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Welcome to the EU Croatia

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The VAT People - Expert Author

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3rd July 2013

The entry of Croatia to the EU on 1st July 2013 has ramifications for businesses trading with Croatia and detailed below is a summary of some of them.

As Croatia is now a fully fledged member of the EU it means that any businesses trading with Croatia have to treat purchases and sales under EU trade rules. In practical terms this means:-

  • Goods sold to Croatian businesses can be zero rated subjected to the customer being VAT registered and sufficient export documentation being held - remember there is no need for Customs documentation for exports to Croatian. Sales will need to be recorded on EC Sales Lists and as appropriate on Intrastat forms. Croatian sales will therefore count towards Intrastat threshold
  • The purchase of goods from Croatia will be subject to Acquisition Tax and again possible Intrastat - no Customs documentation will be needed for imports from Croatia
  • Anyone selling retail or over the internet to Croatian consumers will need to think about Distance Sales to Croatia - the Croatian threshold is circa 35,000 per annum
  • The treatment of services should remain largely unaffected

Therefore any businesses dealing with Croatia will need to take into account the change in Croatia's status as there are now different requirements. Of course we will be pleased to assist with any queries any business has


About the Author

The VAT People are leading VAT and Customs Duty consultants based in the North West of England. We work with a wide range of businesses throughout the UK as well as assisting our accountancy colleagues to unravel the thorny VAT issues for their clients. We are one of the UK's largest and most comprehensive sources of VAT and Customs advice, our consultancy team having over 140 years of experience in VAT and Customs gained in either HMRC or a Big 4 accountancy practice environment.

Call us on our VAT helpline 0800 077 4604 to discuss. All initial discussions are free with no-obligation.



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Article Published/Sorted/Amended on Scopulus 2013-07-04 15:24:44 in Tax Articles

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