Croatia raises its PDV small-business threshold from €40,000 to €60,000 from 2025
This page records one dated change. For the rules in Croatia as they stand today, see the Croatia guide →
- Jurisdiction
- Croatia
- Tax
- PDV
- Change type
- Threshold
- Status
- In force
- Impact
- Action required
- Announced
- 24 December 2024
- Effective
- 1 January 2025
- Instrument
- HR-ZAKON-2508-2024
- Authority
- Narodne novine (Official Gazette of the Republic of Croatia)
- Verified
- Fetched from official source · high confidence
Small businesses established in Croatia with annual domestic turnover up to €60,000, and businesses from other EU member states with Union turnover up to €100,000.
Croatia's PDV registration threshold is €60,000 annual domestic turnover (raised from €40,000). Businesses whose turnover exceeds this threshold must register for PDV. The same law implements the EU 2020/285 SME cross-border exemption scheme from 1 January 2025.
Croatia's Zakon o izmjenama i dopunama Zakona o porezu na dodanu vrijednost, published in Narodne novine NN 152/2024 on 24 December 2024 (passed by the Sabor 13 December 2024), raised the domestic PDV registration threshold from €40,000 to €60,000 annual turnover with effect from 1 January 2025. The same law transposed the EU SME scheme Directive 2020/285, enabling cross-border small-business VAT exemptions.
What changed in detail
The Zakon o izmjenama i dopunama Zakona o porezu na dodanu vrijednost, item 2508 in Narodne novine 152/2024 of 24 December 2024, rewrote Article 90 of the Croatian VAT Act with effect from 1 January 2025. The Hrvatski sabor adopted it on 13 December 2024.
Under the new Article 90:
- Paragraph 1: a taxable person established, resident or habitually resident in Croatia is exempt from PDV on domestic supplies if its annual domestic turnover did not exceed €60,000. The previous threshold was €40,000.
- Paragraph 2: a taxable person from another member state may use the same exemption if its annual Union turnover did not exceed €100,000 and its supplies in Croatia did not exceed €60,000.
The act lists Council Directive (EU) 2020/285 among the EU acts it transposes. That directive is the cross-border SME scheme.
Transitional Article 25 sets the switch-over:
- Taxpayers whose 2024 supplies exceeded €60,000 had to register for PDV from 1 January 2025.
- Those below €60,000 could apply by 15 January 2025 to be removed from the PDV register, unless they had registered voluntarily during 2024.
What it means
The €60,000 threshold is still in force. None of the later amendments to the VAT Act changed Article 90: NN 151/2025, NN 32/2026 and NN 48/2026. Turnover is tested per calendar year. A Croatian business near €60,000 needs to track it through the year, because crossing it ends the exemption.
For a non-resident, the threshold is not the end of the test. The €100,000 Union-turnover cap and the home member state’s notification procedure apply as well.
Proof
(1) Porezni obveznik sa sjedištem, prebivalištem ili uobičajenim boravištem u tuzemstvu, čiji godišnji promet u tuzemstvu nije bio veći od 60.000,00 eura oslobođen je plaćanja PDV-a na isporuke dobara i usluga obavljene u tuzemstvu.(1) A taxable person established, resident or habitually resident in the country whose annual domestic turnover did not exceed EUR 60,000.00 is exempt from VAT on supplies of goods and services carried out in the country.
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