Factsheet for case HR-2020-14/289 – Updated – measures in Croatia
|Country||Croatia , applies nationwide|
|Time period||Temporary, started on 01 April 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Deferral of payments or liabilities
|Author||Predrag Bejalovic (IJF) and Eurofound|
|Case created||06 April 2020 (updated 06 October 2020)|
According to Ordinance amending the Ordinance on the implementation of the General Tax Law (OG 35/2020) (see case HR -2020-12/288) new conditions are laid down for deferring VAT for the duration of special circumstances. Delaying the payment of VAT liability is possible only for taxpayers who, in 2019, have not achieved the value of supplies of goods and services in excess of HRK 7,500,000,000 (€1 million) in the previous year, and which determines the tax base according to deliveries made and in accordance with a special regulation on value added tax.
On 16 April 2020 The Tax Administration has issued instructions for deferring and paying VAT during special circumstances.
The VAT liability for the month of February (VAT form submitted until March 20, 2020) cannot be subject to a payment delay. Taxpayers who pay VAT monthly may apply a deferral of payment with a liability for March 2020, and those who pay VAT quarterly may apply a deferral for tax liability for the first quarter 2020. Very important is that the government decided that for VAT payments, it would be possible to defer such payments until the billing of invoices is issued, as is now the case with small businesses. The deadline for the submission of financial statements for 2019 is extended until 30 June 2020 and businesses are exempt from paying the Financial Agency fee for the publication of financial statements.
Not yet known at this stage.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Due to the nature of the measure, social partners were not involved.
As mentioned, due to the nature of the measure, social partners were not involved. However, both sides, trade unions and employers, are fully aware of the dire situation and fully support measures that contribute to the resolving of the consequences of crisis.
Eurofound (2020), Deferring and paying VAT during special circumstances, case HR-2020-14/289 (measures in Croatia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.