As of April 10, 2023, the Republic of Croatia has confirmed Reciprocity with Turkey regarding the VAT refund to foreign taxpayers.
A list of countries with confirmed Reciprocity in VAT refunds to foreign taxpayers
The Republic of Croatia has confirmed Reciprocity in VAT refunds to foreign taxpayers with the following countries:
- Swiss Confederation – from January 1, 2011
- The Republic of Serbia – from May 2, 2012, to October 7, 2015, in a limited range, and from October 8, 2015, in full range
- United Kingdom of Great Britain and Northern Ireland – from June 1, 2012, to June 30, 2013, and from January 1, 2021
- Republic of Turkey – from April 10, 2023
Reciprocity in the area of VAT refunds with the Republic of Serbia was established to a limited extent from May 2, 2012, to October 7, 2015, for supplies of goods or services related to the exhibition at fairs, and full Reciprocity with the Republic of Serbia was established from October 8 2015.
The United Kingdom ceased to be a member of the European Union on February 1, 2020. In the relations between the European Union and the United Kingdom from February 1, 2020, to December 31, 2020, a transitional period was applied, in which the rules and procedures for taxation and customs remained the same as before, explains the Tax Administration. From July 1, 2013, to December 31, 2020, taxpayers established in the United Kingdom exercised their right to a VAT refund following the VAT refund procedure for the Member States of the European Union. After the transitional period, starting from January 1, 2021, the VAT refund paid by a taxpayer based in the United Kingdom in the Republic of Croatia can be obtained by the procedure for VAT refund to third countries, based on confirmed Reciprocity in VAT refund.
Reciprocity in VAT refund with the Republic of Turkey is established in the following range: for the supply of goods and services exclusively related to participation in fairs and exhibitions, as well as for expenses related to fuel, spare parts, highway tolls, maintenance, and repairs related to road transport. We emphasize that taxpayers engaged solely in occasional international passenger road transport cannot claim a VAT refund under this procedure.
