Croatia imposes Value Added Tax (VAT) at different rates as follows for various goods and services.
The standard VAT rate is applicable to all taxable goods and services in Croatia, except when a specific measure allows for a reduced rate.
Some foodstuffs; water supplies (excluding bottled water); newspapers (other than daily published newspapers with less than 50% advertising content); periodicals (magazines other than science periodicals with less than 50% advertising content); tickets for concerts; hotel accommodation; café, restaurant and hotel services (excluding alcohol).
Some foodstuffs; books (including e-books); daily newspapers (with less than 50% advertising content); scientific periodicals; admission to cinema.
Intra-community and international transport (excluding road and rail)
Source: https://www.porezna-uprava.hr/en/EN_porezni_sustav/Pages/value_added_tax.aspx
Travel per diem allowances cover meals and small expenses. Such allowances are tax free up to a certain limit set by the government. Expenditure for accommodation should be calculated at the amount of the invoice received for the night.
Per diems for business trips within the country are tax-free up to €30 in 2025.
Allowance rules are applicable for local and foreign trips:
| Condition | Amount |
| less than 8 hours | €0 |
| 8 to 12 hours |
1/2 of the legal rate, for both domestic and foreign business trips. |
| longer than 12 hours | full country rate, for both domestic and foreign business trips. |
In case of transit through a foreign country lasting longer than 12 hours, the employee is entitled to a standard tax-free daily allowance for that country.
Meal deductions – applicable for lunch and dinner (not breakfast):
| Condition | Procentage |
| lunch or dinner | 30% |
| lunch AND dinner | 60% |
For mixed trips, the rate of the country of the longest stay applies.
https://esavjetovanja.gov.hr/ECon/MainScreen?entityId=8180 Odluka o visini dnevnice za službeno putovanje u inozemstvo za korisnike koji se financiraju iz sredstava državnog proračuna
When company car is used for business travel, employer can reimburse tax-free all car usage costs that are related to the business travel (fuel, pay toll, parking costs, etc.).
When a private car is used for business travel, employer can reimburse the employee a tax-free amount of 0,50€/km. This reimbursement is intended to cover costs related to the usage of private car for business purposes such as depreciation, maintenance, fuel, etc. Costs that arise during the travel e.g. pay toll are not included in the reimbursement but may in total be reimbursed.
Croatia follows EU regulations on electronic documents and signature. Digitised documents with qualified electronic signatures or electronics seals are considered legally equivalent to paper originals.
Original paper documents may be destroyed only if the digital copies meet legal requirements regarding quality, authenticity and are securely stored. Digital copies must have a timestamp or electronic signature to ensure integrity and authenticity.
Retention period is for 10 years for invoices and accounting books.
Storage can be done outside the EU only if there is compliance with the GDPR rules, especially regarding data protection, security and cross-border transfers.
Source: Accounting Act, Tax Procedure Act