On 12 July 2022 a Council Regulation of (EU) 2022/1207 was issued amending Regulation (EC) No 974/98 regarding the introduction of the Euro in Croatia from 1 January 2023. A fixed conversion rate between the Kuna and Euro has been confirmed, being set at 1 € = 7.53450 kn.
Based on the communication from the Croatian tax authority, we understand the first settlement period in the new currency will be January 2023 or the 1st quarter of 2023 for Motor IPT and the Croatian Fire Brigade Charge respectively. Both taxes apply equally to insurers operating on a Freedom of Services basis as they do to those established in Croatia.