Tax changes reminder

Crowe Croatia
2/14/2019

NEW DEFAULT INTEREST RATE

The new default interest rate which is charged by the Tax Authorities for untimely payments has been published for the period from 1 January until 30 June 2019 and it amounts to 6.54% per annum.

SUBMISSION OF BOOK OF INCOMING INVOICES

We kindly remind you that from 1 February 2019 taxpayers who are registered for VAT purposes are obliged to submit their Book of incoming invoices (so called Knjiga U-RA) along with monthly VAT returns. This form may be submitted electronically via ePorezna portal, in accordance with the instructions, issued by the Tax Authorities (LINK).

PROHIBITION OF REVERSE CHARGE

Foreign taxpayers who have Croatian VAT ID numbers are no longer able to apply reverse charge mechanism on domestic supplies to local recipients/taxpayers. On such supplies they must calculate Croatian VAT.

BUS OPERATORS

From 1 January 2019 foreign bus operators are obliged to submit their Registration of Services of International Road Transport of Passengers (so called MCP form) for the months in which the transport of passengers will be carried out in the Republic of Croatia; indicating on the form the date of transport in the Republic of Croatia, registration plate number and transit route through the Republic of Croatia. The submitted MCP Form, as well as personal identification number (“OIB”) certificate and the Decision on the VAT ID Number, must be kept in the vehicle which is transporting passengers on the territory of the Republic of Croatia.

NEW AMOUNT OF FLAT-RATE TAX ON RENT

By the date of January 31st, local self-government units were required to bring a decision on the amount of flat-rate tax per bed or per accommodation unit in the camp they charge. Fees cannot be less than HRK 150 nor exceed HRK 1,500. If such a decision has not been rendered within the prescribed deadline, the amount of flat-rate tax amounts to HRK 750.

NEW JOPPD FORM

Tax Authorities released new, extended version of the JOPPD form which includes new codes (LINK).

DEADLINE FOR SUBMISSION OF PERSONAL INCOME TAX RETURN

We remind you that deadline for submission of Annual Personal Income Tax return, i.e. ZPP-DOH and INO-DOH form, expires on 28 February 2019.