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Regulations

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Croatia

VAT and charter activity - "Use and Enjoyment "June 2017

Use and enjoyment

Is VAT due on charter fees?
Yes, it is.
 
What is the VAT rate?
The standard rate in Croatia is 25%. VAT on charter fees is reduced to 13%.
 
When is VAT charged on charter fees in Croatia?
As of May 2017, VAT is due in two cases. On all charters starting in Croatia and on the number of days spent in Croatia if the charter starts outside the EU.
With regards to charters starting outside the EU, if the contract was signed and the fees paid before May 1, 2017, no VAT is due on the fees.
 
Is VAT due if the charter starts in another EU country?
No, VAT is due in the place where the yacht is made available to charterer.
 
Is VAT charged on delivery and redelivery fees?
No. 
 
Can the taxable amount for VAT purposes be reduced if the yacht cruises on the high seas?
No, there is no reduction for international voyages.
 
Do I need to advise the VAT representative about all charter contracts in advance?
Yes, the VAT representative must be up to speed. The representative issues invoice/s for the charter fees and is responsible for collecting and paying the VAT on the fees to the tax agency.
 
Can input VAT be reclaimed by the owning company?
No.