Croatia to force foreign passenger transporters to register for VAT

Sat 14th Jun 2014

Croatia is to join the growing number of EU countries which requires foreign passenger carries to register for VAT when carrying fare-paying customers within the country. German VAT registration and Belgian VAT registration is already similarly required in the appropriate situation.

Croat VAT registration

Non-resident providers of road passenger services from the start of June 2014 must apply for a VAT number, and make a calculation of subject to Croat VAT based on the fare and proportion of the travel in Croatia. This is then multiplied by the Croat VAT rate, currently 25%. The VAT charged should then be declared in a monthly return, plus an annual VAT declaration. Companies may apply for a temporary VAT number where the trip is a one-off.

Non-EU companies will also be required to appoint a fiscal representative, which is responsible for their VAT compliance and can be held financially liable for any errors or omissions.