VAT Threshold in Croatia 2026
When your annual turnover crosses 60,000 EUR, you must register for VAT (PDV) in Croatia. This guide explains how to calculate your threshold, when to register, and what voluntary registration means for your business.
Current VAT Threshold
60,000 EUR
Annual turnover threshold for mandatory VAT (PDV) registration
Under the Zakon o porezu na dodanu vrijednost (VAT Act), any business or self-employed person whose taxable supplies exceed 60,000 EUR in a calendar year must register for VAT with the Croatian Tax Administration (Porezna uprava).
This threshold was set by the amendments to the VAT Act published in NN 152/2024, effective from 1 January 2025. It replaced the previous threshold that was in effect since Croatia adopted the euro in 2023. It applies equally to sole traders (obrt), companies (d.o.o.), and other legal forms.
How to Calculate Your Turnover
The threshold is based on the total value of taxable supplies delivered during a calendar year (1 January to 31 December). Here is what counts and what does not.
Included in the calculation:
- All taxable supplies of goods and services within Croatia
- Supplies that would be taxable but are performed by a non-VAT payer
- Intra-community supplies (with certain conditions)
Excluded from the calculation:
- Sales of fixed business assets (capital goods)
- Exempt supplies without the right to deduct (e.g., certain financial services)
- Real estate transactions that are exempt under the VAT Act
If you are unsure whether specific transactions count toward the threshold, consult the Porezna uprava or a licensed tax advisor.
When to Register
Once your taxable supplies exceed 60,000 EUR during a calendar year, you must submit a registration application to the Porezna uprava. The key deadlines are:
Notification deadline
You must notify Porezna uprava that you have exceeded the threshold by submitting form P-PDV. This should be done promptly after the threshold is crossed.
VAT obligations begin
Under Art. 90 of the VAT Act (NN 152/2024), the threshold is assessed based on the previous calendar year's domestic taxable supplies. If exceeded, you become a VAT payer from 1 January of the following year. From that point, you must charge VAT on your invoices and file periodic VAT returns.
Filing frequency
Most newly registered VAT payers file monthly returns (PDV obrazac) by the 20th of the following month. Quarterly filing may be available for businesses with turnover below certain thresholds.
Voluntary Registration
Businesses below the 60,000 EUR threshold can register for VAT voluntarily. While this means charging VAT on your invoices, it comes with several advantages.
- Input VAT recovery: You can deduct VAT paid on business purchases, which can be significant if you have high operational costs or capital investments.
- B2B credibility: Many businesses prefer working with VAT-registered suppliers because they can recover the input VAT on your invoices.
- EU trade: A Croatian VAT ID is required for intra-community transactions. If you sell to clients in other EU countries, voluntary registration simplifies cross-border invoicing.
Note: voluntary registration commits you to remaining in the VAT system for at least 5 calendar years (including the year of registration).
EU Context: How Croatia Compares
VAT thresholds vary widely across EU member states. Croatia's 60,000 EUR threshold is among the higher ones in the region, reflecting the country's approach to reducing administrative burden on small businesses.
| Country | Threshold | Notes |
|---|---|---|
| Croatia | 60,000 EUR | Effective from 1 January 2025 (NN 152/2024) |
| Germany | 22,000 EUR | Kleinunternehmerregelung |
| France | 36,800 EUR | Services (85,800 EUR for goods) |
| Italy | 85,000 EUR | Regime forfettario |
| Slovenia | 50,000 EUR | Neighboring country comparison |
| Austria | 35,000 EUR | Kleinunternehmerregelung |
The EU's VAT in the Digital Age (ViDA) initiative may introduce further harmonization of thresholds and reporting requirements across member states in the coming years.
Track your VAT threshold automatically
FiskAI monitors your cumulative turnover and alerts you as you approach the 60,000 EUR threshold. Use our free PDV calculator to check where you stand right now.
Sources
- Zakon o porezu na dodanu vrijednost (NN 73/13, 152/24)
- Porezna uprava, Republic of Croatia, Ministry of Finance
- European Commission, VAT thresholds (accessed March 2026)