The Croatian Tax Authorities have requested, by letter to the European Commission, an authorisation to apply as of 1 January 2018 an increase the national VAT threshold to €45,000 (or the national currency at the exchange rate on the day of its accession).
The VAT threshold is currently €35,000. However, it must be noted that this threshold only applies to businesses established in Croatia, not those from other countries.
Raising the threshold is expected to reduce administrative burden and tax compliance costs for enterprises, as they will be relieved from a number of tax obligations such as filing of VAT returns or keeping VAT records. It is also anticipated that the increase of the threshold will simplify the collection of the tax and reduce the workload for national tax administration.