Croatia VAT Guide 2026 — PDV System

Q: What is the VAT rate in Croatia?

Standard 25%, reduced 13% (tourism/food), super-reduced 5% (bread, milk, books, medicines), 0% exports.

Q: What is the PDV registration threshold?

EUR 40,000 annual turnover. Voluntary registration is available below the threshold.

Q: How does e-invoicing work in Croatia?

B2B invoices must be reported via ePDV within 5 days of issuance for real-time VAT cross-checking by the Tax Administration.

Q: What VAT rate applies to tourism?

13% reduced rate for accommodation and food services, reflecting tourism's 20%+ share of Croatian GDP.

Croatia's value-added tax (PDV, porez na dodanu vrijednost) follows EU VAT directives. The standard rate is 25% — one of the higher standard rates in the EU. Reduced rates of 13% apply to tourism, accommodation, and food services, while 5% applies to basic necessities like bread, milk, books, and medicines. Exports and intra-EU supplies are 0%. PDV is administered by Porezna uprava, and Croatia has fully implemented e-invoicing (ePDV) since 2019.

PDV Rates 2026

Croatia applies four VAT rates under EU law:

25% standard rate — most goods and services (electronics, clothing, vehicles, professional services, alcohol, soft drinks)
13% reduced rate — tourism services (accommodation, camping), food and catering services (restaurants, prepared meals), water supply, waste management, funeral services, periodicals, nursery/kindergarten services, cultural events
5% super-reduced rate — bread, milk, baby food, books (including e-books), medicines and medical devices, scientific journals, theatre and concert tickets, fuel for heating (natural gas, firewood), agricultural inputs (seeds, fertilisers)
0% rate — exports of goods, intra-EU supplies, international transport, supplies to diplomatic missions and international organisations

The tourism sector benefits significantly from the 13% rate — one of the most favourable VAT treatments for tourism in the EU, reflecting the industry's importance (20%+ of Croatian GDP).

Registration Thresholds

Businesses must register for PDV if their annual taxable turnover exceeds EUR 40,000 (HRK 300,000 equivalent) in the previous or current calendar year. Small businesses below the threshold may choose to register voluntarily, which allows them to deduct input VAT but also requires them to charge output VAT. Non-resident businesses making taxable supplies in Croatia must register for PDV regardless of turnover (with no threshold). The PDV registration number follows the format HR12345678901 (HR + 11 digits, OIB). Mandatory registration applies from the first day of the month following the month in which the threshold was exceeded.

E-Invoicing (ePDV)

Croatia operates a mandatory e-invoicing system (ePDV) introduced in 2019. All invoices issued between VAT-registered taxpayers (B2B) must be reported to the Tax Administration in real time through the ePDV system. Invoices must be issued within 15 days of the taxable event and reported within 5 days of issuance. The system allows the Tax Administration to perform real-time cross-checking of input and output VAT, significantly reducing VAT fraud. E-invoicing is done through the Tax Administration's free online portal (ePorezna) or through certified third-party software. Failure to report invoices on time can result in fines of EUR 1,000 to EUR 20,000.

VAT Returns and Filing

PDV returns (obrazac PDV) are filed monthly or quarterly depending on the taxpayer's annual turnover. Monthly filing is required for taxpayers with annual turnover exceeding EUR 80,000. Quarterly filing is available for smaller businesses. The PDV return is due by the 20th day of the following month (for monthly filers) or the 20th day after the end of the quarter (for quarterly filers). Payment of any VAT due must be made by the same deadline. Late filing penalties start at EUR 200 and increase for repeated violations. VAT refunds for excess input VAT are generally processed within 30 days.

Special Tourism VAT Rules

Given tourism's outsized role in the Croatian economy, special VAT rules apply: accommodation services (hotels, campsites, holiday rentals) at 13%; restaurant and catering services at 13%; tour operator services under the tour operators' margin scheme (special EU scheme); agency services supplied to non-resident tour operators fall under anti-abuse rules; private accommodation renters (sobe, apartmani) may use a flat-rate lump-sum taxation scheme (paušalni obrt) combining PDV and IIT. The 13% rate for tourism is significantly below the 25% standard rate and is a deliberate policy to maintain Croatia's competitiveness as a Mediterranean tourism destination.

FAQs

What is the VAT rate in Croatia?

The standard PDV rate is 25%. Reduced rates of 13% (tourism, food services) and 5% (bread, milk, books, medicines) apply. Exports are 0%.

What is the PDV registration threshold?

Businesses must register for PDV when annual taxable turnover exceeds EUR 40,000. Voluntary registration is available below the threshold.

How does e-invoicing work in Croatia?

All B2B invoices must be reported to the Tax Administration via the ePDV system within 5 days of issuance. The system enables real-time VAT cross-checking.

What VAT rate applies to tourism?

Accommodation and food services benefit from the 13% reduced rate, reflecting tourism's importance to the Croatian economy (20%+ of GDP).