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.
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