Special taxation procedure for services and distance selling of goods

On 18 May 2021, the Tax Authorities published on its website explanations on special taxation procedure for services and distance selling of goods.

Namely, the EU Member States have the obligation to adjust their national legislation in the field of VAT with the provisions of Council Directive (EU) 2017/2455 and Council Directive (EU) 2019/1995 which are applying from July 1, 2021 which was the reason for amendments of the Value Added Tax Act.

Please note that taxpayers can apply for the application of special procedure as of April 1, 2021, although amendments to the VAT Act will enter into force on July 1, 2021. Taxpayers who do not choose to apply for a special procedure are required to register for VAT purposes in each Member State where the place of taxation of the supplies they make is located.

Registration of users for the purposes of using a special taxation procedure is done in a way so that potential users-taxpayers themselves have access to the portal of the Tax Authorities of the Republic of Croatia where they fill out a form with the required information about their company. After filling out the form, potential users apply for registration. The application is stored in the database and awaits the approval of the Tax Authorities officer. If the Tax Authorities officer approves the request, the user will receive an approval notification by e-mail, as well as a username and password. In case of rejection of the request, the Tax Authorities will issue a decision rejecting it and deliver it by ordinary post to the taxpayer.

The registration portal for the usage of a special taxation procedure is available HERE.

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