Non-resident become subject to reverse charge on B2B; customer must report transaction
Croatia is to modify the rules on applying the reverse charge on goods and services for non-residents from 1 January 2019.
Currently, any non-established businesses with or without a Croatian VAT number must not charge VAT on domestic supplies of goods or services to a business customer. Instead, they should use the reverse charge and allow their customer to account for the VAT under the reverse charge.
This is now being modified so that where the foreign business has a local VAT number for other reasons, it should charge and collect local VAT. This can then be reported via their monthly VAT return.
Calculate or verify reverse charge VAT / GST calculations on individual or batch transactions with our Advisor and Auditor services.
EU VAT General and Domestic Reverse Charge rule by country
| Country | General RC (art 194) | Domestic Reverse Charge (art 199) | ||||||
| Domestic goods * | Immoveable Property | Installation | Construction | Scrap metal | Mobile Phones | Gas & electricity | Carbon Trading | |
| Austria | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Belgium | Yes | Yes | Yes | Yes | - | - | Yes | Yes |
| Bulgaria | - | - | Yes | - | Yes | - | Yes | - |
| Croatia | Yes | Yes | Yes | Yes | Yes | - | Yes | Yes |
| Cyprus | - | - | Yes | Yes | Yes | Yes | Yes | - |
| Czech Republic | Yes | - | Yes | Yes | Yes | Yes | Yes | Yes |
| Denmark | - | - | Yes | - | Yes | Yes | Yes | Yes |
| Estonia | Yes | Yes | Yes | - | Yes | - | Yes | - |
| Finland | Yes | - | Yes | Yes | Yes | - | Yes | Yes |
| France | Yes | - | Yes | Yes | Yes | - | Yes | Yes |
| Germany | - | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Greece | Yes | - | - | - | Yes | Yes | Yes | Yes |
| Hungary | - | Yes | Yes | Yes | Yes | - | Yes | Yes |
| Ireland | - | Yes | Yes | Yes | Yes | - | Yes | Yes |
| Italy | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Latvia | - | - | Yes | Yes | Yes | Yes | Yes | - |
| Lithuania | Yes | - | Yes | Yes | Yes | - | Yes | - |
| Luxembourg | - | - | - | - | - | Yes | Yes | Yes |
| Malta | Yes | - | Yes | Yes | - | - | Yes | - |
| Netherlands | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Poland | Yes | - | Yes | Yes | - | - | Yes | Yes |
| Portugal | Yes | Yes | Yes | Yes | Yes | - | Yes | Yes |
| Romania | Yes | Yes | Yes | - | Yes | Yes | Yes | Yes |
| Slovakia | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Slovenia | Yes | Yes | Yes | Yes | Yes | - | Yes | Yes |
| Spain | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Sweden | Yes | - | Yes | Yes | Yes | Yes | Yes | Yes |
| Non-EU | ||||||||
| Norway | - | - | - | - | - | - | - | - |
| Switzerland | Yes | - | Yes | - | - | - | Yes | - |
| UK | - | - | Yes | - | - | Yes | Yes | Yes |
| * Further local rules on the VAT status of the supplier and their customer need to be considered to determine if RC applies | ||||||||
