1.1 VALUE ADDED TAX

THE TAXPAYER

1. An entrepreneur (natural person and legal entity) who delivers goods or renders services,

2. An importer (when importing goods inland, comprehending the introduction and reception and other forms of the imports of goods)

3. An exporter for export deliveries and value-added goods, including transport and all other transportation services that are not charged for in line with the regulations concerning foreign currency and foreign trade operations,

4. An issuer of an invoice if on the invoice for goods delivered or services rendered a separate entry for VAT is shown although the issuer is not authorised to do so,

5. A domestic entrepreneur for which a service is rendered by an enterprise the headquarters of which is abroad,

6. Exceptionally, bodies of the national government, bodies of national and local-self government, political parties, unions, chambers , if they undertake some business or other activities, and if the non-taxation of this activity would lead to unfair advantages (then the Tax Administration issues a ruling determining that they are taxpayers for this activity)

THE TAX BASE

The compensation for the goods delivered or the services rendered.

Value added tax is paid:

• on the delivery of all kinds of goods (products, goods, newly-built buildings, equipment and so on) and all services rendered inland for compensation,
• on own consumption ,
• on the delivery of goods and services rendered without compensation and with a personal discount,
• on the import of goods inland
• on services that a foreign entrepreneur performs for a domestic entrepreneur inland

THE TAX RATE

22% and 0 %

TAX REGULATIONS

The Value Added Tax Law (official gazette of RC Narodne novine no. 47/95, 106/96, 164/98, 105/99, 54/00, 73/00),

General Tax Law (official gazette of RC Narodne novine no.127/00, 86/01, 150/02),

Law on the Rights of Croatian Defenders from the Homeland War and of Members of their Families (official gazette of RC Narodne novine no.94/01, 122/02),

Law on Socially Encouraged House Building (official gazette of RC Narodne novine no.109/01),

Regulations on Value Added Tax (official gazette of RC Narodne novine no.60/96, 113/97, 7/99,112/99, 119/99, 44/00, 63/00, 80/00, 109/00, 54/01, 58/03),

General Agreement between the European Commission and the Government of the Republic of Croatia in connection with the participation of the Republic of Croatia in the European Community aid programmes (official gazette of RC “Narodne novine-Međunarodni ugovori” no. 8/02, 11/02),

Decision on compensation for part of the funds during the import of a passenger car in the amount of the value added tax paid for 2003 (official gazette of RC Narodne novine no.159/03),

Instruction on refund of value added tax paid on equipment for technological and scientific research projects imported or procured inland in 2003 (official gazette of RC Narodne novine no.96/03),

Instruction concerning obtaining customs and tax exemptions in accordance with article 13. of Annex A of the General Agreement between the European Commission and the Government of the Republic of Croatia in connection with the participation of the Republic of Croatia in the European Community aid programmes (official gazette of RC Narodne novine, no. 110/03).