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Invoicing from Croatia

Croatian VAT (Porez na dodanu vrijednost) guide for service businesses

25%

Standard Rate

13%

Reduced Rate

HR

VAT Prefix

PDV

Local Name

VAT Registration in Croatia

In Croatia, VAT is called PDV (Porez na dodanu vrijednost). Registration is handled through the Porezna uprava (Tax Administration), part of the Ministry of Finance. Your VAT number is based on your OIB (Osobni identifikacijski broj), the 11-digit personal identification number used across all Croatian government systems.

Croatia joined the eurozone on 1 January 2023, adopting the euro (EUR) as its official currency, replacing the Croatian kuna (HRK). All invoices must now be denominated in EUR.

Small Business Exemption

Croatia offers a VAT exemption for businesses with annual turnover below €60,000. Under this regime, you do not charge PDV on your invoices, but you also cannot deduct input VAT on purchases.

If your turnover exceeds the threshold, you must register for VAT and begin charging PDV. You can also register voluntarily below the threshold if it benefits your business (for example, to reclaim input VAT).

Fiskalizacija (Fiscal Cash Register)

Croatia operates a fiscal cash register reporting system called fiskalizacija. Currently, fiskalizacija covers cash transactions, which must be reported to the Tax Administration and include a unique identification code (JIR or ZKI). B2G e-invoicing is handled separately via the eRacun platform. An extension to all B2B transactions (Fiskalizacija 2.0) is planned. Your invoicing software must support the fiskalizacija protocol to operate legally in Croatia.

VAT Rates

Croatia has one of the highest standard VAT rates in the EU at 25%:

Rate type	Percentage
Standard	25%
Reduced	13%
Second reduced	5%

For the full list of reduced rate categories, see the European Commission VAT rates reference.

Invoice Requirements (Racun)

Croatian invoices (racuni) must contain the following mandatory elements under the VAT Act (Zakon o porezu na dodanu vrijednost):

Your details

1 Full business name and registered address

2 OIB (11-digit identification number)

3 HR VAT number (for EU transactions)

Client details

4 Client's full name and address

5 Client OIB or VAT number (if EU B2B)

Invoice details

6 Invoice date (datum izdavanja)

7 Sequential invoice number

8 Service or delivery date

9 Description of services or goods

Amounts

10 Net amount (osnovica)

11 PDV rate and PDV amount

12 Total amount including PDV

Important: Fiskalizacija codes on invoices

Every cash-transaction invoice issued by a Croatian business must include either a JIR (Jedinstveni identifikator racuna) received from the Tax Administration after real-time reporting, or a ZKI (Zastitni kod izdavatelja) if the connection to the Tax Administration is temporarily unavailable. These codes prove the invoice has been fiscalised.

Cross-Border Invoicing

To EU Businesses (B2B)

When invoicing a VAT-registered business in another EU country, apply the reverse charge. Invoice at 0% PDV with both your HR VAT number and the client's VAT number.

Required invoice note

"PDV obracunava primatelj" (Reverse charge – Art. 196, Directive 2006/112/EC)

Include both your HR VAT number and the client's VAT number. Report in your ZP (Zbirna prijava) return.

To EU Consumers (B2C)

For most services to EU consumers, charge Croatian PDV (25%). For digital services, OSS rules may apply — you would charge the destination country's VAT rate and report through the OSS scheme.

Outside the EU

B2B services to clients outside the EU are outside the scope of Croatian PDV. Invoice without VAT.

Required invoice note

"Usluga nije oporeziva PDV-om u RH" (Service not subject to Croatian VAT)

How Invoxo handles this

Invoxo validates EU VAT numbers via VIES automatically when you add a client. Based on the result, it applies the correct treatment — reverse charge for valid EU business clients, standard Croatian PDV for domestic sales. The correct invoice notes, including "PDV obracunava primatelj", are added automatically.

Learn more about reverse charge →

VAT Returns and Reporting

Croatian VAT returns (PDV obrazac) are filed monthly by default, due by the 20th of the month following the reporting period. Smaller businesses may qualify for quarterly filing if their annual turnover is below a certain threshold.

Businesses with intra-EU transactions must also file a ZP (Zbirna prijava) recapitulative statement, summarising all reverse charge supplies and acquisitions with other EU member states.

Croatian VAT Number Format

Croatian VAT numbers follow the format: HR + 11 digits (the OIB).

Example

HR12345678901

Note: The 11-digit number is the OIB (Osobni identifikacijski broj), which is used as a universal identifier across all Croatian government systems. The HR prefix is added for EU VAT purposes in cross-border transactions. Both businesses and individuals have an OIB.

Common questions

What is fiskalizacija and is it mandatory? ⌄

Fiskalizacija is Croatia's real-time fiscal reporting system. Every invoice must be reported to the Tax Administration electronically and must include a JIR (unique identifier code) or ZKI (protective code). It is mandatory for all businesses issuing invoices in Croatia.

Does Croatia use the euro? ⌄

Yes. Croatia adopted the euro (EUR) on 1 January 2023, replacing the Croatian kuna (HRK). All invoices must now be denominated in EUR. The transition period for dual display of prices has ended.

What does "PDV obracunava primatelj" mean? ⌄

"PDV obracunava primatelj" is the Croatian term for reverse charge, meaning the recipient accounts for the VAT. This note must appear on invoices to EU business clients where the reverse charge mechanism applies.

What is the small business threshold in Croatia? ⌄

The VAT registration threshold in Croatia is EUR 60,000 in annual turnover. Businesses below this threshold can opt out of charging PDV but cannot reclaim input VAT. You can register voluntarily if input VAT recovery is beneficial.

Disclaimer: This guide covers common scenarios for service businesses invoicing from Croatia. For complex situations, confirm requirements with a Croatian tax adviser (porezni savjetnik).