Every company that wants to do business (buying or selling) on the territory of the EU needs to obtain a VAT ID number, which is often called a VAT number or a VIES number (VIES VAT ID number confirmation). Obtaining a Croatian VAT ID number is obtained by submitting the P-VAT form to the tax administration, it can be submitted online and submitted by an authorized person, usually an accountant.
The number is assigned by the tax administration within 24 hours. And if the company is new and owned by a foreigner, things are not so simple. By obtaining the VAT ID number, we are registered in the VIES database. All companies from Europe access the database. If you are not in the database, they charge you VAT on your bills, and if you are in the database, they don’t charge it, but instead they transfer the tax liability (aka. the reverse charge). If you are not in the VAT system on such a bill (reverse charge), you must calculate the VAT (of the EU country where you do business) and pay them.
However, if the new company is owned by a foreign person (not a resident) and if the new company wants to operate on the European market, obtaining a VAT ID or VAT number can be much more difficult. The Tax Administration of the Republic of Croatia always requests the following documentation:
Tax administration questionnaire (filled in papers)
Offer from the supplier
Offer for the customer
Agreement on purchase and sale (cooperation)
Address lease agreement Warehouse/office lease agreement
Statement on the number of employees
- All of these documents must be translated to croatian, and delivered to the Tax administration including a P-VAT request.
~ Tax administration questionnaire ~
Article made by the marketing team with the assistance of Laura Gergelj
Comments