This blog was last updated on June 27, 2021
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.
