Croatia introduced its value‑added tax (VAT) system in 1993, following its integration with the European Union (EU) VAT framework upon joining the EU. As an EU member state, Croatia’s VAT regime is fully aligned with EU VAT principles and standards.
Croatian VAT (locally known as Porez na dodanu vrijednost, PDV) is governed by the Croatian VAT Act and related regulations and administered by the Croatian Tax Administration (Porezna uprava). The Tax Administration is responsible for issuing guidance, processing VAT registrations and returns, and enforcing compliance with Croatian VAT laws.
Businesses carrying out taxable activities in Croatia — whether resident or nonresident — must comply with Croatian VAT obligations. This includes registering for VAT when required, applying the appropriate VAT rates, issuing VAT‑compliant invoices, maintaining records, and filing periodic VAT returns.
