Croatian VAT returns

Once registered for value added tax (VAT, locally porez na dodanu vrijednost, PDV) in Croatia, businesses must declare all taxable transactions and remit any VAT due to the Croatian Tax Administration (Porezna uprava).

Croatian VAT returns are typically filed monthly. However, some smaller taxpayers may be permitted to file quarterly returns at the discretion of the Croatian Tax Administration, depending on turnover and compliance history. Returns frequency is communicated to the taxpayer when issuing the VAT registration details. 

VAT returns must generally be submitted by the 15th day of the month following the end of the reporting period.

Payments of any VAT due should also be made by the same deadline as the return submission.

The standard form used for VAT reporting is the PDV‑R return.

VAT‑registered businesses must maintain comprehensive VAT records, including:

• Sales and purchase invoices 
• Import and export documentation
• Accounting records and journals supporting VAT entries 
• Electronic records that meet Croatian accounting and recordkeeping standards 

These records must be retained for 10 years and be available for inspection by the Croatian Tax Administration. 

VAT payments are due on the same date that the VAT return is due (i.e., by the 15th day of the month following the reporting period).

Late payments may attract interest and penalties under Croatian VAT law.

Input VAT may be reclaimed on goods and services used for taxable business activities, including:

• Goods purchased for resale
• Capital assets and business equipment
• Professional services and utilities used in the business
• Import VAT on goods for business use
• Pro rata deductions for mixed‑use expenses such as travel or telecoms

No deduction is allowed for private or non‑business expenses. 

Foreign businesses may recover Croatian VAT under the EU VAT refund procedure (for EU‑established entities) or the non‑EU refund procedure, subject to eligibility and documentation requirements. 

All VAT returns must be submitted electronically via the Croatian Tax Administration’s online portal (e-Porezna) or other systems specified by the Tax Administration. 

VAT payments are made via bank transfer using the payment instructions provided by the Tax Administration. 

Penalties may apply for VAT noncompliance, including: 

• Late filing penalties for overdue VAT returns
• Interest on late VAT payments
• Additional penalties for incorrect or fraudulent returns or omissions

The Croatian Tax Administration publishes guidance on penalty amounts and interest rates, which may vary over time.

If input VAT exceeds output VAT for a given period, the resulting credit may be:

• Carried forward to offset future VAT liabilities, or 
• Refunded under Croatia’s refund procedures

Refunds are typically processed once the Tax Administration has reviewed the return and supporting records. Delays can occur if additional documentation is needed or if the Tax Administration conducts an audit.