On October 18, 2021, the Tax Administration of the Ministry of Finance issued a new opinion regarding the countries with which the Republic of Croatia has confirmed reciprocity in the area of VAT refunds to foreign taxpayers. We convey the opinion in its entirety.
The Tax Administration notes that on 1 July 2013, upon the accession of the Republic of Croatia to the European Union, the provisions of Articles 68 to 73 of the Value Added Tax Act (Official Gazette 73/13, 99/13, 148/13, 153/13, 143/14, 115/16, 106/18, 121/19 and 138/20) on VAT refunds to taxpayers from the other Member States of the European Union, who submit requests for VAT refunds through the tax administrations of the countries the Member States in which they are established and reciprocity is no longer established from 1 July 2013.
Below is an overview of countries that have been confirmed reciprocity in the area of VAT refunds to foreign taxpayers.
| COUNTRY | CONFIRMED RECIPROCITY |
|---|---|
| Third Countries | |
| Swiss Confederation | from 01.01.2011. |
| Republic of Serbia | from 02.05.2012. do 07.10.2015. limited range from 08.10.2015. full range* |
| United Kingdom of Great Britain and Northern Ireland | from 01.06.2012. to 30.06.2013. from 01.01.2021.** |
| Member States of the European Union | |
| The Federal Republic of Germany | from 01.01.2010. |
| The Republic of Slovenia | from 01.07.2011. |
| The Republic of Poland | from 01.06.2012. |
| The Republic of Finland | from 18.12.2012. |
| Kingdom of the Netherlands | from 07.03.2013. |
* reciprocity in the area of VAT refunds with the Republic of Serbia was established to a limited extent from 2 May 2012 to 7 October 2015 for supplies of goods or services related to the exhibition at fairs, and full reciprocity with the Republic of Serbia was established from 8 October 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. In the period 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.
Also, the Tax Administration notes that at the end of the transitional period, from January 1, 2021, the VAT refund paid by a taxpayer based in the United Kingdom in the Republic of Croatia may be realized following the VAT refund procedure for third countries based on confirmed reciprocity in VAT refunds.
