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Croatian Parliament Approves Bill to Increase VAT Threshold, Introduce EU Small Business Scheme, and Expand Access to VAT Refunds for Non-EU Businesses

26 December 2024

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Approved Changes

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Croatia

The Croatian parliament has approved the Bill on Amendments to the Value Added Tax Act. One of the main measures is an increase in the VAT registration threshold from EUR 40,000 to EUR 60,000, which is higher than the originally proposed EUR 50,000. Considering the increased threshold, currently registered taxpayers can file a request by 15 January 2025 to deregister. In connection with this, measures are introduced for the EU small business scheme for cross-border supplies. This includes that a taxable person established in another EU Member State can apply the VAT registration exemption in Croatia if their annual turnover...