Croatian Ministry of Finance Issues Guidance on Place of Supply Rules

Kaitlyn Smethurst
June 13, 2017

The Croatian Tax Administration has recently published its response to a query about place of supply rules and VAT liability on a Dutch taxpayer’s sales. The Dutch taxpayer holds a VAT identification number in Croatia but does not have physical presence within the country.

The conclusions made in this guidance by the Tax Administration are as follows. When the supplier uses its Croatian identification number to make a supply of goods to a purchaser located inside Croatia, the purchaser will be liable to remit the VAT via a reverse charge. However, if the Croatian registered supplier is making a supply of goods to a purchaser located in an EU-member state, no VAT should be charged. Finally, if the Croatian registered supplier is making a supply of goods to a purchaser in a non-EU country, the transaction should be treated as an export for VAT purposes.

For additional information, please see the guidance made available on the Tax Administration’s website, found here

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Author

Kaitlyn Smethurst

Katie Smethurst is a Regulatory Counsel at Sovos. Within Sovos’ Regulatory Analysis function, Katie focuses on global sales tax and VAT issues, supporting both the tax determination and reporting engines. Katie received her B.A. in International Relations and Spanish from Roger Williams University and her J.D. from Suffolk University Law School. She is a member of the Massachusetts and New Hampshire Bars.
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