How to do your VAT registration
When you are buying services from abroad (e.g. Uber which is based in the Netherlands) or providing services to companies in other EU countries, such as Uber, you may need a VAT registration. If you’re new to VAT, this page walks you through the basics of your registration process. Expect the process to take approximately 10 working days.
Consult a tax advisor for more details on criteria and requirements that apply to you.
Read in Croatian.
What your registration entails
VAT collected from providing services
The VAT you collect from selling your services (transportation services sold to Riders) is payable to the Tax Authority with your VAT return.
VAT on business expenses
Besides collecting VAT, VAT can also be charged to you by several parties. For example on business expenses such as fuel and car repairs. When you are VAT registered, you may be able to deduct this from your collected VAT.
Criteria and Requirements
VAT registration is mandatory at the moment of exceeding threshold revenue of HRK 300.000 within same fiscal year. VAT Registration is due in the month followed by month in which said revenue threshold is exceeded.
Alongside VAT registration taxpayers additionally submit evidence of all received incoming invoices.
If your turnover does not exceed this threshold, you can register for VAT voluntarily, or apply for a VIES-only registration.
More on VIES will follow later.
To apply for a VAT number, you can may either submit the so-called “P-PDV” (http://www.porezna-uprava.hr/en/EN_obrasci/Documents/P-PDV(English).pdf) application form to the Tax Authority, or submit the request online via e-porezna.porezna-uprava.hr, provided that you are registered for online services.
Note: As of 1/1/2020 the general VAT rate is reduced from 25% to 24%.
We strongly recommend you speak with a tax professional. Here are a few suggestions: Eurofast
How to do your VIES-registration
A VIES registration is the VAT registration that you need if you are buying services from , or selling services to the EU (i.e. from Uber which is based in the Netherlands).
To apply for a VIES registration, the following criteria should be met:
- The VAT-number given to you is not used for any other purpose than to report purchases of services from the EU (e.g. Uber in the Netherlands).
Under a VIES-only registration, you:
- do not charge VAT on your services;
- do not reclaim VAT on your purchases;
- do declare and pay VAT on your purchases of services from the EU; and
- do declare the sales you make to other companies in the EU
To apply for a VIES registration form P-PDV has to be submitted as well, but in section 4 only box 4 should be ticked.
Your Uber Profile
Uber Profile - VIES
Be sure to provide us with a valid VAT-number (by adding it to your Tax Profile / Invoice Settings page) and to update your tax profile in the Uber App. Select the “Small Business Regime” option.
Uber Profile - VAT
Be sure to provide us with a valid VAT-number (by adding it to your Tax Profile / Invoice Settings page) and to update your tax profile in the Uber App.
- How do I ensure my compliance?
To ensure your compliance, the following forms have to be submitted monthly:
- The PDV form (http://www.porezna-uprava.hr/en/EN_obrasci/Documents/PDV(English).pdf), to file your VAT return;
- The ZP form, if you made sales to other EU countries;
- The PDV-S form, if you made purchases from other EU countries;
- The U-RA form, invoices book.
- Do I need to register a company?
To start driving as a PD and obtain a VAT number, you have to register as a sole proprietor, or even register a company if you wish.
Registering as a sole proprietor can be done online, if you have previously obtained an E-citizenship. You could also register by paying a visit to the competent County Office for State Affairs. Expect this registration to cost approximately 250 HRK.
If you wish to incorporate a LLC or Simple LLC you must contact a notary. The notary will instruct you to open a bank account, and to deposit 20.000 HRK for a LLC, or 10 HRK for a Simple LLC, after which the notary can start the incorporation process.
Regardless of your kind of registration (sole proprietor, Simple LLC, LLC) you will have to contact the Croatian Statistics Bureau to obtain the Statistics Code (NKD) next. More information can be found here.
Heads up: after taking these steps, you will have to apply for VAT or VIES separately. You should also register at the Croatian Health and Pension Institute.
- How do I calculate my turnover via the Uber app?
Your turnover is the sum of the services you sold. On the Uber app this is the sales made to the Riders. However, please be aware that for tax purposes you likely need to include the turnover from any other activities you perform outside of the Uber platform too.
We suggest speaking to the tax office, chamber of commerce and/or your tax accountant to be sure you are calculating your turnover correctly!
- What should I include on my invoices?
Basic invoice elements are:
- Invoice number and date
- Time when the receipt was issued (hour and minute),
- Operator (person) ID on the cash register,
- Unique identification code of the cash receipt,
- ID of the means of payment, such as bills, card, cheque, transaction account, other,
- Place of service or goods delivery
- Description of services rendered/goods sold
- Net amount of the invoice; VAT amount and total amount
- Details of invoice issuer Note:
There is an option of issuing e-invoice and said option is mandatory when doing business with public procurement in Croatia whilst for other users is optional.
E-invoice is an electronic invoice identical to a paper invoice.
E-invoice service is an online service for electronic invoice exchange between business entities (suppliers and customers). It is intended for small, medium and large companies and entrepreneurs.
E-invoice enables you to manage the entire business process of issuing, transferring, receiving invoices and attachments and securely archiving, electronically signing and sending them.
For more details please visit: fina.hr
When registered under a general VAT regime and invoices are issued to another VAT payer, there are some additional demands regarding the content of your invoices:
- Details of the recipient
- Date of supply
- I receive other payments from Uber (e.g. incentives, referrals of new drivers). What should I do as regards VAT for these?
Typically, these payments are considered as services provided by you to Uber. These services are normally not subject to VAT in Croatia, but they should be mentioned in your EC Sales Listing.
Below are some examples of those services:
- Referrals: Getting someone you know to sign up as a driver as well helps Uber a great deal. Therefore, we sometimes pay you for rendering this referral service to us.
- Availability services provided by you to Uber: This is a supply of services rendered by you to Uber when you commit to make yourself available to perform Transportation Services via the Uber app for a certain period of time.
You may also obtain other income from the Rider:
- Cleaning fee: Charge by you to the Rider for soiling your car.
Those fees are subject to VAT and should therefore be included in your VAT return.
Please speak with the tax office, chamber of commerce and/or your tax accountant to ensure you apply the right treatment.
- How do I submit my VAT return and EC Sales (recapitulative statement)?
- What are Uber’s details I need to use for my EC Sales reporting?
Uber BV’s VAT number is: NL 8520 71589 B01.
- How are tips taxed and where can I find the amounts I have received as tips?
According to Croatian tax regulations
- Income tax: tips are considered income and should be included in your tax return and taxed accordingly.
- VAT: voluntary tips are not subject to VAT and are not to be included in the VAT reporting,.if they are paid with cards. If paid in cash, voluntary tips do not need to be tax at all.
- I have heard I need to “reverse-charge” VAT on Uber’s services fee, what does this mean for me?
You contract with Uber BV based in the Netherlands, therefore, in accordance with EU VAT rules you need to reverse-charge Croatian VAT at 25% on Uber’s services fee, this means that:
- Uber charges no VAT on its services fee invoices;
- You should self-assess 2519% of Croatian VAT on these Uber’s services fee invoices;
- You should declare this VAT on your VAT return.
For you, this VAT can be either neutral or may need to be remitted to the Croatian tax authorities depending on your VAT regime.
Please consult your tax advisor for further information.
- The Uber Tax Summary explained?
What is it? Your Tax Summary is a document that provides a detailed breakdown of your earnings (gross fares) and potential business expenses. It’s not an official tax document but could help you or your preferred tax professional prepare your tax return.
Who gets it? If you drive with Uber, you’ll receive a Tax Summary. Every Uber partner gets one.
Where is it? You can access your Tax Summaries by logging in to partners.uber.com and clicking on Tax Summary.
When is it available? Your Tax Summary is issued monthly.
The VAT you have charged appears on the Tax Summary (and on the invoices to your customers), but only if you have updated your Tax Profile / Invoice Settings page with your VAT registration details.
Here is an explanation of some common terms:
- Gross Uber Rides Fare: this is the full fare that you have charged and invoiced to riders and includes VAT (if any) that you have charged.
- VAT on Transportation: this is the portion of the fare that you have charged which is VAT. The fare is inclusive of VAT (at 25% in Croatia).
- Uber Rides Service Fee: this is the fee charged by Uber to you. It is taken from the Gross Uber Rides Fare.
Every Partner is unique and so are their specific tax circumstances. As such, the information on this page may not cover your tax needs and it should not be relied upon to replace you seeking independent tax advice. Above stated should not be considered as a tax advice, but as a general overview of relevant tax rules. Uber can’t provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor to get tailored help and advice for your specific circumstances. The information on this page is for Croatian audiences only.
Note: some links to external sources provide information in Croatian.
Last updated on January 30 2020