and
packaging collected within the framework of organized actions and activities for environment protection are not deemed to be waste.
+
INCOME FROM CAPITAL
Income from capital:
1. receipts from dividends and profit sharing on the basis of equity participation
241
i
Capital income shall not be established based on receipts from dividends and corporate income (profit) shares if
a) those receipts arise from the Employee Stock Ownership Plan (ESOP)
b) those receipts realized from the investment of the Fund for Croatian Homeland
War Veterans and Members of Their Families, and it is intended to divide the same
to the members of the aforementioned Fund, i.e. if the same are realized from financial assets assigned in accordance with the regulations governing the rights of
Croatian Homeland War Veterans and Members of Their Families, as well as the
disposal of shares which were at no charge assigned to Croatian Disabled Homeland War Veterans and family members of a deceased, captured or missing Croatian Homeland War Veteran,
c) dividends and corporate income (profit) have been used for the purpose of increasing the company’s registered capital.
Income tax is not paid for payment of dividend and share profit if the same
are paid from profit generated from 29 February 2012, other than dividends
and share profit based on equity share that were realized in the period from
1 January 2001 to 31 December 2004.
2. Receipts from shares in corporate income (profit) of members of the
board of management and employees of corporations that are obtained via allocations of personal shares or the share purchase options
i
The assignment or optional purchase of personal shares to the workers at more favorable terms is deemed to be profit in nature of these workers from which the income from paid employment is determined.
3. Receipts acquired by natural persons from the withdrawal of assets
and the use of services
a) Proceeds from withdrawals of assets and using the services of the members
of companies and individuals who are income tax payers engaged in an crafts,
independent professions and agriculture and forestry (income is the market
value of exempted goods and services, with VAT included, plus tax and surtax), and
b) the payment of dividends or shares in income if at the end of the year for
which the advance was paid, but no later than the filing of income tax returns, it is found that the profit is not sufficient to cover such an advance
The most common forms of exemption:
a) providing certain benefits to the shareholder and member of the company
for a fee lower than the market, including lower interest
b) payment to the shareholder and member of the company higher fees than
the value of goods, services, effects or benefits that the company received
from a shareholder or member of society
242
c) provision of goods or services to a shareholder or member of the company
in a value worth more than the value of goods, services, effects or benefits
which the shareholder or member of the society have to the society
d) facilitating to the shareholder and members of the company other benefits for which there is no legal basis
4. Receipts of interest, in particular:
a) receipts from interest on domestic and foreign currency savings (deposits,
fixed term or rent savings, including offering, reward, premium and any other
compensation earned over the amount of resources invested)
b) proceeds from interest on securities,
c) receipts from interest on loans,
d) receipts generated based on sharing the revenue of an investment fund in the
form of interest if they are not taxed as profit shares on the basis of profitsharing or income of the investment fund.
Income tax is not paid on:
a) penalty charges
b) interest charged by court rulings and decisions of local and district (regional)
governments,
c) interest on a positive balance at a gyro, current and foreign currency account
that are generated by banks, savings banks and other financial institutions for
deposits, mostly in the amount these payers pay for these deposits,
i
This exemption applies if the interest rate for deposits is less than the minimum interest rate for time deposits, or if it is a maximum of 0.5% per year. The lowest interest
rates for term deposits does not apply to dedicated time deposits that are used for
securing bank claims.
d) interest earned by investing in bonds, regardless of the issuer and the type of
bond,
e) receipts on the basis of return on life insurance with the markings of savings
(paid compensation over the paid insurance premiums) and the yield on the
basis of voluntary pension insurance
i
Income tax is payable on interest paid or attributed as from 1 January 2015. Interest
accrued up to 31 December 2014 are not taxed, regardless of when they are paid or
attributed.
NOTE: The penalty interest to be paid on the basis of salaries or pensions under
a court judgment are not considered to be employment income and are not subject to taxation, but if the interest is paid on the basis of payments or pensions
without a court judgment or on the basis of court settlements, then they are
considered employment income.
243
5. Capital gains that have been achieved within three years by acquisition
and alienation of financial instruments and structured products (applied
from 1 January 2016)
Income arising from capital gains is the difference between the agreed sale price,
or the receipt determined in accordance with the market value of financial instruments and structured products that are being alienated, and the buying cost.
Receipts are considered inflows from disposals of financial instruments and structured products (assets), i.e. receipts from:
a) transferable securities and structured products, including shares in the capital of
companies and other types of association whose manner of disposal of shares is
comparable to such societies,
b) money market instruments,
c) units in collective investment undertakings,
d) derivatives,
e) a proportional part of the liquidation estate in the event of liquidation of an investment fund and other revenues generated by the ownership shares in the event of
liquidation, termination or withdrawal
i Alienation of financial assets is considered to be sales, exchange, donation and other
transfer.
i
Alienation of financial assets does not include:
a) the transfer of shares from one to another voluntary pension fund,
b) replacement of securities with the same kind of securities of the same issuer,
while not changing the relations between members and the capital of the issuer, as well as the replacement of securities or other financial instruments or
other securities or financial instruments, and the acquisition of securities or
financial instruments in case of status changes, in which there is no cash flow,
providing the sequence of acquisition of financial assets is secured,
c) the distribution of shares of the same issuer, whereby there is no change in
the share capital or cash flow,
d) replacing the share between investment sub-funds within the same umbrella
fund, or replacement of shares between investment funds managed by the
same management company, provided that the sequence of acquisition of
financial assets is secured,
e) redemption of shares in the Fund for Croatian Homeland War Veterans and
their families.
In the case of disposal of financial assets referred to in items b) and d), the purchase
value shall be the value determined at the date of the first acquisition of financial assets.
Income from capital based on receipts generated from units in collective investment subjects shall be determined by the amount of actual or realized
returns reduced by investment management costs, i.e., the costs of managing
the assets of an investment fund (net yield30), and with discount securities and
30
In determining the net yield exempt receipts from dividends or shares in profits or receipts of interest, on the basis of which income tax has already been paid and receipts from interest on
bonds, other than interest on bonds that are generated on the basis of an investment company
for an account portfolio collectively for the accounts of all customers (individuals and companies).
244
bonds without coupons with the value of the difference between the redemption value at issuance and the realized value at maturity if the redeemer
has the security until its maturity.
Income from capital based on capital gains that have been achieved by investing in portfolios of financial assets, in accordance with a regulation governing
the capital market, is determined at the time of realization of the yield from
the portfolio minus the cost of portfolio management (net return).
If the financial assets were acquired by donation and alienated within three
years from the date of purchase, income from capital as the difference between the agreed sale price, or the receipt of the market value of financial
assets that are alienated and purchase cost is established to the alienator. In
the case of the assets by donation, the day of acquisition of financial assets is
considered to be the day of acquisition of the giver, and purchase value is the
market value at the time of purchase.
Income from equity based on capital gains is not taxed if the alienation is effected
between spouses and relatives in the first line and other immediate family members,
between divorced spouses if the alienation is directly related to divorce, inheritance
and financial assets and in case the investment is disposed of after three years from
the date of purchase, or acquisition of such property. If financial assets are subsequently disposed of, that are acquired in alienation between spouses and relatives in
the first line, and other family members, and/or alienation between divorced spouses
that is directly related to his divorce and/or alienation that is directly related to inheritance, on the basis of capital gains, which is then determined by investment income,
during which the date of acquisition of financial assets is considered the day of the
initial acquisition, when an exemption from taxation is applied.
i Capital losses may only be deducted from income from capital gains realized in the
same calendar year and up to the amount of the tax base. Capital losses that could
reduce income from capital gains in the same tax period shall be recognized only if
they are derived from the financial assets acquired from 1 January 2016 and if they
are realized within 3 years from the purchase or acquisition of financial assets that are
alienated.
i
+
INCOME FROM INSURANCE
Income from insurance =
Receipts in the amount of paid and tax allowed life and voluntary retirement insurance premiums
Income from insurance shall be also deemed the receipts in the amount of paid in
voluntary pension insurance premiums which were exempt from taxation and were
tax deductible expense or expenditure for the employer or for the taxpayer trader or
self-employed person.
i In the event of purchase of life and voluntary retirement insurance or the cessation of
the insurance, the amount of the receipt is considered a receipt if it is less than the
insurance premiums paid.
i
245
+
OTHER INCOME
Other income = receipts – expenses
Other income is determined based on receipts that are not considered receipts:
1. Income from employment.
2. Income from independent personal activities,
3. Income from property and property rights,
4. Income from capital
5. Income from insurance
Receipts that are in particular deemed as other income:
Receipts of the members of representative or executive government bodies
and units of local and regional self-government for their work in these bodies
and units who do not have status of employees and who are not on insured
on that basis,
Receipts arising from the work of members of the meetings and supervisory
boards of companies, governing councils and other corresponding bodies of
other legal entities, members of commissions and committees established by
these bodies who do not have status of employees and who are not on insured on that basis,
Receipts arising from the work of judge-jurors who do not have status of
court employees (who are not on insured on that basis),
Royalties paid pursuant to a special act governing copyright and related rights
(not deemed as salary or income from individual activities),
Receipts defined as the difference between the value of the property and
funds for its acquisition.
i
If the Tax Administration, based on the data collected and their comparison, determines that the sources of acquisition of assets of natural persons are not proven, it
shall determine the income as the difference between the value of assets and the
proven amount of funds for its acquisition.
Proceeds from athletes (are not a salary nor proceeds from independent professions)
Receipts for activities outside employments by salesmen, agents, sales agents,
referees and delegates, interpreters, translators, tourist industry workers, consultants, court experts, seasonal workers in agriculture, and other similar activities, and taxpayers are not insured on the basis of the performance of these
activities and income from these activities is not determined as the difference
between receipts and expenditures on the basis of data from business books,
Receipts in kind outside employment (use of buildings, transport equipment,
favorable interest rates in loans and other benefits)
Rewards to pupils and students during practical work and apprenticeship over
HRK 1,600.00 monthly,
246
Scholarships to pupils and students in full-time education at secondary, twoyear post-secondary and higher schools and universities, over HRK 1,600.00
monthly,
i
Exceptionally, non-taxable receipts are deemed to be scholarships that are assigned on
public tenders to students at Croatian universities in the amount over HRK 4,000.00 per
month for excellent achievements in knowledge and grades at universities.
Receipts of pupils and students in full-time education for work via pupils’ and
students’ associations up to HRK 50,000 per year, according to special regulations
Scholarships paid to amateur athletes pursuant to special regulations for the
improvement of their sport skills, above HRK 1,600.00 monthly,
Fees over HRK 1,600.00 per month that are awarded to amateur athletes according to special regulations,
Prizes over HRK 20,000.00 per year for sports achievements that are awarded
according to special regulations,
Other special unlisted receipts that are paid or provided to individuals by legal
and physical entities (profit tax payers and income tax payers who perform
independent activities) and other payers and providers, and are not receipts
which are considered income or receipts on which income tax is not paid and
are not considered receipts from employment, self-employment, property and
property rights, capital and insurance.
i
Return of contributions shall be considered receipt from other income, but is not included in the annual tax base and on this basis, an annual tax return cannot be filed.
Expenditures for other income = Paid compulsory contributions from receipts
In determining other income, expenses are, if they are charged and paid according to
special regulations, recognized in the amount of 30% of receipts to individuals on the
basis of:
a) the royalties paid under a special law governing copyright and related rights including compensation for delivered artwork persons engaged in artistic and cultural activities,
b) professional activities of journalists, artists and athletes who are insured on that
basis and mandatory insurance contributions paid by the decision, and
c) receipts from non-residents for performing artistic, entertainment, sports, literary
and artistic activities, and activities in connection with the press, radio and television, and entertainment events.
i There is no obligation towards receipts from which the other income is determined
according to the following types of income:
a) compensation for delivered copyright and/or related rights,
b) compensation for a delivered work of art,
c) Award for student work, and reward to regular student during practical work and
apprenticeship,
i
247
d) receipt for the work of students, and students through an intermediary in the employment of students and full-time students,
e) scholarship to a pupil or student,
f) sports scholarships
g) support for the family in case of death of workers,
h) support for the education of children of former workers or killed Homeland War
Veterans up to 15 years of age, or until the completion of her education,
i) fixed monthly prize that is paid to a member of the Croatian Academy of Arts and
Sciences, according to a special regulation,
j) compensation to a sports referee and delegate,
k) financial assistance and assistance in kind which are, pursuant to the provisions of
its general acts, paid or given by a municipality, city, county and the City of Zagreb
for the protection of maternity, parental care of a newborn child, raising and educating a child, which are intended for a parent or another person who takes care
of the child, according to a special regulation,
l) receipt for work of a person younger than 15,
m) rent paid by a former employer by a court ruling to a family member of an employee,
n) financial compensation, which the body that ordered the mobilization pays to the
mobilized but unemployed citizen, according to a special regulation, and
o) the receipt of which the other income paid to pensioners is determined ,
p) the receipt which is measured as the difference between the value of assets
and the amount of funds for its acquisition.
+
INCOME ACQUIRED ABROAD (foreign income)
The income tax of the resident paid abroad, which is subject to taxation in Croatia
according to the national legislation, shall be credited against the domestic income
tax if not provided otherwise in the agreements for the avoidance of double taxation
or multi-lateral agreements and treaties. Tax paid abroad may be credited only if it
corresponds to domestic income tax and up to the amount of the assessed domestic
tax on income earned abroad.
––
– The loss carried forward in Croatia (up to 5 years).
– The amount of wages and salaries of the newly employed persons
– The amount of state grants for education, training, and amount of de
minimis for apprenticeship training for trades and crafts pursuant to special regulations
– The amount of expenses for research and development
=
TOTAL INCOME
––
248
PERSONAL ALLOWANCE (non-taxable part of the income)
PERSONAL ALLOWANCES (factors FacOUT OF AN AREA OF
1. AREA OF SPECIAL
2. THE GROUP OF AREA
of the personal allowances are
tor
SPECIAL NATIONAL
NATIONAL CONCERN
OD SPECIAL NATIONAL
aggregated)
CONCERN AND THE CITY
AND THE CITY OF
CONCERN
OF VUKOVAR
VUKOVAR
Monthly Annual sum Monthly
Annual
Monthly
Annual
sum (HRK)
(HRK)
sum (HRK) sum (HRK) sum (HRK) sum (HRK)
Basic personal allowance
Personal allowance of a pensioner
1
Dependents of immediate family
and former spouse if the same
receives alimony
First child
Second child
Third child
Fourth child
Fifth child31
Taxable person and each dependent immediate family members
and each child, if they are disabled
persons
Taxable person, each dependent
member of his/her immediate
family and each child, if these
persons’ disability degree of 100%
have been determined, and/or if
they are entitled to care and
assistance provided by other
persons32
i
31,200.00
in the
amount of
the annual
pension,
from a
minimum of
31,200.00
to a maximum of
45,600.00
15,600.00
3,500.00
in the amount of the
monthly
pension, to
the maximum of
3,800.00
0.5
2,600.00
in the
amount of
the monthly
pension,
from a
minimum
of 2,600.00
to a maximum of
3.800,00
1,300.00
42,000.00
in the
amount of
the annual
pension, to
the maximum of
45,600.00
1,750.00 21,000.00
1,500.00 18,000.00
0.5
0.7
1
1.4
1.9
0.3
1,300.00
1,820.00
2,600.00
3,640.00
4,940.00
780.00
15,600.00
21,840.00
31,200.00
43,680.00
59,280.00
9,360.00
1,750.00
2,450.00
3,500.00
4,900.00
6,650.00
1,050.00
1,500.00
2,100.00
3,000.00
4,200.00
5,700.00
900.00
1
2,600.00
31,200.00
3,500.00 42,000.00
21,000.00
29,400.00
42,000.00
58,800.00
79,800.00
12,600.00
3,000.00
in the
amount of
the monthly
pension, to
the maximum of
3,800.00
36,000.00
in the
amount of
the annual
pension, to
the maximum of
45,600.00
18,000.00
25,200.00
36,000.00
50,400.00
68,400.00
10,800.00
3,000.00 36,000.00
On the areas of special national concern and on the area of the City of Vukovar an
augmented personal allowance is allowed in the annual calculation of income tax in
the annual tax return submitted, and during the taxable period the basic personal
allowance is used as in the area out of the special national concern and the city of
Vukovar.
For every additional child, the factor of the basic personal allowance shall be increased progressively and that for 0.6, 0.7, 0.8, 0.9, 1.0 ... in relation to the factor of the basic personal
allowance for the previous child.
32
In such cases, the taxpayer cannot use personal allowance based on disability (factor 0.3), for
himself/herself nor for a dependent person.
31
249
Children are considered the children who are supported by their parents, guardians,
adoptive parents, stepfathers or stepmothers, as well as the children who have finished full-time education and have not yet taken up their first employment, provided
that they are registered with the Croatian Employment Agency.
i Disabled persons are natural persons – a taxable person and/or dependent members of
his/her immediate family and dependent children, whose disability or physical impairment has been determined by decisions pursuant to the regulations governing pension
insurance, the protection of disabled war veterans and disabled war civilians, social
welfare, education and personality development, or pursuant to other regulations.
i
Dependent members of the immediate family and dependent children are natural persons whose taxable receipts, the receipts which are not subject to taxation
and other receipts not deemed income do not exceed HRK 13,000.00 on the
annual basis. Exceptionally, for the purpose of determining the entitlement to
the personal allowance in respect of dependent members of the immediate family and children, the receipts pursuant to special regulations on the basis of
welfare benefit, child benefit, monetary receipts for a layette, support for a newborn child and family pensions paid out to orphans, the receipts that in their
nature represent only the support by parents or members of the immediate
family, the receipts that represent the compensation of the real costs incurred,
such as compensation for transportation by public transport to and from work
and reimbursement for official travel, shall not be taken into account. Dependent members of the immediate family are a married and common-law spouse or
life partner and informal life partner of the taxpayer, the taxpayer’s parents and
the parents of his marital and common-law spouse or life partner and non-life
partner, ancestors and descendants in direct line, stepmothers and stepfathers
who are supported by the adult stepchild, formerly married and common-law
partners or life partners and informal life partners for which the taxpayer pays
maintenance and adults to whom the taxpayer is appointed as custodian.
Notes:
1. A personal exemption may be increased resident natural person during
annual calculation of income tax:
a) for increased personal allowance in assisted areas and areas of Vukovar
The personal allowance for dependents of immediate family and children is determined by the increased basic personal allowance only if members of the immediate
family and children have a residence and reside in assisted areas and areas of Vukovar.
b) for the amount paid for health insurance, if the taxpayer is not otherwise
provided, to the extent provided for under the compulsory health insurance
contributions,
c) for the donation in the country in kind and money that are credited to the bank
account to associations and other persons that perform such activities in accordance with special regulations, and for cultural, educational, scientific, medical, humanitarian, sport and religious purposes, to the amount of 2% of the
250
receipts for which in the previous year a annual tax return was filed and the
annual income tax was determined. Personal allowance may be increased for
gifts above the prescribed value, provided they are given according to decisions
of competent ministries on the implementation and financing special programs
and activities, but not for the regular activities of the gift recipient
Gifts may also include donations of manufacturers and food traders that, in order to
prevent the destruction of large quantities of food and environmental protection,
donate food to above-mentioned persons for social, humanitarian and other help
purposes, as well as people affected by natural disasters, provided that these gifts are
made in accordance with special regulations of the Ministry of Agriculture.
2. A personal allowance may be increased to non-resident natural person
during annual calculation of income tax (on the basis of the annual tax return) as well as a resident under Items 1 b) and 1 c)
3. A non-resident natural person who is a resident of another Member
State of the European Union or the European Economic Area, who in the
Republic of Croatia derives income may, at the annual calculation of income tax (on the basis of the filed annual tax return), use the increased personal allowance, as well as a resident under Item 1, only if authentic
documents prove that the income produced in the Republic of Croatia
constitutes at least 90% of the total (world) income realized in the tax
period (previous calendar year) and that the tax is exempt or tax-free in
the Member State of which he is a resident.
The above-mentioned increase of the personal allowance cannot be used per
month during the tax period for the payment of advances, but only in the
annual calculation of tax based on the annual return submitted.
=
TAXABLE BASE
TAX RATES
Monthly tax base
up to HRK 2,200.00
from 2,200.00 to 13,200.00
(on next HRK 11,000.00)
above HRK 13,200.00
i
Annual tax base
Rate
up to HRK 26,400.00
more than HRK 26,400.00 up to HRK 158,400.00
(on next HRK 132,000.00)
above HRK 158,400.00
12%
25%
40%
Domestic payer of income from which the income to non-residents is determined
who are residents of countries with which the Republic of Croatia applies the agreements on the avoidance of double taxation is obliged at the time of payment to calculate, suspend and pay income tax in the manner determined by such agreements
and domestic law. Table of tax rates according to the agreements on the avoidance
of double taxation is shown on page 22.
251
ASSESSMENT AND PAYMENT OF ADVANCE PAYMENTS OF INCOME TAX
1. Assessment of advance payment of income tax on income from employment
Taxpayer
Employee
Taxable base
+ the amount of all
receipts from
employment obtained during a
Employee in a foreign ormonth
ganization that has not – the contributions
diplomatic immunity in for obligatory
insurance paid in
– the monthly personal allowance
Employee in a foreign diplomatic mission or consular office, or a interna- + the amount of all
tional organization or a
receipts from
representative office or
employment obtaorganization that has diined during a
plomatic immunity in the
month
Republic of Croatia (if he/ – the contributions
she is also a taxable perfor obligatory
son pursuant to the Inco- insurance paid in
me Tax Act)
– the monthly persoEmployee who receives nal allowance
wage or salary directly
from abroad
Who is liable to
Deadline for the
calculate,
advance
withhold and pay
payment
in the tax
Tax rate
Employer33
Foreign organization that
has not got
diplomatic
immunity in
the Republic of
Croatia
at the time of
every payment
and at the
same time as
the payment
of the pay
8 days from
taxable person
the day of
(employee)34
payment
8 days from
taxable person
the day of
(employee)35
payment
12%, 25%,
40%
(depending
on the amount of the
taxable base)
12%, 25%,
40%
(depending
taxable base)
12%, 25%,
40%
(depending
taxable base)
1. Exceptionally, the employer of a resident crewmember of a ship in international seaborne
traffic shall not have during the year, the obligation of calculating, withholding or paying
advance income tax from a salary which is paid to the resident crew member of a ship in
international sea-borne traffic The taxpayer resident crew member of a ship in international
seaborne traffic shall also not have the obligation of calculating and paying advance income
tax from the salary.
2. Employer of the sent worker is not obliged to pay advance payments of income tax in the
country if based on this receipt, according to provisions of the agreement on avoiding double
taxation, they pay the advance income tax abroad, but they must inform the Tax Administration. The same applies to income of residents made in the role of an MEP.
34
The employing diplomatic or consular mission of a foreign state, an international organization
or agency or organization in the territory of the Republic of Croatia that has diplomatic immunity may, in the name and on behalf of their workers, take over the obligation to calculate,
withhold and pay the advance income tax. In this case, the obligation to pay tax occurs simultaneously with the payment of salaries.
35
The Worker taxpayer is not obliged to pay advance income tax in the country if, on the provisions of the agreement on avoiding double taxation based on that receipt, they pay income tax
paid abroad, but they must inform the Tax Administration. In the annual accounts, based on
the annual tax return, taxes paid abroad shall be included in the domestic income tax (if agreements on avoidance of double taxation or multilateral intergovernmental treaties and agreements do not otherwise specify).
33
252
Taxpayer
The worker recipient of
salary in objects, rights
and services which have
a monetary value (receipts in kind – the use of
buildings,
transport
equipment, more favorable interest when approving loans and other benefits)
Taxable base
+ total monthly
receipts in kind
-the contributions
for obligatory insurance paid in
-the monthly personal allowance
Who is liable to
Deadline for the
calculate,
advance
withhold and pay
payment
in the tax
employee
+ total monthly
receipts in kind
from pension
Retiree under the Croati- – Additional Health the paying
insurance contribu- agency
an pension regulations
tions36
– the monthly personal allowance
Retiree who receives a
+ total monthly
pension directly from
receipts in kind
abroad (according to infrom pension
ternational treaties the
-– the monthly perRepublic of Croatia has
sonal allowance
the right to tax)
Tax rate
up to the last
working day
of the month
in which the
income was
made
at the time of
every payment
and at the
same time as
the payment
of the pension37
Within 8 days
from the day 12%, 25%,
pensioner
of payment of 40%
(depending
pension
on the amoor
unt of the
the tax admi- by the end of taxable base)
the month for
nistration for
the current
pensioners
month. If the
that was
issued a decisi- monthly advance is up to
on on the
HRK 100.00
payment of
then until the
the monthly
last day of the
advances of
quarter
income tax
Note:
1. Disabled Homeland war veterans are relieved from paying tax on income from
employment and pensions in proportion to the established degree of disability (if
the degree of disability is 80%, 20% of the calculated tax is to be paid),
2. Members of the family of a killed, captured or missing Croatian Homeland War
veteran shall not pay income tax on their family pensions or cash compensations
to the amount of the family pensions realized pursuant to the Act on the Rights
of Croatian Homeland War Veterans and the Members of Their Families.
It is calculated on the total monthly income at a rate of 3% if the pension is higher than the
average net salary (for 2016 HRK 5,693.00).
37
Exceptionally, the Croatian Pension Insurance Institute no later than the last day of the month
for each month.
36
253
i
Personal allowance reduces tax only in the case where the employee or retiree was
issued a tax card (PK Form) and handed over to the employer or payer of pensions.
2. Determining the advance income tax from self-employment, from 1 January 2016, the taxpayers on income from independent activities, activities equalized with a craft business, activities of and agriculture and forestry determine and
pay the monthly payment of income tax as a difference of revenues and expenditures based on information from prescribed business books on the basis of data
from the filed annual income tax returns for the previous year. Tax liability for
which the advance is determined is divided by the number of months in the same
period in which the independent activity was performed.
i
If the taxpayer in the annual tax return, along with income from self-employment
expresses income from other sources, the advance tax for the next period shall be
determined only from the tax liability arising from self-employment.
A taxpayer who starts to perform self-employment does not pay income tax advances until submission of the first annual tax return.
i
Annual presumptive income and income tax of small business activities and
independent activities of agriculture and forestry (lump sum taxation)
Quarterly income tax from self-employment and independent agriculture and forestry is paid according to the decision of the Tax Administration by the last day of
each quarter, in the amount that is the multiple of the number of months of the
quarter for which the obligations is laid down and the established monthly flat-rate
tax. The monthly flat-rate income is determined by dividing the annual flat tax on
income and multiplied by the tax rate of 12% and divided by the number of months
in the tax period (calendar year) in which the taxpayer is self-employed.
When the taxpayer during the year starts or ceases to carry out self-employment, the
annual flat tax is determined in proportion to the number of months of the activity,
and to the benefit of the taxpayer, and the income level is determined so that, from
the average receipt generated during the tax period in which the activity is performed (total receipts divided by the number of months of performing the activity),
the annual receipt is determined by multiplying the average annual receipt with
twelve (12) months. Flat-rate income tax for a registered seasonal craft is determined
in the same way. Amount of annual lump sum income:
Total income
from 0.00 – 85,000.00
from 85,000.01-115,000.00
from 115.000.01 – 149,500.00
254
Annual tax base
12,750.00
17,250.00
22,425.00
Amount of annual lump sum tax
1,530.00
2,070.00
2,691.00
3. Assessment of the advance payment of income tax on income from rentals and property rights
Type of income from
property
Taxable base
Income from rent the amount of the rental fee/lease
and lease fees
fee, or lease and rental fees obtained from the tax authorities, reduced by 30%
Who is liable to
Deadline for
Tax rate
calculate, withhold payment of the
and pay in the tax
deposit
The taxable person is obliged to
make the payment according
to a ruling from
the Tax Administration
or
Income from lea- the difference between receipts The taxable person is obliged to
se and rental fees and expenditure
make the payon the basis of
ment according
business record
to a ruling from
data
Income from pro- total fee (not reduced for perso- receipt payer
perty rights
nal allowance)
or
Income from alie- the difference of receipts and exnation of specific penses on the basis of data from
types of assets business records
(waste) on the
basis of data
from business records
i
up to the last 12%
day in the 25%
month
for 40%
the previous
month
at the same 25%
time as the
payment
The taxable per- 15 days from 25%
son is obliged to receiving the
make
the ruling
payment according to a ruling
from the Tax Administration
the difference between the receipt
determined according to the market value of the property or property rights that are being alienated and purchase value increased
for the growth of producer prices
of industrial products. costs of alienation can be deducted as expenditure (not to be reduced for
personal allowance)
Income from alie- receipts realized or estimated by receipt payer
nation of specific the Tax Authority (expenditures
types of assets are not recognized)
(waste)
Income from alienating real estate
and
property
rights
up to the last 12%
day in the
month
for
the current
month
The taxable person is obliged to
make the payment according
to a ruling from
by the end of 12%
the current
month
for
the current
month.
up to the last 12%
day in the 25%
month
for 40%
the previous
month
Annual presumptive income and income tax from renting of flats, rooms
and beds to travelers and tourists and from organizing campsites
The income and income tax of a taxable person natural person (individual) who ac-
255
quires an income from renting of flats, rooms and beds to travelers and tourists and
from organizing campsites shall be determined to a lump sum tax amount (annual
presumptive income and income tax) provided that:
1. the competent county body38 approved providing the services of renting of flats,
rooms and beds to travelers and tourists and organizing campsites according to
Hospitality and Catering Industry Act,
2. accommodation services in a flat, room or holiday house, which the lessor owns,
up to a maximum of 20 beds or accommodation services in a camp, organized on
land which the lessor owns, with the maximum of 10 accommodation units, that
is 30 guests at the same time,
3. taxable person is not subject to VAT pursuant to the Value Added Tax Act
4. taxable person does not determine income on the basis of the data from business
books and records.
i Law on hospitality catering activity prescribes that household hospitality catering activities can be provided by a natural person citizen of the Republic of Croatia, which
is not an artisan or trader, and provided that the same rents out a maximum of 16
beds and/or organizes a camp for up to 25 guests.
The annual flat-rate tax on income is determined by a decision of the tax administration as the product of the number of beds, or the number of units in the camp, the
amount of the flat tax per bed, or per unit in the camp, and the coefficient of the area
in which the service is provided.
Annual lump sum tax is paid quarterly, by the end of each quarter, and up to 1/4 of
the annual lump sum tax i.e. in proportion to the number of quarters for which the
obligation is determined.
4. Assessment of the advance payment of income tax on income from
capital
Form of income from
capital
Income from interest
Taxable base
Total income
Tax rate
12%
Who is liable to calculate,
withhold and pay in the tax
Deadline for
payment of the
deposit
Payer of interest
At the same time
as the payment
or grant of interest39
Acquirer of interest from within 8 days
abroad (without the me- from the date of
diation of a domestic payment
payer and if not otherwise
specified by an international agreement)
State Administration Office in the County, or the governing body of the city of Zagreb, which is
in charge of tourism affairs, according to the location of the headquarters of the object, or
according to the place where the services are provided.
39
If payers run the processes on a daily basis and by night processes on the principle of daily balances with a simultaneous calculation, suspension and payment of advance income tax and
surtax on income tax, the first working day following such treatment is considered.
38
256
Form of income from
capital
Tax rate
Deadline for
payment of the
deposit
Income from dividen- Total income
ds and profit sharing
on the basis of the
share in capital
12%
at the same time
as the payment
Within 8 days
from the date of
payment
Income from advance
dividend payment or
shares in profits if by
the expiration of the
year, the profit is not
sufficient to cover the
paid advance, or if income tax advance is
not paid on until the
day of filing the income tax
Income from the assignment of personal
shares
Paid advance
- Profit (if profit
is not achieved, then the
total amount
of the paid advance)
40%
The entity paying out the
income
Resident who obtains receipts from abroad (if not
otherwise specified by international agreements)
– A company that has paid
an interim dividend or
share in profit
– Natural person whose
self-employment is taxed
with an income tax, and
that pays an income advance
Total
income
increased
for
the income tax
and personal income surtax
25%
Income from stock Market value of
option and purchase shares
of personal shares
– contracted
stock prices
+ income tax
and surtax
25%
Income from the Market value of
withdrawal of assets shares with
and the use of services drawn assets
and services
+ income tax
and surtax
40%
Taxable base
Joint-stock
company
which assigns personal
shares
Joint-stock company that
has with a member of the
Board of the company
concluded the right to
purchase personal shares
– The
company
from
which to assets are
exempted at the expense
of the company’s profit
and services are used for
personal needs
– The natural person whose self-employment is
taxed with an income
tax, and that, at the expense of profit of the
activity they perform,
exempts assets and uses
services for personal
needs
by the time of filing the income
tax return
At the same time
as assignment of
shares
8 days from the
date of assignment of shares
at the same time
as the payment
Within 8 days
from the date of
payment
Simultaneously
with the exclusion of assets and
using services
257
Form of income from
capital
Taxable base
Tax rate
Deadline for
payment of the
deposit
Investment
income
arising from capital
gains (applies from January 1, 2016)
The agreed selling price (or
the
receipt
according to the
market value of
financial assets
that are alienated)
– purchase
value
12%
The taxpayer – acquirer of
the receipt, or
Society for financial management or the person
who manages the assets
of the
taxpayer
By January 31st
of the current
year for all capital gains and losses realized in
the previous year
If the dividends and profit shares are paid in kind, the tax base is the market value of
the receipt with the included value added tax plus income tax and surtax.
i Total receipt is not reduced by personal allowance.
i
5. Assessment of the advance payment of income tax on income from insurance:
Taxable base
Who is liable to calculate, Deadline for Tax rate
withhold and pay in the payment of
tax
the deposit
The amount of the paid insurance premiums reco- receipt payer
gnized for tax purposes, or the amount received, if
the latter is lower than the insurance premiums
paid
Receipt in the amount of paid in voluntary pension receipt payer
insurance premiums which were exempt from
taxation and were tax deductible expense or expenditure for the employer or for the taxpayer trader or self-employed person
at the
same time
as the
payment
at the
same time
as the
payment
12%
12%
6. Assessment of the advance payment of income tax on income from
capital
No.
1
2
Taxpayer
Taxable base
Who is liable
to calculate,
withhold
and pay in
the tax
Tax rates
Deadline for
the advance
payment
Resident who obtains
the receipts (except persons referred to in Items
2-14)
the receipts of royalties
the total receipts reduced by the amount of
paid compulsory contributions
the total receipts reduced by 30%
the person
paying out
the receipts
the person
paying out
the receipts
25%
at each
payment and
concurrently
therewith
at each
payment and
concurrently
therewith
258
25%
No.
3
4
5
6
7
Taxpayer
the receipts used for the
determination of other
income for delivered
work of professional
journalists, artists and
sportsmen and who are
insured on that basis
the receipts used for the
determination of other
income for delivered
work of professional
journalists, artists and
sportsmen and who are
insured on that basis
royalties for delivered artistic or cultural work
Taxable base
Tax rates
Deadline for
the advance
payment
the total receipts redu- the person
ced by 30%
paying out
the receipts
25%
at each
payment and
concurrently
therewith
ced by 30%
paying out
the receipts
25%
at each
payment and
concurrently
therewith
the person
paying out
the receipts
25%
at each
payment and
concurrently
therewith
the person
paying out
the receipts
25%
at each
payment and
concurrently
therewith
the amount of refunded contributions for
the compulsory
pay-as-yougo pension
insurance
40%
according to
the decision
of the tax
office
the total receipts reduced by 55% (30% of
tax recognized expenditures and 25% of the
total gross of the part
of the exempt from
fees for artistic or cultural work)
The resident who is a total income
sports referee and sports
delegate at contests of
amateur sports clubs, student and student sports
clubs and those clubs in
international competitions and national selections that are held in accordance with the regulations of the sport in the
Republic of Croatia
Resident who obtains re- amount of refunded
ceipts arising from re- compulsory pension infunded compulsory pen- surance contributions
sion insurance contribu- on the basis of the paytions on the basis of the as-you-go pension inpay-as-you-go pension surance scheme
insurance scheme
Who is liable
to calculate,
withhold
and pay in
the tax
259
No.
8
Taxpayer
Taxable base
Who is liable
to calculate,
withhold
and pay in
the tax
Seasonal worker in agri- daily amount of wages, receipt
culture
or other receipts that payer
the employer paid or
gave to the employee
9
A resident recipient of total receipt subtracted
fees from abroad
by the paid contributions for compulsory insurance (if not otherwise specified by an international agreement )
10 A resident who made the total receipt defitaxable income as the ned as the difference
difference between the between the value of
value of property and the acquired property
funds for its acquisition and proven funds for
its acquiring
11 Non-residents who obtains, royalties, receipts
arising from artistic, entertainment, sport, literary
and
visual
art-related activities, and
the activities connected
with the press, radio,
television and shows
12 Non-Resident who obtains the receipts of royalties
13 Non-resident recipient of
the royalties – when the
agreement on the avoidance of double taxation
is not applied
260
the total receipts diminished by 30% tax recognized expenditures
(if not otherwise specified by international
agreements)
Tax rates
Deadline for
the advance
payment
25%
up to the last
day of the
month in
which the
payment was
made or
given
within 8 days
from the
date of
payment
a resident
recipient
of fees
from
abroad
25%
the tax
administration
determines
the tax
liability by
a
tax decision
the person
paying out
the receipts
40%
15 days from
the date of
delivery of
the tax decision
25%
at each
payment
and concurrently
therewith
the person tax rate on
royalties
paying out
from
the receipts
agreements
on the
avoidance
of double
taxation is
applied
25%
ced by 30%
paying out
the receipts
total income (subject
to the provisions of the
agreements on the
avoidance of double
taxation)
at each
payment and
concurrently
therewith
at each
payment and
concurrently
therewith
No.
Taxpayer
14 A non-resident who
made taxable income as
the difference between
the value of property
and funds for its acquisition
Taxable base
Who is liable
to calculate,
withhold
and pay in
the tax
Tax rates
Deadline for
the advance
payment
the total receipt defined as the difference
between the value of
the acquired property
and proven funds for
its acquiring (if not
otherwise specified by
an international agreement)
the tax
administration
determines
the tax
liability by
a tax decision
40%
15 days from
the date of
delivery of
the tax decision
EXEMPTIONS/ RELIEF/ INCENTIVES
PERSONAL EXEMPTIONS
Individuals who carry out diplomatic and consular duties in the Republic of Croatia
do not pay income tax on income so obtained, as follows:
1. chiefs of foreign diplomatic missions accredited in the Republic of Croatia and
diplomatic personnel of foreign diplomatic missions in the Republic of Croatia, and members of their immediate family, if these members are not Croatian citizens and do not have a registered domicile in the Republic of Croatia,
2. chiefs of foreign consulates in the Republic of Croatia and consular officials
and members of their immediate family, if these members are not Croatian
citizens and do not have a registered domicile in the Republic of Croatia,
3. officials of the UN and separate agencies of the UN, technical assistance experts of the UN and of special agencies of the UN,
4. individuals employed at foreign diplomatic missions, consulates and international organizations, natural persons employed with the chiefs of missions of
diplomatic personnel of foreign diplomatic missions and international organizations in the Republic of Croatia if they are not Croatian citizens and do not
have a registered domicile in the Republic of Croatia,
5. honorary consuls of foreign consulates in the Republic of Croatia for the receipts they obtain from the states that appointed them for the performance
of consular affairs.
EXEMPTIONS FOR CROATIAN DISABLED WAR VETERANS AND FAMILY MEMBERS OF KILLED, CAPTURED OR MISSING CROATIAN HOMELAND WAR VETERANS
1. Natural persons who have status of disabled Croatian Homeland War veterans,
recognized by a ruling pursuant to a special regulation, shall not pay income tax
on employment income and pensions, in proportion to their established disability degree.
2. Natural persons – members of the family of a killed, captured or missing Croatian
Homeland War veteran shall not pay income tax on their family pensions or cash
compensations to the amount of the family pensions realized pursuant to the Act
on the Rights of Croatian Homeland War Veterans and the Members of Their
Families.
261
RELIEF FOR AREAS OF SPECIAL NATIONAL CONCERN, CITY OF VUKOVAR
AND ISLANDS OF THE FIRST GROUP
1. Tax benefits of residents who have a residence and live in areas of special national concern and area of the city of Vukovar are displayed on
page 237.
i
Increased personal allowance in these areas is recognized in the annual income tax
calculation based on the submitted annual tax return, and during the tax period in
determining the advance payment of income from paid employment, the personal
allowance is recognized as the one outside of aided areas and the area of the city of
Vukovar.
2. Tax credits and exemptions for taxpayers performing independent activities in assisted areas (small value aid/de minimis).
The tax relief is granted by the ministry responsible for regional development and the
ministry responsible for agriculture if the beneficiary works in agriculture or fisheries
and aquaculture activities.
Taxpayers who are tax credits beneficiaries record the amount of the break as a reduction of tax liability in the annual return of income tax or annual income report of
joint activities. The income taxpayer determines the amount of aid as the difference
between the tax liability determined by applying the prescribed tax rates and the tax
liability determined under the reduced tax rate, provided that such a fixed amount
does not exceed the ceiling of the small value incentive.
Area of economic
activity
Minimum number of
employees that are
employed for an
indefinite period
I. group of degree of development (see
Appendix 6.1) and
the City of Vukovar
2 (more than 50%
of the employees
must have a place
of residence and
live in the assisted
areas of local
self-government
units, or in the
area of Vukovar)
II. group of degree of development (see
Appendix 6.1)
262
Economic activity
all sectors except the sector of fisheries, aquaculture, agriculture and haulage for rent or fee
the sector of road transport for rent or fee
the fisheries and aquaculture sector
2 (more than 50% all sectors except fisheriof the employees es, aquaculture, the secmust have a place tor of agriculture and
transport for rent or fee
of residence and
live in the assisted the sector of road tranareas of local
sport for rent or fee
self-government
the fisheries and aquaculunits)
ture sector
The upper limit of
support of small
value/de minimis
(calculated on the
basis of “one
entrepreneur”, in
any period during
3 fiscal years)
Rate of
income
tax
EUR 200,000.00
0%
EUR 100,000.00
EUR 30,000.00
EUR 15,000.00
EUR 200,000.00 50% of
the
prescribed
rate
EUR 100,000.00
EUR 30,000.00
EUR 15,000.00
The term “single entrepreneur” includes all companies that have at least one of the
following relationships:
a) an enterprise has a majority of the voting rights of shareholders or members in
another company,
b) an enterprise has the right to appoint or remove a majority of the members of the
administrative, management or supervisory body of another company,
c) a company is entitled to exercise dominant influence over another company under
a contract concluded with that undertaking or to the provisions of the statute or
social contract that the company,
d) a company that is a shareholder or member of another enterprise, controls alone,
pursuant to an agreement with other shareholders or members of that enterprise,
a majority of the voting rights of shareholders or members of the voting rights in
this company.
i It is believed that the taxpayer employs an employee for an indefinite period if the
employee spent at least 9 months in the tax period employed by the taxpayer, had
permanent residence, and resided in assisted areas of local governments, or in the
City of Vukovar.
i If the support user in the City of Vukovar or assisted areas of the I and II group performs more activities for which different rules for de minimis are applied, the same is
obliged to provide in this area, irrespective of the place of business or residence, a
special tax accounting and monitoring of each activity for which different rules for de
minimis are applied.
i If the user of small values performs more activities for applying different rules on small
values assistance shall in accordance with these rules ensure that activities in the sectors
that are excluded from the scope of Commission Regulation (EU) No. 1407/2013 do
not benefit from de minimis granted under this Regulation, as well as to activities in the
sectors that are excluded from its scope of the Commission Regulation (EU) No.
717/2014 do not benefit from de minimis granted under the same regulation.
i
3. Diminishing of annual presumptive income tax of independent activities
Taxpayers who perform independent activities in the aided areas of local self-government units, on islands of the first group and in the area of the city of Vukovar must
pay annual or monthly flat-rate income tax in the amount of:
Area of independent
activity
Percentage
of the base
lump sum
tax
Monthly amount of annual lump
sum tax
– areas of special
national concern
of the first group
(see Appendix 6.1)
– City of Vukovar
– islands of the first
group
25%
HRK 382.50 if the total annual income is up to HRK
85,000.00
HRK 517.50 if the total annual income is from HRK
85,000.01 up to HRK
115,000.00
115,000.01
up to HRK 149,500.00
HRK 31.88 if the total annual
income is up to HRK
85,000.00
income is from HRK 85,000.01
up to HRK 115,000.00
income
is
from
HRK
115,000.01
up to HRK 149,500.00
263
Area of independent
activity
Percentage
of the base
lump sum
tax
Monthly amount of annual lump
sum tax
– areas of special
national concern
of the second group (see Appendix
6.1)
50%
HRK 765.00 if the total annual income is up to HRK
85,000.00
HRK 1,035.00 if the total
annual income is from HRK
85,000.01 up to HRK
115,000.00
HRK 1,345.50 if the total
annual income is from HRK
115,000.00 up to HRK
149,500.00
income is up to HRK
85,000.00
income is from HRK 85,000.01
up to HRK 115,000.00
i
115,000.01
up to HRK 149,500.00
Islands of the first group:
In the first group are the following inhabited or occasionally inhabited islands: Unije,
Susak, Srakane Vele, Srakane Male, Ilovik, Maun, Prvi} (Kvarner islands), Goli, Sv. Grgur, Premuda, Silba, Olib, [karda, Ist, Molat, Dugi Otok, Zverinac, Sestrunj, Rivanj,
Rava, I`, O{ljak, Babac, Vrgada, Prvi} ([ibenik islands), Zlarin, Kaprije, @irje, Veli i Mali
Drvenik, [}edro, Vis, Bi{evo, Sv. Andrija, Lastovo, Su{ac, Vrnik, Mljet, [ipan, Lopud,
Kolo~ep, Lokrum, Kornati and isles of the @ut-Sit archipelago.
EXEMPTION AND RELIEF FOR NATURAL PERSONS CARRYING OUT ARTISTIC
OR CULTURAL ACTIVITIES
Pursuant to the provisions of the Act on the Rights of Self-Employed Artists and on
the Promotion of Cultural and Artistic Creativity, the non-taxable part of author fees
for a work of art shall be 25%. Furthermore, amounts of up to HRK 20,000.00 per
year received from legal entities and natural persons for work performed shall not be
deemed receipts form independent activity of artists whose income is determined as
the balance of receipts and expenses based on business books, provided that trustworthy documentation exists.
EMPLOYMENT INCENTIVES
Income taxable persons who carry out small business activities, independent profession activities and activities in agriculture and forestry as self-employed activities may
have their income from the self-employment activities in the tax period additionally
reduced by the amount of wages and contributions paid on wages of new employees.
i
A new employee shall be an employee with whom a permanent employment contract has been concluded, and whose employment with a taxable person has started
after at least one-month registration with the Croatian Employment Service, and after
the expiry of the trial period, if contracted. A new employee shall also be a person
employed after waiving the right to a pension, or a person employed for the first
time, or a person temporarily employed as a trainee, intern, etc.
264
A taxable person may exercise the right to a reduction of his/her income by the
amount of wages and contributions on the wages of new employees for one year
from their employment. Exceptionally, a taxable person can exercise the right to a
reduction of his/her income by the wages and contributions on the wages of new
employees who are disabled, for a period of three years from their employment.
STATE AID FOR EDUCATION AND TRAINING
Income taxable persons who carry out small business activities, independent profession
activities and activities in agriculture and forestry as self-employed activities may have
their income from the self-employment activities in the tax period additionally reduced
by the expenses for their own education and professional improvement as well as that of
their employees (see Chapter 1.1 Income tax – State aid for education and training).
INCENTIVES FOR RESEARCH AND DEVELOPMENT
Income taxable persons who carry out small business activities, independent profession activities and activities in agriculture and forestry as self-employed activities may
have their income from the self-employment activities in the tax period additionally
reduced by the expenses for research and development, to the amount of 100% of
the expenses incurred and declared in business books.
Research is an original and planned investigation undertaken for the purpose of acquiring new scientific and technical knowledge and understanding, and includes fundamental and applied research. Fundamental research is deemed to be a theoretical
or experimental work undertaken for the acquisition of new knowledge without any
concrete application, while applied research is theoretical or experimental work under-taken for the acquisition of new knowledge and aimed at the attainment of a
practical objective.
i Development is systematic work that is founded on the results of scientific research
and practical experience aimed at the creation of new materials, products and systems and the introduction of new processes, systems and services or a considerable
improvement of existing.
i
Name of the form
RPO – Report to the Re- Taxable person40
gister of Taxable persons
40
8 days from the beginning
of the business activity, that
is from acquiring of receipts
Registration for entry in the register of taxpayers shall be submitted for income from:
– Craft activities, activities of independent professions, agriculture and forestry, and other activities that are taxed as crafts,
– property,
– Self-employed journalists, artists and athletes who are insured on that basis and provide
mandatory insurance contributions according to the decision of the Tax Administration, and
from these activities establish a second income
– Employment generated directly from abroad and diplomatic or consular mission of a foreign
state or international organization or a representative or organization which in the territory
of the Republic of Croatia has diplomatic immunity,
– Employment of crewmembers of a ship in international navigation owned by domestic or
foreign shipping companies,
265
Name of the form
RPO-1 – Report to the the taxpayer who obtains income
Register of Taxable per- from renting of flats, rooms and beds
to travelers and tourists and from orgasons
nizing campsites
M – Request for the advance payment of income tax and surtax on
pension from abroad
according to a ruling
from the Tax Administration
PK – Tax card
JOPPD – Report concerning receipts from employment, income tax,
surtax and contributions
calculated
a pensioner who receives a pension
from abroad, or while being abroad,
and who wishes to pay the advances of
income tax according to the resolution
8 days from the date when
the
competent county
body:
 
approved providing the
services,
 
issued a ruling on repealing the authorization
for providing the services
 
approves a change in the
number of beds and
number of accommodation units in a camp
– by the end of the calendar
year for the next calendar
year at registration changes in the way of taxation
8 days from the beginning
of receiving the pensions, or
no later than 15 days after
the expiration of the calendar year
employee and retiree (see notes next to – for the employee when he
the table)
or she starts working
– for employee and the retiree
– 30 days following the
change related to the
amount
of
personal
allowance
a) employer, the paying agency (other on the date of receiving the
payment, or no later than
than Croatian pension agency)
b) payer of the income on which the the next business day
income from capital is determined
c) payer of the income on which the
income from property rights is determined
d) payer of the income on which the
income from insurance is determined
e) payer of the income on which the
other income is determined (other
than seasonal worker)
– Independent activities from abroad, from property and property rights from abroad, from
capital and other income from abroad
– Pensions that residents receive directly from abroad, regardless of whether the Republic of
Croatia in accordance with international treaties has the right to tax such income.
41
If the dividend is realized in the framework of the ESDP, and based on workers’ shares, or are
generated from investments of the Fund of Croatian Homeland War Veterans and their families
and are designed and divided to the members of the fund.
266
Name of the form
JOPPD – Report concer- a) payer of dividends that are not subject to taxation41
ning receipts from employment, income tax, b) payer of dividends and corporate insurtax and contributions
come (profit) that have been used
calculated
for the purpose of increasing the
company’s registered capital
a) the taxpayer who realizes income directly abroad
b) a pensioner resident who receives a
pension abroad above HRK 3,800.00
(if the pension is taxable in Croatia,
the pensioner does not pay a down
payment of the income tax according to the decision of the Tax Administration)
c) the taxpayer employed in a diplomatic or consular mission of a foreign
state, an international organization
or a representative office or organization in the territory of the Republic
of Croatia that has diplomatic immunity (obligation does not exist if the
condition under d is met)
d) employers – diplomatic missions and
consular offices of foreign states and
international organizations that in the
Republic of Croatia enjoy diplomatic
immunity, and which, for their employees and individuals to whom they
pay wages, calculate, withhold and
pay advance payments of income tax
and contributions (obligation does not
exist if the condition under c is met)
e) natural person for income earned directly by natural persons who are
not self-employed
payers of taxes on income from independent activities of crafts and with
craft management activities, from independent activities and activities of
agriculture and forestry, the income of
which is determined as a difference
between the receipts and expenditures
based on data from the prescribed business books
on the day when the receipts must be calculated
and paid, or no later than
the next business day
within 8 days
of payment
within 8 days
of payment
within 8 days
of payment
within 8 days
of payment
from the date
from the date
from the date
from the date
up to the 15th day in the
month for the previous
month
267
Name of the form
JOPPD – Report concerning receipts from employment, income tax,
surtax and contributions
calculated
payer of non-taxable receipt (for all
payments that were not displayed in
daily reports during the previous
month)
up to the 15th day of the
month for the receipt that
was paid in the previous
month (cumulative report for
all payments during the
month on the same basis by
the individual taxpayer – natural person – unless such receipts are not individually stated at the date of payment)
up to the 15th day of the
month for the receipt that
was paid in the previous
month
the last day of the month in
which the receipt was achieved (or paid), or no later
than the following working
day
domestic payer of receipt to non-residents and assigned employees
a) the Croatian Pensions Insurance Institute (HZMO)
b) payer of the receipt in nature based
on employment
c) employer payer of the receipt of
which the second income is determined to a seasonal worker for provisional (temporary) employment in
agriculture
d) by the payer on the basis of receipt
of special types of alienation of property (waste)
taxpayers – holders of financial assets
for total realized capital gains in the
previous year, reduced by realized capital losses and the associated costs,
which are billed at the expense of the
taxpayer
payers of receipts from the insurance of
things, liability, life and property for
payments that are not considered compensation or damages
up to January 31st of the current year for the previous
year
by the end of February of
the current year for the previous year (summary report
of all payments during the
tax period on the same basis
and by each individual
taxpayer – natural person)
taxpayer or the holder of joint activity up to January 15th for the
whose annual income tax and self-em- previous year
ployment income is determined at a
flat-rate
PO-SD – Report on flat
rate receipt from selfemployment and the
paid flat-tax on personal
income tax and surtax
on income tax in the
year
IP – Report concerning employer (report not submitted to the up to January 31st of the cuwages, salaries and pen- tax authority, but must be given to the rrent year for the previous
sions
employees)
year
268
Name of the form
Data on premiums for 1. payers who pay for their workers and
at their own expense pay premiums
voluntary pension insufor voluntary retirement insurance
rance
2. payer of income tax from self-employment, who determines the income on the basis of business books,
that to their own advantage pay premiums for voluntary retirement insurance
DOH-Z – Revenue applica- Taxpayer – the holder of joint activities
tion from joint activities
DOH- Application of income tax for the year
ZPP-DOH – Application
for recognition of rights
in special process
P-PPI – Excerpt from business books
Certificate of the competent ministry on the
acquisition of rights to
tax relief
42
after the end of the year, and
no later than the end of February for the previous year
up to the end of January of
the current year for the previous year
1. craftsmen, freelancers and other en- up to end of February for the
tities that income determine on the previous year
basis of business books
2. resident crew ship members in international shipping who earn income
from employment on the basis of
work on the ship in international navigation
3. taxpayers for whom the Tax Administration has no information on their
income earned in the tax period, or
taxpayers, who in the tax period realized taxable income on which the
employer, payer of receipts, or the
tax payer has not reported to the Tax
Administration within the prescribed
period on the prescribed report
income taxpayer who does not have the up to end of February for the
obligation to submit annual tax return, previous year
and wishes to exercise the right to benefits in a special process42
income taxpayer who determined inco- with annual tax return
me as the difference between receipts
and expenses on the basis of data from
the prescribed business books
personal income tax, the taxpayer who with annual tax return
is entitled to small value aid
Taxpayers:
a) who wish to take part of the personal allowance for which data are not entered in the tax
card,
b) who wish to redistribute part of the personal exemption for dependent immediate family
members and / or children,
c) who wish to take part of the personal allowance for the mentioned donations or paid contributions in the country for basic health insurance,
d) heirs on behalf of a deceased person,
e) persons who paid income tax abroad and want that amount of tax to be reckoned in domestic tax liability.
269
Name of the form
Form DPOM – Certificate
of days in international
navigation
Form EPOM – Records
on receipts from employment
Certificate of paid receipts from employment
to a crew member of a
ship in international navigation
Overview of eligible expenses for education
and training
Calculation of state
support for education
and further training
Form ST – Records on
paid scholarships for
academic year
Application for tax refund for dividends under
The Agreement for the
avoidance of double
taxation between The
Republic of Croatia and
Application for tax relief,
tax exemption or tax refund for interest and similar duties under the
Agreement for the avoidance of double taxation between the Republic of Croatia and
tax exemption or tax refund for licenses and similar duties under the
Agreement for the avoidance of double taxation between the Republic of Croatia and
tax exemption or tax refund for renumeration
for activities performed
in the Republic of Croatia, under the Agreement
for the avoidance of double taxation between the
Republic of Croatia and
270
the resident crew member of a ship in with annual tax return
international navigation
the resident crew member of a ship in with annual tax return
international navigation
domestic employer of a crew member up to January 31st of the cuof a ship in international navigation
rrent year for the previous
year
taxable person entitled to tax advanta- up to end of February for
ges in accordance with the Act on State the previous year
Aid for Education and Training
payers of scholarships
taxpayer
to be submitted at the
request of the tax administration
three years from the expiry
of the year in which the remuneration was paid
taxpayer
taxpayer
taxpayer
Note to Form PK: worker and a person who receives a salary when they first
enter into employment are required by the competent Tax Administration office according to their permanent or temporary residence to request a PK
Form and submit it to the employer or payer of salary. It is not an obligation
of the pensioner for who the Tax Administration via the Croatian Pension Insurance Institute submits data from the PK form at retirement
Retired resident payer of income tax on the basis of the pension which is
received directly from abroad, and according to the contract on avoidance of double taxation, the Republic of Croatia has the right to tax such a
pension; they must calculate the down payment of income tax on the basis of
received foreign pension themselves. If when calculating the advance, they
want to exercise the right to personal deduction, they must of the relevant tax
administration, according to their permanent or temporary residence, apply
for a tax card (Form PK), and then permanently store it.
Note: pensioners who in equal monthly amounts receive pensions from abroad, or
directly receive abroad, can in the competent Tax Administration office, according to
their permanent or temporary residence, eight days from the start of receiving pension, or no later than 15 days after the end of the calendar year, request that payment of advances for income tax be enabled according to the decision. In justified
cases, the request may be submitted during the calendar year.
Every change that affects personal allowance (related to the dependents of immediate family and children, the change of permanent or temporary residence, etc.) the
employee, retiree and a person who receives a salary should report to the local tax
office and submit to it relevant documents within 30 days from the date of change,
as well as employers or payers of receipt (of wages) and pensions for which they
generate receipts from employment.
i Based on data from the tax card, an employer and payer of wages and pensions determines the non-taxable income – personal allowance of each worker, pensioner and
person who derives income (salary) and retirement, and other information necessary
for the proper establishment and routing of the calculated advance income tax of
employment and surtax.
i
i Notes to Form JOPPD:
If the report is submitted on a Form JOPPD for more than 3 taxpayers natural persons,
the person who files the reports must submit the data from the Form JOPPD electronically via the system ePorezna.
The obligation of filing the Form JOPPD does not extend to payers and taxpayers for:
1. receipts for health needs which natural persons receive on the basis of donations
by natural persons that do not perform independent activity,
2. Grants for property destruction or damage as a result of natural disasters,
3. Grants for property destruction or damage as a result of war,
4. Inheritances and gifts,
5. income from the alienation of personal property, other than receipts from alienation of specific types of property (waste),
6. Damages unrelated to a economic activity,
271
7. Receipts from the participation in prize competitions or contests held under equal
conditions and open to everyone, as well as receipts from games of chance,
8. maritime addition to international navigation ships
9. voluntary pension insurance premiums,
10. pensions of residents realized abroad which would be taxable if not for the
agreements on the avoidance of double taxation,
11. pensions from abroad if the total amount of receipts from employment is less
than the amount of personal allowances,
12 pensions from abroad on the basis of which the advance income tax is paid according to the decision of the Tax Administration,
13. support to union members on the holidays by the unions from union funding
dues in cash or in kind, and help union members at settling costs of organization
of trade union sports games out of union dues that unions organize once a year
for its members,
14. receipts from interest on securities issued in accordance with the special law,
15. charges of transportation and lodging for students who participate in competitions/
festivals, excursions, field trips and other educational activities that are exclusive to
the realization of the national curriculum, and students who participate in education
and education-related program activities within regular education programs,
16. compensation paid in the amount of actual expenditure on the basis of official
travel during the competition and preparation paid by non-profit organizations
– sports clubs and associations, athletes and others persons in sport, and that in
these organizations do not receive income from employment or income that are
the basis of other income,
17. reimbursement of expenses related to business travel, which is in accordance
with the provisions of Article 10 Items 9 and 11 of the Personal Income Tax Act
considers receipts that do not require paying income tax, except payments in
cash for daily wages and/or fees for the use of private cars for official purposes,
18. social benefits and trade union social assistance provided to in nature and available to all members of trade unions alike,
19. all other non-taxable revenues/receipts not deemed to be income that are not
listed in Appendix 4 to the JOPPD Form.
BUSINESS BOOKS AND RECORDS
1. Taxpayers who carry out independent activities of crafts, independent professions,
agriculture and forestry, and income determined as the difference between receipts and expenditures based on business books:
 Book of receipts and expenses (Form KPI)
 List of fixed assets (Form DI)
 Turnover book43 (Form KPR)
43
Tax payers of income tax that are non-payers of value added tax are not obliged to run a turnover book, provided that the activity is not carried out in several business units, and the data in
the Book of receipts and expenditures are entered at the end of the working day, at the latest
before the start of the next working day. Income taxpayers that keep daily traffic logs by special laws are also not obliged to run a turnover book, provided that the information on daily cash
transactions are recorded in these registers within the prescribed deadlines.
272
 Log of claims and obligations44 (Form TO)
 Records on income from employment45 (Form DNR)
2. Taxpayers who perform independent activities in trade, agriculture and forestry,
and pay annual flat-rate tax on income
 Turnover book (Form KPR)
3. Taxpayers who provide services to citizens in the household, and on that basis to
pay the income tax in the annual lump sum
 Turnover records (Form EP)
ANNUAL TAX RETURN
Taxable person obliged to submit the annual tax return:
After the elapse of the taxable period (the same as the calendar year), an annual tax
return of a prescribed form and content must be submitted by:
1. taxable person who during the taxable period has obtained income from independent personal activities (small business and professional income) and
activities equivalent to independent personal activities such as crafts, independent activities, agriculture and forestry activities, etc. (income tax is determined according to the business books)
2. taxpayer, if in the past year during the same month, they simultaneously received income from employment (salary or pension) with two or more employers or pension payers
i
From 1 January 2016, a special procedure is applied to these taxpayers so that they
are not required to file an annual income tax return, provided that the Tax administration has all the necessary data for determining income.
3. taxpayer if the employer, payer of receipts or tax payer did not calculate, withhold or pay the advance income tax and surtax on income and reported to the
Tax Administration on the JOPPD Form
4. taxpayer – resident if, in the past year or tax period, the received directly from
abroad:
a) Income from employment
b) income from self-employment (crafts, independent professions, agriculture
and forestry)
c) income from other activities which is be determined as income from selfemployment on the basis of information from prescribed business books
5. taxpayer resident, if the taxable income in the previous year, and tax period,
they received directly from abroad and the advances of income tax from that
income were not paid in the country, or were paid in the country in the amount
less than the amount that would be calculated according to the provisions of
Income Tax Act, unless in accordance with the agreement on avoidance of double taxation, the Republic of Croatia exempts such income from taxation,
These records are obliged to be kept only by taxpayers who run books of incoming and outgoing invoices according to paid or charged invoices, but taxpayers who run books on incoming
and outgoing invoices according to VAT rules and enter data on received and issued invoices in
them are not obliged to keep these books.
45
The employer and payer of salaries and pensions are required to keep it.
44
273
i
An annual income tax return is not required to be filed by recipients of foreign income who filed the JOPPD Form.
6. The taxpayer – resident who is a member of a crew of a ship in international waters, regardless of the number of days spent on the ship in international waters,
7. The taxpayer if the Tax Administration has requested them to additionally pay
income tax,
The taxpayer is required in the annual tax return to show only the income for which
they required to file an annual tax return and income from employment, in addition
to employment income derived by a resident – crew member of the ship in international waters and income from employment that a resident receives directly from
abroad and that the Republic of Croatia, in accordance with the agreement on avoidance of double taxation, exempts from taxation. If, along with the income for which
they are required to file an annual tax return, the income from employment express
income from other sources as well, they are required to show the total realized income in the tax period, except for the income that the Republic of Croatia, in accordance with the agreement on avoidance of double taxation, exempts from taxation.
i For income taxpayers who are required to file an annual tax return, but fail to do so
or if the data from the annual tax return is incorrect or incomplete, the Tax administration shall determine revenue with an assessment.
i
Taxable person that is not bound to submit an annual tax return:
A taxable person is not obliged to submit the annual tax return if, during the taxable
period, acquires an income from:
1. Income from employment at the same time only with one employer in Croatia, or with several employers or payers of receipts in Croatia, but not concurrently,
2. income from property and property rights that are not determined on the
basis of the data from the prescribed business books,
3. Income from capital,
4. Income from insurance,
5. other income, and provided that it is not obliged to submit an annual tax return for income for which that obligation is prescribed according to the items
mentioned in the preceding paragraph.
i
A taxpayer who, during the tax period, only acquired the income may submit the annual tax return on account of this income, in order to exercise:
a) the realization of rights on any unused personal deduction for which data are not
entered in the tax card (part of the personal allowance for members of the immediate family dependents and/or children and the redistribution of personal allowance
for dependents, for determined disability of the taxpayer and dependent family
members, for the larger part of the personal allowance on the basis of residence
and temporary residence in the areas of special national concern and the area of
the city of Vukovar, a part of the personal allowance for paid contributions for
compulsory health insurance in the country, and donations)
b) the right to an evenly distributed annual tax, i.e. a levelled out annual tax base,
274
c) calculation of taxes paid abroad,
d) tax refund on the basis of the annual income of the testator,
e) other rights prescribed by legislation.
If the taxpayer submits annual tax return in order to achieve the above-mentioned
rights, he/she is obliged to report in the annual tax report the total income in the tax
period on all sources of income.
Taxable person that cannot submit an annual tax return:
A taxable person may not submit the tax return for:
1. Income on which a lump sum tax is assessed during the taxable period.
2. Other income derived from refunded contributions,
3. Other income based on the difference between the value of the property and
funds for its acquisition.
Special procedure for ascertaining the annual personal income tax:
The specific procedure to determine the annual income tax and surtax on income tax
refers to the tax payers of realized income from employment with domestic employers or payers of receipt, income from property and property rights, income from
capital, income from insurance and other income, and only if the Tax administration
has the necessary data on earned income. Taxpayers affected by a special procedure
for determining annual income tax are not obliged to file an annual income tax return. For these taxpayers, the Tax Administration, based on the available data, makes
a temporary tax resolution establishing the difference of income tax and surtax on
income tax payment or refund.
The following taxpayers that are not obliged to file an annual tax return can by the
end of February of the current year apply to the tax authorities in the form of the
ZPP-DOH form for recognition of the right to a tax deduction in the previous year:
1. taxpayers who want to take part of the personal allowance for which data are
not entered in the tax card on the basis of:
a) dependent members of the immediate family and/or children and their disability/physical damage,
b) personal disability/physical disability,
c) residence and stay in the assisted areas and the town of Vukovar,
2. taxpayers who wish to redistribute part of the personal exemption for dependent immediate family members and/or children,
3. taxpayers who wish to take part of the personal allowance for the mentioned
donations or paid contributions in the country for basic health insurance,
4. taxpayers successors in the name of the deceased,
5. taxpayers who paid income tax abroad and want that amount of tax to be
reckoned in domestic tax liability.
i
And taxpayers on whom a specific procedure is not applied, and are not exempt from
it, may, by the end of July of the current year, for the previous year, apply for issuance
of a temporary tax solutions to the tax authorities, in which they will provide the data
on the basis of which they believe that special procedure should be applied to them.
275
i
Taxpayers on whom a special procedure is applied, and who did not submit a ZPP-DOH
form by the end of February of the current year for the previous year, and in the interim
tax solution on the established annual income, the tax paid abroad is not presented, if
they wish for that tax to be imputed to domestic tax liability on income, they may file a
complaint by the end of July of the current for the previous year. With the complaint,
they must submit certificates of a foreign tax authority on paid tax abroad or confirmation by certified personnel of the paid tax abroad. Taxpayers who, for valid reasons, are
not able to supply a certificate of tax paid abroad within the prescribed period, may
submit a certificate by November 30th of the current year, and they are obliged to mention that in the appeal. The Tax Administration shall issue a tax ruling within 30 days of
receipt of the certificate of paid tax or rarely, to the end of December in 2016.
A special procedure does not apply to taxpayers:
1. engaged in an independent activity and activities on the basis of which the
income is determined and taxed as income from self-employment on the basis
of information from prescribed business books
2. which do not have the obligation to submit an annual tax return, and if they
would submit it, they would have an obligation to pay income tax
3. resident crew ship members in international shipping who earn income from
employment on the basis of work on the ship in international navigation
4. for whom the Tax Administration has no necessary information on their income earned in the tax period, or taxpayers, who in the tax period realized
taxable income on which the employer, payer of receipts, or the tax payer has
not reported to the Tax Administration within the prescribed period on the
prescribed report.
The process of determining annual income tax and surtax on income tax:
• The Tax Administration, based on records and information available on the
taxpayer, no later than June 30th of the current year, shall submit for the previous year a temporary tax ruling on the established annual income generated
in the previous year and the difference between the income tax and surtax on
income tax payment or refund. Delivery takes place at the address of their
residence from official records. Exceptionally, if the taxpayer receives a temporary tax solution after June 30th, a complaint may be filed within 30 days
from receipt of the decision. Such deliveries are considered personal delivery.
• The taxpayer may lodge an appeal to a temporary solution if they consider
that the data from this solution is incomplete or incorrect, or if they consider
that they meet the other prescribed conditions under which they can realize
tax benefits not covered by the temporary tax solution. Complaints must be
submitted no later than July 31st of the current for the previous year. Exceptionally, if the taxpayer receives a temporary tax solution after June 30th, a
complaint may be filed within 30 days from receipt of the decision. The first
instance tax authority shall make a decision within 30 days from receipt of the
complaint. The complaint shall stay the execution of temporary tax decision
until a ruling on the objection. If the first instance tax authority, based on the
filed complaint and after checking the data reported in the interim tax ruling,
finds that there is a basis to modify that decision in accordance to the allega-
276
tions in the complaint, they then make a tax ruling against which no appeal
is permitted. The tax liability determined by the tax decision is considered to
be finally determined tax liability. If the first instance tax authority, on the
basis of the filed complaint and after checking the data reported in the interim tax ruling, determined that the allegations in the complaint are unfounded, they then make a tax ruling that dismisses the complaint. Against
such a decision an appeal may be made within 30 days of its delivery.
• Taxpayers who do not have the obligation to submit an annual tax return to
which a special procedure is applied may, based on a complaint submitted by
July 31st, waive the application of a special procedure. In this case, a temporary tax ruling shall be reversed.
• For taxpayers who do not file a complaint, the obligation of an established
temporary tax ruling is considered final. The taxpayer is required to pay the
difference of taxes no later than July 31st of the current year. If the taxpayer
is eligible for a refund of overpaid income tax and surtax on income tax, the
Tax Administration carries out the return in accordance with the provisions of
the Income Tax Act and the General Tax Act.
• If a special procedure is not applied a special procedure to the taxpayer, and
they are not exempt, and if they have not, by the end of February of the current, provided data on paid tax abroad for the previous year on Form ZPPDOH, then they may by the end of July, submit a request to the tax authorities
for the release of a temporary tax solution which will provide the data on the
basis of which they considered that it should apply to a special procedure.
i
The Tax Administration shall not deliver to taxpayers a temporary tax solution if the
costs of assessment and collection of taxes are disproportionate to the paid income
tax and surtax.
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Write in the account number for the payment of income taxes and surtaxes of the taxpayer’s city/municipality. If a taxpayer has no place of residence or habitual residence in the Republic of Croatia, the income
tax is paid on the account of the city/municipality according to the headquarters of the payer of the income.
277
Write in the PIN-personal identification number of the payer of the income (11 digits)
On the payment order, the taxpayer must write in the classification of the JOPPD form according to which the payment
is performed, those being 1880, 1899, 1910, 1929, 1937 and 1945 (5 digits)
Classification
46
Kind of revenue
Payment of tax
1430
Advance payment of income tax and surtax on the inco- up to the last day in the month for the
me of independent personal activities (small business previous month
and professional income) and equivalent activities, on
the income from independent professional personal activities, on the income from agriculture and forestry and
other activities based on the data from prescribed business records
1449
Advance payment of income tax and surtax on the inco- until the last day of each quarter
me of independent personal activities (small business
and professional income) and equivalent activities, on
the income from independent professional personal activities, on the income from agriculture and forestry and
other activities that are subject to lump sum taxation
1503
Advance payment of income tax and surtax on income up to the last day in the month for the
from rentals and property rights paid according to a ru- current month
ling from the Tax Administration
1511
Advance payment of income tax from renting of flats, by the end of each quarter, and up to
rooms and beds to travelers and tourists and from orga- 1/4 of the annual lump sum taxation i.e.
nizing campsites that is subject to lump sum taxation
in proportion to the number of quarters
for which the obligation is determined
1619
Tax and additional tax on income based on the annual 15 days from the delivery of decision
report
(from 1 January 2016 taxpayers performing independent business activity no
later than on the day of the annual tax
return)
1627
Income tax and surtax from property rights, capital, insu- 15 days from the receipt of the ruling
rance and other income that were determined in the
audit for the previous year
1635
Advance payment of income tax and surtax on income 15 days from the receipt of the ruling
from real estate and property rights paid according to a
ruling from the Tax Administration
1848
Advance of tax and surtax on second income based on up to the last day in the month for the
professional activities of journalists, artists and athletes previous month
who are insured on such basis and contribute for compulsory insurance according to the resolution
1880
Tax advance on personal income and surtax arising from at the same time as the payment 8 days
employment (salary)
from the day of payment46 for income in
kind up to the last working day of the
month in which the income was made
– An employee in a diplomatic or consular mission of a foreign state, an international organization or a representative or organization with diplomatic immunity in the Republic of Croatia when the taxpayer under the Income Tax Act, or the worker’s employer, on behalf of its
workers, took over the calculation, withholding and paying advance income tax
– A worker who receives salary directly from abroad, if they are a taxpayer under the Income
Tax Act and the provisions of the agreement on avoiding double taxation.
278
1899
Tax advance on personal income and surtax arising from − payer of pension (other than Croatian
employment (pension)
Pension Insurance Institute) at the
date of payment of pension
− Croatian Pension Insurance Institute
at the date of receipt payment
− On the basis of pensions realized
abroad (the advance payment is not
paid by the decision of the Tax Administration), by the end of the month
for the current month, and if the
monthly payment is less than HRK
100.00, then by the last day of the
quarter
1910
Tax advance on personal income and surtax arising from − at the same time as the payment of
income from capital
receipt, withdrawal of property and
use of services for private purposes
− 8 days from the date of payment of
receipt, if the receipt comes from
abroad, and it is not otherwise specified by an international agreement
− until the time of filing the annual tax
return arising from advance dividend
payment or shares in profits if by the
expiration of the year, the profit is not
sufficient to cover the paid advance,
or if income tax advance is not paid
on that basis
1929
Tax advance on personal income and surtax arising from at the same time as the payment, or
property rights and special types of property
according to a ruling from the Tax Administration
1937
Tax advance on personal income and surtax arising from at the same time as the payment
income from insurance
1945
Tax advance on income and surtax on income based on at the same time as the payment
the receipts that determine the second income
1953
Advance payment of income tax and surtax on pension according to the decision of the tax offifrom abroad paid according to a ruling from the Tax Ad- ce
ministration
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Write in the account number:
- HR1210010051700013000 (tax and surtax on income based on savings interests)
- HR1110010051700013018 (temporary account of tax and surtax on income based on savings interests)
279
Write in PIN number of the credit institution (11 digits)
Write in the code of the city/municipality with a control number (4 digits). Taxpayers, who do not have a
domicile or habitual residence in the Republic of Croatia, write in the code “0000”
For account number HR1210010051700013000 write in the number from the JOPPD form according to
which the payment is performed (5 digits)
i
Obligation of fiscalization (see Chapter: 1.1 Corporate income tax – Payment accounts and deadline for payment)
TAX REGULATIONS
Income Tax Act (Official Gazette No. 177/04, 73/08, 80/10, 114/11, 22/12,
144/12, 120/13, 125/13, 148/13, 83/14, 143/14, 136/15),
148/13, 83/14, 143/14, 136/15), 73/13, 26/15, 44/16),
Fiscalization Act in Dealing with Cash Transfers (Official Gazette No. 133/12),
51A/13, 148/13, 76/14, 18/15),
Law on the Reconstitution and Development of the City of Vukovar (Official Gazette No. 44/01, 90/05, 80/08, 38/09, 148/13),
The Act on the Rights of Croatian Homeland War Veterans and Members of Their
Families (Official Gazette No. 174/94, 92/05, 2/07, 107/07, 65/09, 137/09,
146/10, 55/11, 140/12, 19/13 – revised text, 33/13, 148/13, 92/14),
Regulation on Conditions and Procedures for Obtaining Customs Duty Exemptions for Croatian Homeland War Veterans and Members of Their Families (Official Gazette No. 19/10),
Act on the State Aid for Education and Further Training (Official Gazette No.
109/07, 152/08, 14/14),
Act on District Areas, Cities and Municipalities in the Republic of Croatia (Official
Gazette No. 86/06, 125/06, 16/07, 95/08, 46/10, 145/10, 37/13, 44/13 i 45/13),
Act on Regional Development of the Republic of Croatia (Official Gazette No.
153/09, 147/14),
Act on Promoting the Development of Small Business (Official Gazette No. 29/02,
63/07, 53/12, 56/13,
Decree on development index (Official Gazette No. 63/10, 158/13), Decision on
classification of local and regional self-government units according to development level (Official Gazette No. 158/13),
Act on Copyright and Related Rights (Official Gazette No. 167/03, 79/07, 80/11,
141/13, 127/14),
Act on Rights of Independent Artists and Promotion of Cultural and Artistic Creativity (Official Gazette No. 43/96, 44/96),
Hospitality and Catering Industry Act (Official Gazette No. 138/06, 152/06,
43/09, 88/10, 50/12, 80/13.30/14, 89/14, 152/14),
Ordinance on Tax Relief for Corporate Income Tax Payers in the City of Vukovar
and in Areas of Special National Concern (Official Gazette No. 157/14),
280
Decision on Regional Aid Map (Official Gazette No. 19/13, 155/13),
Decision on Publishing Rules Concerning De Minimis Aid (Official Gazette No.
45/07),
Maritime Code (Official Gazette No. 181/04, 76/07, 146/08, 61/11, 56/13),
Employment Incentive Act (Official Gazette No. 57/12, 120/12),
Sustainable Waste Management Act (Official Gazette No. 94/13),
9/09, 146/09, 123/10, 137/11, 61/12, 79/13, 160/13, 157/14, 137/15),
Ordinance on Lump Sum Taxation of Independent Activites (Official Gazette No.
143/06, 61/12, 160/13, 137/15),
Regulations on the Activities of Renting Flats, Rooms and Beds to Travelers and
Tourists, and Activities of Organizing Camps, Which Will Be Subject to Lump-sum
Taxation, on the Amount of Lump-sum Tax and on the Manner of Its Payment,
Official Gazette No. 48/05, 148/09 and 148/09;
Ordinance on Tax Relief for Corporate Income Tax Payers in the City of Vukovar
and in Areas of Special National Concern (Official Gazette No. 157/14),
Ordinance on the Content of Records of State Support for Education and Further
Training (Official Gazette No. 12/08, 13/09),
Ordinance on the Content and Form of the Contract for Seasonal Employment in
Agriculture and Value Coupon (Official Gazette No. 64/12)
Ordinance on the Minimum Daily Wage for Seasonal Employees in Agriculture in
2016 (Official Gazette No. 137/15),
Gazette No. 51/11, 62/11),
Ordinance on the Form, Content, Deadline and Manner of Delivery of Business
Books, Records and Reports Kept in Electronic Form (Official Gazette No. 59/09),
Ordinance on Fiscalization in Dealing with Cash Transfers (Official Gazette No.
146/12),
4.2 REAL ESTATE TRANSFER TAX
TAXABLE PERSONS
The acquirer of real estate in Croatia when on such acquisition, value added tax (VAT)
is not paid.
i
The supplier of the property who is registered as a VAT payer calculates and pays VAT
when they deliver:
a) building plots, and
b) buildings, or parts thereof (and the land on which they are built), if they are occupied or used for less than 2 years.
281
A building plot is deemed to be the plot for which an executive act was issued which
authorizes the construction (building permit, location permit, construction resolution
and the like).
i First residence, i.e., use, is deemed to be the moment of putting the real estate into
use, of which a taxpayer must have appropriate documentation (document of the
competent authority of the place of residence or habitual residence, bookkeeping
records whereby the building or parts thereof are put into use, or a rental contract, a
contract on the delivery of electricity, water, and the like. If the first residence and use
cannot be proven with one of the documents listed, the date of first residence or use
shall be considered the date of the first delivery. Delivery of buildings or parts thereof
and land on which they are before the first residence or use, or delivery in which no
longer than 2 years have passed since the date of the first settlement and use until
the date of the following delivery is considered to be the delivery of reconstructed
buildings or parts thereof and land on which they are located, if the costs of reconstruction in the previous 2 years prior to the delivery were greater than 50% of the
sales price. THE ACQUISITION OF REAL ESTATE shall mean the buying and selling,
exchange, inheritance, gift, contribution of real estate to a company and withdrawal
of real estate from a company, acquisition of ownership by means of adverse possession, acquisition of real estate in the procedure of liquidation or bankruptcy, acquisition pursuant to court or other body’s decision and other methods of acquiring real
estate from other persons.
i The acquisition of real estate is deemed to be a sale, exchange, inheritance, endowments, registration and deregistration of real estate in/from a company, acquisition
by usucaption, real estate acquisition in liquidation or bankruptcy, acquisition based
on the decision of the Court or other body, and other ways of acquiring the real estate of other people.
i
Real estate comprises:
1. land
2. buildings
buildings (developed and undeveloped)
agricultural (improved and unimproved)
forests
residential buildings and parts of them
commercial and all other buildings and parts of them
other buildings and parts of them (roads, bridges, garages and other)
TAXABLE BASE
The market value of the real estate at the moment when the tax liability incurs. If the
taxpayer does not report the emergence of tax liability within 30 days from the day of
its occurrence to the tax administration on the area of which the real estate is located,
then the taxable base is the market value of the real estate at the time of application,
i.e. when the tax administration became aware of the emergence of tax liability (according to the condition of the property at the time of occurrence of the tax liability).
i
The market value of real estate shall mean the price of the real estate that is obtained
or can be obtained on the market at the moment when the tax liability incurs. If the
real estate is evaluated in financial statements according to the cost model, the market value of the real estate is to be assessed by the Tax Administration.
282
Manner of acquiring the real estate
Taxable base
Incurrence of tax liability
With compensation (payment in money, cession of some other real estate, things or rights, acquired debts of
previous owner and others)
Acquisition of real estate on the basis
of a decision of a court or other body
of the national administration
the market value of the real estate, i.e. the total amount of fee
for the transferred real estate
property
the market value of the real estate
at the moment of
concluding a contract
at the moment when
a court decision or the
ruling of a body od
the national administration according to
which the real estate
is acquired has legal
force
Exchange of real estate
the market value of the real esta- at the moment of
te which an individual partici- concluding a contract
pant acquires by interchange
The acquisition of the real estate wit- the market value of the real
at the time of effectihout inheritance compensation
estate
veness of the ruling of
inheritance
at the moment of
The acquisition of the real estate wit- the market value of the real
hout compensation (gifting and estate
other)
Entering the real estate in the com- the market value of the real
at the moment of
pany
estate
The exclusion of real estate from a the market value of the real
at the moment of
company
estate
Real estate acquisition in liquidation the market value of the real
at the time of effectior bankruptcy
estate
veness of the judicial
decision
at the moment of
The acquisition of real estate for the the market value of the real
lifelong support of the recipient on estate
the basis of the contract of life long
support
The acquisition of real estate after market value of the real estate at the time of death
the death of recipient of support on until the death of the life long of the recipient of
the basis of the contract of life long supported recipient reduced by support
5% for each year of the duration
support
of support from the day of
conclusion of the contract which
is certified by the competent
court, or solemnized by a notary
public, or it is composed in the
form of a notary public act,
Real estate acquisition by usucaption the market value of the real esta- at the time of effectite
veness of the judicial
decision
283
Manner of acquiring the real estate
The acquisition of real estate by a public tender, public sale or in bankruptcy proceedings, and proceedings in which one of the participants is
a legal person owned in majority by
the Republic of Croatia or the units
of local and regional self-government, government bodies, institutions whose only founder is the
Republic of Croatia, or a unit of local
and regional self-government
The acquisition of parts of a real
estate
Taxable base
Incurrence of tax liability
everything that the acquirer, or at the time of the creanother person for the acquirer, ation of the act
gives or pays for the acquisition
of real estate
the market value of the ideal part at the time of concluof the property which is acquired sion of the contract or
the effectiveness of a
by an individual co-owner
judicial decision
The acquisition of real estate by a na- the market value of the real esta- at the time of obtaining the consent of
tural or legal person which requires te
the Minister of Justice
consent of the Minister of Justice to
acquire a real estate on the territory
of the Republic of Croatia
The acquisition of real estate by na- the market value of the real esta- at the time of effectiveness of the judicial
tural or legal persons on the basis of te
decision
court decisions
TAX RATES
5%.
EXEMPTIONS
GENERAL EXEMPTIONS:
The following are exempt from real property transaction tax:
1. The Republic of Croatia, units of local and regional self-government, public
government bodies, institutions established solely by the Republic of Croatia
or by units of local and regional self-government, trusts and foundations
and all legal entities established solely by the Republic of Croatia, Red Cross
and similar charitable organizations established pursuant to separate regulations,
2. Diplomatic or consular missions of a foreign state on condition of reciprocity and international organizations for which by treaty the exemption from
the payment of real estate transfer tax has been agreed on
3. Persons who acquire real estate in the procedure of the restitution of confiscated property and of the consolidation of real estate
4. Displace persons and refugees who acquire real estate through exchange of
foreign real estate
5. Citizens who buy a residential building or flat including the land thereof to
which they had tenant’s rights or with the consent of the bearer of the tenant’s rights according to the regulations governing the flats to which there
are tenant’s rights,
284
6. Protected lessees who are buying the residential building or flat in which
they reside according to the lease agreement
7. Spouse, descendants and ancestors, adopted persons and adopters acquiring real estate pursuant to a lifelong support contract concluded with the
recipient of support
8. Persons acquiring specific portions of real estate pursuant to dissolution of
co-ownership or distribution of joint title, provided that the proportion of
the acquired specific portion equals the proportion of an ideal co-owned
portion of the real estate as a whole prior to the dissolution of co-ownership
or distribution of joint title
9. Citizens who, pursuant to buying or selling contract, acquire their first real
estate (flat or house) thereby resolving their personal housing needs, provided that the requirements are cumulatively met This exemption does not
apply to newly built real estate on which the VAT is paid.
10. Citizens who, pursuant to a purchase contract, acquire a plot of land within
construction area not exceeding 600 m2 of surface on which they are to
construct a house for the purpose of resolving their housing needs
TAX EXEMPTIONS WHEN PUTTING REAL ESTATE INTO A CORPORATION
When real estate is being put into a corporation as a founding stake or as an augmentation of the paid up capital real estate transfer tax is paid. This tax is not paid
even when the real estate is obtained in a procedure for the merger, takeover or division of corporations.
TAX EXEMPTIONS IN THE EVENT OF INHERITANCE, DEED OF GIFT OR SOME
OTHER WAY OF ACQUIRING REAL ESTATE WITHOUT COMPENSATION
The real estate transfer tax during inheritance, deed of gift and some other way of
acquiring real estate without compensation is not paid by:
1. Spouse, descendants and ancestors, adopted persons and adopters having a
relationship with a deceased or giving person
i
In accordance with the provisions of the Family Act and Same-Sex Life Partnership
Act, persons of the same sex extramarital unions and informal life partners have the
same rights regarding donations and inheritance47.
2. Legal entities and natural persons to whom the Republic of Croatia or units of
local and regional self-government give real estate as a gift or without compensation for the purpose of indemnification or on other grounds pertaining
to the Homeland War
3. Former spouses when they settle their property relations in connection with
divorce.
47
Extramarital union is a union of an unmarried woman and an unmarried man that lasts for at
least 3 years, and less if the same have a common child or the union was continued by concluding the marriage. Informal life partnership is a family union of two same sex persons that have
not concluded a lifetime partnership in front of the competent authority, if the community lasts
for at least 3 years, and it has meet the requirements prescribed for the validity of the life partnership from the beginning.
285
PRIVILEGES DURING TAXATION OF THE TRANSFER OF REAL ESTATE IN AREAS OF SPECIAL NATIONAL CONCERN
Real estate transfer tax is not paid by the citizen that for the purpose of housing
acquires a property owned by the Republic of Croatia in a special national concern
area if they reside at this property.
Real estate transfer tax is paid later if, within 10 years from the date of acquisition of
the property, that real estate is disposed of, or if the taxpayer changes residence. Exceptionally, the transfer tax is not paid if a citizen who qualified for exemption from
payment of this tax within 10 years from the date of acquisition of the property disposes the property to an heir of the first order who resides in the area of special national concern. In this case, the new acquirer enters the position of legal-authority, a
period of 10 years is calculated from the day the ancestor acquired the property.
i Citizens who have until 31 December 2013 acquired the right of ownership in real
estate in the areas of special national concern and fulfilled the prescribed conditions
do not pay tax on real estate. They are obliged to pay this tax if within 10 years from
the date of acquisition of the property, they dispose of the property, or change their
place of residence outside the area of special national concern, or they do not really
reside in the area of special national concern. Exceptionally, if a citizen within 10 years
disposes of the property, for which they received immunity, to their heir of the first
order who resides and dwells in the area of special national care, they are not obliged
to pay tax on real estate. In that case, the new acquirer shall enter into the positions
of legal successor of the prohibition of disposal of property, and the period of prohibition of alienation of 10 years shall be calculated from when the ancestor of the
property acquired.
i
EXEMPTION ACCORDING TO PROVISIONS OF THE LAW CONCERNING SOCIALLY ENCOURAGED HOUSING CONSTRUCTION
In the case of the acquisition of the ownership of real estate, the Agency for the legal
trade and agency in real estate does not pay tax on the transfer of real estate.
TAX EXEMPTIONS UNDER THE LAW ON LEGAL STATUS OF RELIGIOUS
ORGANIZATIONS
A religious organization is not liable to pay the real estate transfer tax on the acquisition of sacral buildings or land for the construction of sacral buildings, irrespectively
of the manner in which such real estates have been acquired.
286
FORMS AND DEADLINES FOR SUBMISSION OF FORMS
Name of
the form
form
Report of taxpayer
tax on the
transfer of
real estate
30 days from:
• the conclusion of the contract or other legal work on the
basis of which a real estate is acquired,
• the moment a court decision or decision of the body of
State administration became final, on the basis of which
a real estate is acquired,
(Form
• the moment of the death of the recipient of support,
PNN)
when based on the contract on lifelong support the
right of ownership of property is transferred after the
death of the recipient of support,
• the time of the conclusion of the lifelong support when
the right of ownership of property on the basis of contract for lifelong support is transferred before the death
of the recipient of support
• obtaining the consent of a foreign person who acquires
consent
• from the decisions on the recognition of the right of
ownership acquired by usucapion
Report of the supplier of the pro- 30 days from the date of delivery of the real estate when
transfer of perty who is not in the VAT on real estate is calculated (to be submitted electronireal estate VAT system, and who cally using the system ePorezna)
calculated VAT on the
(Form
delivery of real estate
PPN)
NOTE: If the real estate is acquired based on the valid court decision on inheritance,
the taxpayer is to report the emergence of tax liability by delivering the valid ruling
on inheritance.
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287
of the ruling setting the real estate transfer tax.
TAX REGULATIONS
Real Estate Transfer Tax Act (Official Gazette No. 69/97, 26/00, 127/00, 153/02,
22/11, 143/14), General Tax Act (Official Gazette No. 147/08, 18/11, 78/12,
136/12, 73/13, 26/15, 44/16),
51A/13, 148/13, 76/14, 18/15),
Publicly Subsidized Residential Construction Act (Official Gazette No. 109/01,
82/04, 76/07, 38/09, 86/12, 7/13, 26/15),
Act on the Legal Status of Religious Organizations (Official Gazette No. 83/02),
Family Act (Official Gazette No. 103/15),
Inheritance Act (Official Gazette No. 48/03, 163/03, 35/05, 127/13, 33/15),
Same-sex life partnership Act (Official Gazette No. 92/14),
Ordinance on the Property Registration Form and the Register of Real Estate
Transfers(Official Gazette No. 157/14),
Order on Confirming the Status of Municipalities Belonging to the Third Category of Areas of Special National Concern (Official Gazette No. 138/01),
288
5. TAXES ON WINNINGS FROM
GAMES OF CHANCE AND FEES FOR
ORGANIZING GAMES OF CHANCE
i
i
i
i
i
Games of chance may be organized by companies with registered office in the Republic of Croatia based on a decision of the Government of the Republic of Croatia
and the authorization of the Ministry of Finance The decision on the gaming concession shall be made by the Government of the Republic of Croatia upon the proposal
of the Ministry of Finance. The right to organize games of chance is given for a period
of 15 years counting from the day of the signing of such contract. Based on the decision of the Government of the Republic of Croatia on the concession for organizing
games of chance, the Minister of Finance shall conclude a contract with the concessionaire. The contract may be cancelled, and the notice period is six months. The
contract may be cancelled and the notice period shall be six months. When the concessionaire cancels the contract due to operating losses, the notice period shall be 60
days. The Government of the Republic of Croatia may, upon proposal by the Ministry
of Finance, decide to revoke a gaming concession.
It is prohibited to organize games or activities in which participants pay certain
amounts to those participants that joined the game or activity before them and who
expect the payment of specific amounts from participants that should join the game
or activity after them (chains of luck, etc.).
Games of chance shall not be organized in free zones.
The gaming operators shall operate according to the legislation regulating the prevention of money laundering and terrorist financing, particularly in cases of customer
due diligence, identification of the beneficiary owner, and identification of customers,
suspicious transactions and terms for keeping customers’ information.
It is prohibited:
1. To operators from abroad and to organize the games of chance and award games
hereof in the territory of the Republic of Croatia,
2. To participate in international games of chance if stakes are paid in the territory of
the Republic of Croatia,
3. To collect stakes in the Republic of Croatia for the participation and payment in
games of chance organized abroad,
4. Sale, keeping, assignment, issue, advertising or any promotion or publicity of international games of chance and award games in the territory of the Republic of
Croatia.
5.1 TAXES ON WINNINGS FROM LOTTERY GAMES
AND FEE FOR ORGANIZING LOTTERY GAMES
Lottery games are:
1. Games the result of which is conditioned upon the drawing of numbers or
symbols after the conclusion of sales (lotto and alike, numerical lotteries, binThe Croatian Tax System
289
go and alike, keno and alike, tombola and alike, additional games to those
from this item)
2. games with predetermined (result) gains (express lotteries, instant lotteries
and other similar games)
3. games the result of which is conditioned upon the outcome of a competition
(sports betting and other similar games),
4. games the result of which is conditioned by the player’s selection of way, the
order of occurrence of specific elements of the game (tickets with random
selection of numbers or symbols and other similar games).
i
i
Hrvatska Lutrija d.o.o. shall have the exclusive right to operate the lottery games.
The conditions for operating lottery games are established by the rules adopted by
the operator for each type of a game, and are applicable after receipt of authorization issued by the Ministry of Finance.
TAX ON WINNINGS FROM LOTTERY GAMES
Type of fee
Monthly fee for
organizing lottery
games
Payer
Basis for the calculation of
the fee
operator of the total value of the sold
lottery game
tickets
total value of received
payments for a game
Amount of
fee
10% of
the basis
Deadline for
payment
the 15th day of
the current
month for the
preceding month
TAX ON WINNINGS FROM LOTTERY GAMES
Taxpayer
Natural
person
winning
gains
from
lottery
game
who is liable to
calculate,
withhold and
pay in the tax
Operator of
the lottery
game
Taxable base
On financial gains
On gains, consisting of objects,
services or rights
Sum of individual
gain ranging from
HRK 750.00 to HRK
10,000.00
Market value of the objects,
services or rights forming an
individual gain ranging
above HRK 750.00 up to HRK
10.000.00
individual gain ranging above
HRK 10,000.00
up to HRK 30,000.00
above HRK 30,000.00
up to HRK 500,000.00
above HRK 500,000.00
individual gain
above HRK
10,000.00 up to
HRK 30,000.00
individual gain
above HRK
30,000.00
up to HRK
500,000.00
Sum of individual
gain above HRK
500.000.00
290
Tax
rate
Rok
pla}anja
poreza
10%
the 15th
day of
15% the
current
month
for the
preceding
20% month
30%
ERECORDS AND DEADLINES FOR SUBMISSION OF RECORDS
Name of the record
Form No. 18 – final monthly account of
the monthly fee for organizing lottery
games
Form No. 19 – final monthly record with
the final operating result and proof of
payment of the monthly fee for organizing lottery games
record
Deadline for submission of
record
operator of the lottery until the 20th day of the cugame
rrent month for the preceding month
operator of the lottery until the 20th day of the cugame
rrent month for the preceding month
PAYMENT ACCOUNTS
Payment accounts are presented on page 287.
TAX REGULATIONS
Act on Games of Chance (Official Gazette No. 87/09, 35/13, 158/13, 41/14,
143/14),
26/15, 44/16),
Decree on the Criteria for the Determination of Beneficiaries and on the Manner
of Distribution of a Part of Revenue from Games of Chance for 2016 (Official
Gazette No. 38/16),
Ordinance on Lottery Games (Official Gazette No. 78/10, 69/11, 22/15, 45/16),
Ordinance on Mandatory Records for Calculating Fees from Games of Chance
(Official Gazette No. 8/15),
5.2 FEES FOR OPERATING CASINO GAMES
Casino games are:
1. Games played by players against the casino or one against another on gaming
tables with balls, cards or dices in compliance with international rules,
2. Various tournaments in which the number of players is not predetermined
and the number of payments is un own.
Games of chance may, in addition to Hrvatska Lutrija d.o.o., be also organized by
companies which are awarded the concession by the decision of the Government of
the Republic of Croatia on operating games of chance in casinos and which have
entered into a concession contract. An authorization for the start of the gaming operations shall be issued by the Ministry of Finance.
i Games of chance in casinos may be organized on a seasonal basis in a continuous
period of a minimum of four to a maximum of six months in a calendar year, and in
two casinos at the most.
i
291
i
For organizing various tournaments, the operator must obtain an authorization from
the Ministry of Finance. Information on the amounts of payments by participants
shall be enclosed to the application for organizing a tournament.
Share Capital and Bank Guarantee
The operator who was awarded the concession by the decision of the Government
of the Republic of Croatia shall during the concession term have in the Register of
the Commercial Court the registered share capital of minimum HRK 4,000,000.00
during the entire concession term. If a company is awarded a concession for another game of chance, it must also have the prescribed registered share capital for
the other game of chance it organizes. For the purpose of ensuring the disbursement
of winnings to players and the payment of public levies in terms of the General Tax
Act, the operator who was awarded the concession by the decision of the Government of the Republic of Croatia shall for each casino continuously have, in the period
in which he organizes casino games, a bank guarantee of HRK 1,500,000.00 in a
bank with registered office in Croatia.
If the guarantee is provided for a period shorter than the concession term, the concessionaire shall submit a new guarantee latest 30 days before the expiration of the
former guarantee.
If a concessionaire organizes casino games through interactive channels of on-line
games, he shall also continuously have, in the period in which such games are organized, a bank guarantee of HRK 3,000,000.00 for the disbursement of winnings to the
players and the payment of public levies in terms of the General Tax Act.
i The operator shall have a stored safety deposit in the casino in the minimum amount
of HRK 500,000.00 or the equivalent value in EUR.
i The operator shall ensure continuous audio-video surveillance in a casino. Records
shall be kept for 60 days, or in case of dispute, until the termination of the dispute to
keep up to the end of the dispute.
i
FEE FOR OPERATING CASINO GAMES
Type of fee
Fees for operating
casino games
Payer
operator of the
casino game
operator of the
Monthly fee for organizing casino tour- casino tournament
naments
292
Basis for the calculation of the fee
– sum of the
daily accounts
of all tables
– sum of the
daily accounts
of all slot
machines
percentage of
the receipts retained by the organizer from all the
receipts from
participants in a
tournament
Amount of fee
Deadline for
payment
15% of the
basis for the
calculation of
the fee
the 15th day of
the current
month for the
preceding
month
25% of the
basis for the
calculation of
the fee
the 15th day of
the current
month for the
preceding
month
Type of fee
Payer
Amount of fee
Annual fee for operating casino games
operator of the
casino games48
up to HRK
500,000.00
through interactive
channels of on-line
games
operator of the
casino games
through interactive channels of
on-line games
HRK
3,000,000.00
Deadline for
payment
by the end of
December of the
current year for
the following
year
by the end of
December of the
current year for
the following
year
Name of the form
form
Deadline for submission of form
croupier and inspector
of the table
Form No. 2 – Finale state
of the table
Form No. 3 – Grants
cashier
Form No. 4 – Loans
of the table
Form No. 5 – Daily account per ta- croupier and inspector
ble
of the table
Form No. 6 – Account of tips
of the table
Form No. 7 – Table of results
of the table
Form No. 8 – Report of cashier’s cashier
desk
Form No. 9 – Report of tournament head of the casino or
head of the tournament
daily at the opening of casino
Form No. 1 – Initial state
daily at the closing of casino
when issuing grant
during takeover of loans
during carrying out of daily
account
after the tournament
RECORDS AND DEADLINES FOR SUBMISSION OF RECORDS
Name of the record
Form No. 20 – final monthly account of the monthly fee for organizing games of chance in casinos
Form No. 21 – final monthly account of fees for organizing casino
tournaments
48
49
record
Deadline for submission of record
operator of the casino until the 20th day of the current
games49
operator of the casino until the 20th day of the current
tournament
For every casino opening during the year, the annual fee shall be payable to the full amount.
The operator shall submit a monthly report separately for tables and slot machines.
293
Name of the record
record
Report of lost, destroyed
otherwise alienated chips
Records of all chips
or operator of the casino until the 20th day of the current
games
operator of the casino continuous record-keeping
games
Report on the annual fee paid and operator of the casino 7 days from the deadline for
proof of the paid fee
games
payment of annual fee
PAYMENT ACCOUNTS
TAX REGULATIONS
143/14),
26/15, 44/16),
Decision on the Number of Organizers with the Right to Organize Games of
Chance in Casinos in the Republic of Croatia (Official Gazette No. 96/10)
Gazette No.38/16),
Ordinance on Casino Employment Licensing (Official Gazette No. 78/10),
Ordinance on Operating Casino Games through Interactive Channels for Online
Games (Official Gazette No. 78/10),
(Official Gazette No. 8/10, 48/14),
Ordinance on Premises and Technical Requirements for Organizing Games of
Chance in Casinos, on Slot Machines and in Betting Shops (Official Gazette No.
38/10, 130/10, 69/11, 15/12),
5.3 TAX ON WINNINGS FROM BETTING GAMES
AND FEE FOR ORGANIZING BETTING GAMES
Betting games are:
1. Betting on the results of individual or group sports events,
2. Betting on other events.
i
Betting games may, in addition to Hrvatska Lutrija d.o.o., be also organized by companies who have been awarded the concession by the decision of the Government of
the Republic of Croatia on operating betting games and who have entered into a
concession contract. The authorization for the start of receipt of payments shall be
issued by the Ministry of Finance.
294
In the territory of the Republic of Croatia, the organization of betting is banned:
1. Where it is contrary to the legal provisions and the general ethical principles,
2. Where it pertains to the results of the elections for President of the Republic of
Croatia, Croatian Parliament members, and members of the representative bodies
of the local and regional self-government units,
3. To an operator whose owner or shareholder is also a member, owner or shareholder of a sports club with regard to events in the type of sport and within the
range of competition to which the club in which the operator is owner or shareholder belongs to.
i It is prohibited to receive payments for bets from persons under the age of 18.
i
The operator who was awarded the concession by the decision of the Government
of the Republic of Croatia shall during the concession term have in the Register of
the Commercial Court the registered share capital of minimum HRK 4,000,000.00
during the entire concession term. If a company is awarded a concession for another game of chance, it must also have the prescribed registered share capital for
the other game of chance it organizes. For the purpose of ensuring the disbursement
of winnings to the players and paying the public levies in terms of the General Tax
Act, the operator who was awarded a concession by the decision of the Government
of the Republic of Croatia and who in the precedent business year received payments
from bets in the amount of HRK 200.000.000,00, shall continuously have, in the
period in which he carries out the gaming operations, a bank guarantee of HRK
5.000.000,00 in a bank with registered office in Croatia. The bank guarantee which
covers payments exceeding HRK 200.000.000,00 shall be submitted according to
the following table:
i
Payments (in HRK million)
Guarantee amount (in HRK)
200 – 300
300 – 400
400 – 500
500 – 600
600 – 800
800 – 1000
above HRK 1000
7.000.000,00
9.000.000,00
11.000.000,00
12.000.000,00
13.000.000,00
14.000.000,00
15.000.000,00
The operator shall provide the bank guarantee for the current year by January 31st,
with the validity period until the last day of February of the following year.
295
TAXES ON WINNINGS FROM BETTING GAMES
Taxpayer
Who is liable to
calculate,
withhold and pay
in the tax
Natural person winning
gains from
betting
game
Taxable base
Operator of the winnings up to HRK 10,000.00
betting game
winnings ranging from
HRK 10.000.00 to HRK 30,000.00
winnings ranging from
HRK 30,000.00 to HRK 500,000.00
winnings exceeding HRK 500,000.00
Tax
rate
Deadline for
payment
10%
15%
up to the
15th day in
the month
for the
previous
month
20%
30%
FEE FOR OPERATING BETTING GAMES
No.
Type of fee
Payer
Basis for
the calculation of the
fee
Amount of fee
total sum 5% of the base
for the calculatiof
payments on of the fee
1
Monthly fee for orga- operator of the
nizing betting games betting games
2
Annual fee for the organization of betting
through betting shops and self-service
terminals
operator of the
betting games through betting shops
and self-service
terminals
HRK
1,000,000.00
3
Annual fee for organization of betting
through interactive
sales channels of online gaming
operator of the
betting games through interactive sales
channels of on-line
gaming
HRK
3,000,000.00
Deadline for
payment
the 15th day
of the current month
by the end of
December of
the current
year for the
following
year
by the end of
December of
the current
year for the
following
year
Name of the form
Who is liable to
submit the form
Form No. 10 – Daily account operator of the every day after work hours and no later than
the beginning of receiving payment for the
of business results for the betting games
next day (delivery by electronic mail)
organization of betting
296
Name of the record
Who is liable to submit
the form
Form No. 22 – Final monthly account of
the fee for organizing betting games
operator of the
betting games
Form No. 23 – final monthly record with
the final operating result and
proof of payment of the monthly fee for
organizing betting games
Report on the annual fee paid and proof
of the paid fee
operator of the
betting games
operator of the
betting games
current month for the preceding month
current month for the preceding month
7 days from the deadline for
PAYMENT ACCOUNTS
TAX REGULATIONS
143/14),
26/15, 44/16),
Chance in Casinos in the Republic of Croatia (Official Gazette No. 96/10),
Gazette No. 38/16),
Ordinance on Premises and Technical Requirements for Organizing Games of
38/10, 130/10, 69/11, 15/12),
Ordinance on Organizing Remote Betting Games (Official Gazette No. 8/10,
63/10, 22/15),
5.4 FEES FOR ORGANIZING SLOT MACHINE GAMES
Slot machine games are games on electromechanical, electronic or similar devices
(slot machines) where by payment of specific amount players have the opportunity
to generate gain.
i
The games of chance may, in addition to Hrvatska Lutrija d.o.o., be also organized by
companies who were awarded the concession by the decision of the Government of
the Republic of Croatia on operating slot machine games. An authorization for the
start of the gaming operations shall be issued by the Ministry of Finance.
297
The operator may organize slot machine games on a seasonal basis in a continuous
period of a minimum of four to a maximum of six months, in two slot machine clubs
at the most.
i The operator may stop organizing slot machine games only with a specific authorization of the Ministry of Finance.
i
The operator who has been awarded a concession for slot machine games by the
decision of the Government of the Republic of Croatia shall have, during the concession term, registered share capital of minimum HRK 2,000,000.00 in the Register of
the Commercial Court. If the concessionaire is awarded a concession for another
game of chance, he must also have the prescribed registered share capital for the
other game of chance he organizes.
For the purpose of ensuring the disbursement of the winnings to the players and the
payment of public levies in terms of the General Tax Act, the operator of slot machine
games who has been awarded a concession by the decision of the Government of
the Republic of Croatia shall, prior to the operations of the first 30 slot machines,
submit a bank guarantee in the amount of HRK 300.000,00 to a bank with registered office in Croatia. If a concessionaire operates games of chance in several slot
machine clubs or on several slot machines, the concessionaire shall submit a guarantee according to the following table:
Number of slot
machines
Guarantee amount
(in HRK)
31 – 60
61 – 90
91 – 120
121 – 150
151 – 180
181 – 210
211 – 250
More than HRK 250
500,000.00
700,000.00
900,000.00
1,100,000.00
1,300,000.00
1,500,000.00
2,000,000.00
5,000,000.00
The operator shall continuously have a bank guarantee for the period during which
slot machine games are organized. If the guarantee is provided for a term shorter
than the concession term, the operator shall provide a new guarantee latest 30 days
prior to the expiration of the former guarantee.
i The visit and the participation in slot machine games is permitted only to adults of
the age of majority who at the organizer’s request are obliged to prove their age with
an ID document.
i
Conditions and Method of Start of Operation
The operator of slot machines shall provide the possibility for the storage of received
payments and disbursements by providing for a control system. The operator shall
make it possible for the Ministry of Finance to connect to the organizer’s IT system, in
real time, for the purpose of establishing and ensuring continuous and direct control.
298
Technical Functionality and Sealing of Slot Machines
The slot machines and gaming tables shall be technically functional and the control
devices for receipts, disbursements, program boards and games and parts affecting
the result of the game shall be sealed.
i
The sealing of the slot machines shall be conducted by authorized officials of the
Ministry of Finance and the operator shall enclose to the application for sealing proof
of payment of a fee in the amount of HRK 300.00 per slot machine to the state
budget. Proof of payment of a fee in the amount of HRK 500.00 per system to the
state budget shall be enclosed to the application for the sealing of the jackpot and
the on-line systems.
FEE FOR ORGANIZING SLOT MACHINE GAMES
Type of fee
Payer
Monthly fee from the
receipts from slot
machine games
operator of the
slot machine
games
Annual fee for operating slot machine games50
operator of the
slot machine
games
Annual fee for operating slot machine games in a slot machine
club on an electronic
roulette of up to 6
playing places
Annual fee for operating slot machine games in a slot machine
club on an electronic
roulette exceeding 6
playing places
operator of the
slot machine
games
sum of the daily
accounts of all
slot machines
operator of the
slot machine
games
Amount of fee
Deadline for
payment
25% of the
basis for the
calculation of
the fee
the 15th day
of the current
month for the
preceding
month
by the end of
December of
the current
year for the
following year
HRK
10,000.00
EUR per slot
machine
HRK
40,000.00
HRK
50,000.00
PRESCRIBED FORMS
Name of the form
form
Form No. 11 – Daily account authorized person for re- after making daily calculation for
per slot machine
presentation and ma- slot machine
nagement of the operator51
If new machines are put in operation during the year, the full annual fee per machine has to be
paid.
51
The operator is obliged to prepare a separate form for daily calculations for games with multiple
seats for players. An operator who has linked several games in order to make cumulative
winnings possible (jackpot) is obliged to keep daily records of potential
50
299
Name of the form
form
Form No. 12 – Account of cash authorized person for reper each slot machine
presentation and management of the operator
Form No. 13 – Report of cashier
cashier’s desk for slot machines
after making daily calculation for
slot machine
after making daily calculation for
slot machine
The name of the record
Who is liable to
submit the record
Deadline for submission of record to
Tax Administration
Form No. 14 – Sum of the daily results for
each slot machine52
Form No. 15 – List of states of electronic dials
Form No. 16 – List of states of electronic dials (gauges bet and win)
Form No. 17 – List of states of mechanical
dials53
Form No. 24 – Final monthly account of fee
for slot machine games
Report on the annual fee paid and proof of
the paid fee
operator of the
betting game
operator of the
betting game
operator of the
betting game
operator of the
betting game
operator of the
betting game
operator of the
betting game
7 days from the deadline for
PAYMENT ACCOUNTS
TAX REGULATIONS
143/14),
26/15, 44/16),
Chance in Casinos in the Republic of Croatia (Official Gazette No. 6/13),
Gazette No. 38/16),
(Official Gazette No. 8/10, 48/14),
jackpot winnings, on which slot machine the same was won, date and amount If the organizer
connected more slot machines in a jack-pot line, the same is obliged to indicate the fact which
slot machines are in the jack-pot line in the form.
52
The sum of the daily account of the single slot machine from the first until the last day of the
month for which the account is made.
53
Exceptionally the operator can create a list of conditions of mechanical dials on each slot
machine only for bet and win dials or gauges on the input and output if the dials on each slot
machine do not record all the necessary information.
300
Ordinance on Technical Compliance of Slot Machines and Gaming Tables (Official
Gazette No. 38/10, 130/10, 49/13, 12/14),
Regulations on Premises and Technical Requirements for Organizing Games of
38/10, 130/10, 69/11, 15/12),
5.5 FEE FOR ORGANIZING OCCASIONAL
ONE-TIME GAMES OF CHANCE
A non-profit legal entity with the registered office in the territory of the Republic of Croatia organizing sports competitions may, once per year, conduct
betting related to such competitions in the premises of a sports institution,
stadium or hall in which such competitions take place. A raffle can be prepared solely based on the special approval of the Ministry of Finance, with the
condition that the tickets can be sold for up to 30 days, and only the sold
tickets are included in the drawing.
A non-profit legal entity with the registered office in the territory of the Republic of Croatia organizing sports competitions may, once per year, conduct
betting related to such competitions in the premises of a sports institution,
stadium or hall in which such competitions take place.
i
The total value of the issued tickets for specific games of chance shall not exceed HRK
300,000.00. The price of a ticket shall not exceed the value of the minimum winning.
FEE FOR ORGANIZING OCCASIONAL ONE-TIME GAMES OF CHANCE
Payer
organizer of occasional total value of received
one-time games of chan- payments for a game
ce
sum of total payments for the
participation in occasional
one-time game
Amount of fee
7 days from the
5% of the
base for the publication of the
calculation of drawing
the fee
Name of the record
Who is liable to submit the record
Report on the final account organizer of occasional one-time 7 days from the publication of
games of chance
the drawing
301
PAYMENT ACCOUNTS
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3000
Winnings from lottery games
3034
Fee for organizing occasional one-time games of chance
3093
Fee for sealing machines for games of chance
3107
Special funds generated in a public tender for sale of undivided prizes
3131
Monthly fee for organizing lottery games
3140
Tax on winnings from lottery games
3158
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Classification:
Description of payment:
3042
Monthly fee for organizing betting games
3050
Fees for operating casino games
3085
Monthly fee for operating slot machine games
3123
Annual fee for operating slot machine games
3166
3174
Annual fee for operating betting games
TAX REGULATIONS
Act on Games of Chance (Official Gazette No. 87/09, 35/13, 158/13, 41/14, 143/14),
General Tax Act (Official Gazette No. 147/08, 18/11, 78/12, 136/12), 73/13, 26/15,
44/16),
Decree on the Criteria for the Determination of Beneficiaries and on the Manner of
Distribution of a Part of Revenue from Games of Chance for 2016, Official Gazette
No. 38/16;
Ordinance on Mandatory Records for Calculating Fees from Games of Chance (Official Gazette No. 8/10, 48/14).
Order on Payment of Budget Revenues, Mandatory Contributions and Revenues for
Financing Other Public Needs in 2016 (Official Gazette No. 37/12).
5.6 FEE TO THE CROATIAN RED CROSS FROM THE
PRIZE CONTEST FUND AND LIABILITIES ON THE
BASIS OF FUNDS GENERATED IN A PUBLIC
TENDER FOR SALE OF UNDIVIDED PRIZES
Award Games are games organized by companies for the promotion of their products
and services as well as by other legal entities and individual entrepreneurs, where an
organizer undertakes to distribute prizes in goods or services to the drawn winners,
without asking the participants for specific payment for the participation in the game.
The registration of participants in award games by means of calls in all forms of electronic communication networks and via SMS is not deemed a special payment for
participation provided that the cost per call or SMS does not exceed the amount determined in the special regulation issued by the Minister of Finance, in agreement
with the relevant regulatory authority for electronic communication.
i Award games are not deemed to include quizzes. In terms of this Act, a quiz shall
mean a game played in public, in which one or several prequalified participants compete in skill, competence or knowledge in various fields, according to the organizer’s
rules, where winning depends exclusively on the results achieved in a given topic.
One or several prequalified players are included in the quiz exclusively based on the
presented skills and capacities, that is, knowledge.
i
The rules of an award game shall be set out by the organizer, and shall be applicable
after an authorization of the Ministry of Finance and their publication in electronic
and other public media.
303
i
An award game cannot be organized according to the rules of the games of chance
and the organizer cannot create the fund of gains with the payments of the participants.
The fund of prizes in an award game may consist exclusively of goods and services
that cannot be exchanged for money by the winner, the total value of which according to market prices cannot exceed HRK 1,000,000.00 per award game.
O
 ut of the determined value of the fund of the award game, the

organizers shall pay a fee of 5% to the Croatian Red Cross.
I
f a prize fund exceeding HRK 5,000.00 in value is not distributed upon
the completion of an award game, the organizer shall sell it at a public auction and the proceedings shall be paid to the state budget within 90 days from the expiration of the term for the collection of the
prizes. By way of exception, this provision does not refer to prizes
whose value has become null upon the expiration of a specific term.
Request for the approval organizers must provide the Ministry of Finance at least 15
days before the date specified as the start of an award game. The application for the
organization of an award game organizers are obliged to submit:
1. the final draft rules of an award game,
2. proof of payment of compensation for the organization of an award game on
behalf of the Croatian Red Cross,
3. other documents in connection with organizing of an award game at the request of the Ministry of Finance,
4. prescribed amount of administrative fees (in state stamps).
PAYMENT ACCOUNTS
Write in the
PIN-personal
identification
number of
the taxpayer
(11 digits)
70+8'4<#.0+0#.1)<#2.#ç#0,'
2.#6+6'.,
PC\KXKOGKCFTGUC
8CNWVC
RNCèCPLC
*KVPQ
+\PQU
+$#0KNKDTQLTCìWPC
RNCVKVGNLC
/QFGN
+$#0KNKDTQLTCìWPC
RTKOCVGNLC
/QFGN
HR 0 5
The Croatian Red Cross
ĪKHTCPCOLGPG
&CVWOK\XTīGPLC
1DT*7$
8CNWVC
RQMTKèC
HR7 3 2 3 6 0 0 0 0 1 1 0 1 3 9 6 0 3 2
24+/#6'.,
PC\KXKOGKCFTGUC
304
HRK
XXXXXXXXXXX
The fee in the amount
of 5% of the value of the
prize games fund
1RKU
RNCèCPLC
QUQDC
6TQīMQXPC
QREKLC
$'0
5*#
2QVRKUMQTKUPKMC27
174
70+8'4<#.0+0#.1)<#2.#ç#0,'
2.#6+6'.,
PC\KXKOGKCFTGUC
8CNWVC
RNCèCPLC
*KVPQ
HRK
+\PQU
+$#0KNKDTQLTCìWPC
RNCVKVGNLC
/QFGN
+$#0KNKDTQLTCìWPC
RTKOCVGNLC
HR1 2 1 0 0 1 0 0 5 1 8 6 3 0 0 0 1 6 0
/QFGN
24+/#6'.,
PC\KXKOGKCFTGUC
HR 6 8
ĪKHTCPCOLGPG
Special funds generated in a public
tender for sale of undivided prizes
1RKU
RNCèCPLC
&CVWOK\XTīGPLC
1DT*7$
8CNWVC
RQMTKèC
QUQDC
6TQīMQXPC
QREKLC
$'0
5*#
2QVRKUMQTKUPKMC27
174
TAX REGULATIONS
143/14),
26/15, 44/16),
Gazette No. 38/16),
(Official Gazette No.8/10, 48/14),
Ordinance on organizing lottery games (Official Gazette No. 8/10),
Ordinance on Organizing Remote Betting Games (Official Gazette No. 8/10),
305
6. ANNEXES
6.1
Units of local and regional self-government
according to the degree of development
Units of regional self-government according to the degree of development
I. group of regional self-government units with development index lower
than 75% compared to Croatian average:
Bjelovar-Bilogora County, Brod-Posavina County, Karlovac County, Koprivnica-Krièvci
County, Krapina-Zagorje County, Lika-Senj County, Me|imurje County, Osijek-Baranja County, Poèga-Slavonia county, Sisak-Moslavina County, Virovitica-Podravina
County and Vukovar-Syrmia County.
II. group of regional self-government units with development index between 75% and 100% compared to Croatian average:
Split-Dalmatia County, [ibenik-Knin County and Vara`din County.
III. group of regional self-government units with development index between 100% and 125% compared to Croatian average:
Dubrovnik-Neretva County, Zadar County and Zagreb County.
IV. group of regional self-government units with development index higher than 125% compared to Croatian average:
City of Zagreb, Istria County and Primorje-Gorski Kotar County.
Units of local and self-government according to the degree of development
I. group of local self-government units with development index lower than
50% compared to Croatian average:
Babina Greda, Biskupija, Cetingrad, Civljane, â|avica, Deànovac, Donji Kukuruzari,
Donji Lapac, Drenovci, Drenje, Dvor, \ulovac, Gornji Bogi}evci, Gradina, Gundinci,
Gunja, Hrvatska Dubica, Jagodnjak, Kapela, Kistanje, Klo{tar Podravski, Krnjak, Levanjska Varo{, Lokvi~i}i, Marku{ica, Mikleu{, Nova Bukovica, Nova Ra~a, Oku~ani,
Pla{ki, Podgora~, Podravska Moslavina, Rovi{}e, Sopje, Staro Petrovo Selo, Sunja,
[odolovci, [pi{i} Bukovica, [tefanje, [titar, Trnava, Vo}in, Vojni}, Vrbje, Vrginmost,
Vrhovine and Zrinski Topolovac.
II. group of local self-government units with development index between
75% and 100% compared to Croatian average:
Andrija{evci, Antunovac, Barilovi}i, Bebrina, Bednja, Beli Manastir, Belica, Beli{}e,
Benkovac, Berek, Bilje, Bizovac, Bogdanovci, Borovo, Bosiljevo, Bo{njaci, Brestovac,
Breznica, Brinje, Brodski Stupnik, Budin{~ina, Bukovlje, Cerna, Cernik, Cestica, Cista
Provo, Crnac, â~inci, âglin, âzma, êminac, Darda, Davor, Desini}, Doma{inec,
Donja Moti~ina, Donja Vo}a, Donji Andrijevci, Dragali}, Dra`, Drni{, Drnje, Dubrava,
306
\akovo, \ur|enovac, Erdut, Ernestinovo, Ervenik, Farka{evac, Ferdinandovac,
Feri~anci, Gar~in, Gare{nica, Generalski Stol, Glina, Gola, Gorjani, Gornja Rijeka,
Gornja Stubica, Gornja Vrba, Gornji Mihaljevec, Gra~ac, Gradec, Gradi{te, Grubi{no
Polje, Hercegovac, Hlebine, Hrvace, Hrvatska Kostajnica, Ilok, Imotski, Ivankovo, Ivanska, Jak{i}, Jarmina, Jasenovac, Josipdol, Kalnik, Kamanje, Kaptol, Kijevo, Klakar,
Kneèvi Vinogradi, Knin, Kon~anica, Koprivni~ki Bregi, Ko{ka, Kotoriba, Kula Norinska, Kutjevo, Lasinja, Legrad, Lipik, Li{ane Ostrovi~ke, Lobor, Lovas, Lovre}, Luka~,
Magadenovac, Majur, Mala Subotica, Mali Bukovec, Marijanci, Martijanec, Martinska Ves, Mihovljan, Mu}, Mursko Sredi{}e, Negoslavci, Netreti}, Nijemci, Nova
Gradi{ka, Nova Kapela, Novigrad (Zadar County), Novo Virje, Novska, Nu{tar, Obrovac, Oprisavci, Orehovica, Oriovac, Orle, Oto~ac, Otok (Split-Dalmatia County), Otok
(Vukovar-Syrmia County), Pakrac, Peteranec, Petlovac, Petrijevci, Petrinja, Petrovsko,
Pitoma~a, Pleternica, Podbablje, Podcrkavlje, Podturen, Pokupsko, Pola~a, Poli~nik,
Popovac, Posedarje, Preseka, Prgomet, Pribislavec, Privlaka (Vukovar-Syrmia County),
Proloàc, Promina, Punitovci, Rakovec, Rakovica, Rasinja, Re{etari, Ribnik, Runovi}i,
Ruì}, Saborsko, Satnica \akova~ka, Selnica, Semeljci, Severin, Sibinj, Sikirevci, Sira~,
Skradin, Slatina, Slavonski [amac, Slivno, Slunj, Sokolovac, Stankovci, Stara Gradi{ka,
Stari Jankovci, Stari Mikanovci, Ston, Strizivojna, Suhopolje, Sveti \ur|, Sveti Ivan
@abno, Sveti Petar Orehovec, [androvac, [estanovac, [kabrnja, [trigova, Tompojevci,
Topusko, Tordinci, Tounj, Tovarnik, Trilj, Trpinja, Udbina, Une{i}, Velika, Velika Kopanica, Velika Pisanica, Velika Trnovitica, Veliki Gr|evac, Veliko Trojstvo, Viljevo, Virje,
Visoko, Vi{kovci, Vladislavci, Vo|inci, Vrbanja, Vrlika, Vrpolje, Vrsi, Vuka, Vukovar,
Zagorska Sela, Zagvozd, Zaàblje, Zdenci, Zmijavci, @akanje and @umberak.
III. group of local self-government units with development index between
Bedekov~ina, Bedenica, Beretinec, Bibinje, Bilice, Bistra, Bjelovar, Blato, Brckovljani,
Brezni~ki Hum, Brod Moravice, Cerovlje, âbar, êpin, Daruvar, Dekanovec, Dicmo,
Donja Dubrava, Donja Stubica, Donji Kraljevec, Donji Miholjac, Donji Vidovec,
Dragani}, Dubravica, Dubrova~ko primorje, Duga Resa, Dugi Rat, \elekovo, \
ur|evac, \urmanec, Galovac, Gori~an, Gornji Kneginec, Gospi}, Gra~i{}e, Gradac,
Gro`njan, Hra{}ina, Hum na Sutli, Ivanec, Ivani}-Grad, Jakovlje, Jalàbet, Janjina,
Jasenice, Jelenje, Jelsa, Jesenje, Kalinovac, Karlovac, Karoj-ba, Ka{tela, Klanjec, Klenovnik, Klin~a Sela, Klis, Klo{tar Ivani}, Komià, Konj{~ina, Koprivni~ki Ivanec, Kor~ula,
Kraljevec na Sutli, Krapina, Krapinske Toplice, Kra{i}, Kravarsko, Kri`, Krièvci, Kumrovec, Kutina, Lani{}e, Le}evica, Lekenik, Lepoglava, Lipovljani, Lovinac, Ludbreg,
Luka, Lumbarda, Ljube{}ica, Ma~e, Marija Bistrica, Marija Gorica, Marina, Maru{evec,
Metkovi}, Mljet, Molve, Motovun, Mrkopalj, Na{ice, Nedeli{}e, Nereì{}a, Novi Golubovec, Novi Marof, Novigrad Podravski, Ogulin, Okrug, Omi{, Oprtalj, Opuzen,
Orahovica, Orebi}, Oroslavje, Ozalj, Pako{tane, Pa{man, Peru{i}, Petrijanec, Pirovac,
Pisarovina, Plitvi~ka Jezera, Plo~e, Podravske Sesvete, Podstrana, Pojezerje, Popova~a,
Poèga, Pregrada, Prelog, Primorski Dolac, Privlaka (Zadar county), Pu~i{}a, Pu{}a,
Radoboj, Ravna Gora, Raànac, Rugvica, Seget, Selca, Senj, Sinj, Sisak, Slavonski
Brod, Smokvica, Sra~inec, Starigrad, Strahoninec, Su}uraj, Suko{an, Sveta Marija,
Sveti Filip i Jakov, Sveti Ilija, Sveti Ivan Zelina, Sveti Juraj na Bregu, Sveti Kri` Za~retje,
Sveti Martin na Muri, Tinjan, Tkon, Tribunj, Trnovec Bartolove~ki, Trpanj, Tuhelj, ValThe Croatian Tax System
307
povo, Vara`dinske Toplice, Vela Luka, Velika Ludina, Veliki Bukovec, Veliko Trgovi{}e,
Vidovec, Vinica, Vinkovci, Virovitica, Viìnada, Vodice, Vrati{inec, Vrbovec, Vrbovsko,
Vrgorac, Zemunik Donji, Zlatar, Zlatar Bistrica and @upanja.
IV. group of local self-government units with development index between
Bakar, Barban, Ba{ka Voda, Biograd na Moru, Brdovec, Brela, Brtonigla, Buje, Buzet,
Crikvenica, âkovec, âvle, Delnice, Dugo Selo, Dugopolje, Fuìne, Hvar, Jastrebarsko, Kali, Kanfanar, Karlobag, Kastav, Ka{telir-Labinci, Klana, Konavle, Koprivnica,
Kraljevica, Kr{an, Kukljica, Labin, Lastovo, Li`njan, Lokve, Lopar, Lovran, Lupoglav,
Makarska, Mali Lo{inj, Mar~ana, Matulji, Milna, Mo{}eni~ka Draga, Murter, Nin, Novi
Vinodolski, Osijek, Pag, Pazin, Pi}an, Podgora, Postira, Povljana, Preko, Primo{ten,
Pula, Rab, Ra{a, Rijeka, Rogoznica, Sali, Samobor, Skrad, Solin, Split, Stari Grad,
Stubi~ke Toplice, Stupnik, Supetar, Sveta Nedelja (Istria County), Sveta Nedelja (Zagreb County), Sveti Lovre~, Sveti Petar u [umi, Svetvin~enat, [enkovec, [ibenik, [olta,
Tisno, Trogir, Tu~epi, Vara`din, Velika Gorica, Vinodol, Vis, Vi{kovo, Vi{njan, Vodnjan,
Vrbnik, Zabok, Zadar, Zadvarje, Zapre{i}, @minj and @upa dubrova~ka.
V. group of local self-government units with development index higher
than 125% compared to Croatian average:
Bale, Ba{ka, Bol, Cres, Dobrinj, Dubrovnik, Faàna, Funtana, Kolan, Kostrena, Krk,
Malinska-Duba{nica, Medulin, Novalja, Novigrad (Istria County), Omi{alj, Opatija,
Pore~, Punat, Rovinj, Sutivan, Tar-Vabriga, Umag, Vir, Vrsar and Zagreb.
308

The Croatian Tax System

Transcription

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