VAT alert - changes to TOMS for non-EU operators in Croatia

Tax news, August 2021

According to the amendments of the Croatian VAT Regulations that came into force on 5 January 2021, Tour Operators' Margin Scheme (TOMS) is no longer applicable to entities who have established they businesses or have a fixed establishment from which they render the services outside the European Union (EU) territory.

TOMS is a special scheme for entities that buy in and re-sell travel, accommodation, and certain other services in their own name. It allows those businesses to account for VAT on travel supplies (that are seen as single supply) without having to register and account for VAT in every EU Member State in which the goods and services are supplied. Under Croatian VAT regulations, TOMS is applicable to both B2B and B2C supplies.

VAT Regulations do not provide for additional provisions on the subject matter. The Croatian Tax Authorities have not issued any guidelines or opinions on the subject matter so far.


The amendment affects non-EU entities supplying travel services that would fall under TOMS in Croatia prior to 5 January 2021. It also affects Croatian recipients of those services.

As a result of the amendment, non-EU entities should apply regular rules on place of supply, assessment of VAT liability and input VAT deduction when rendering the travel services. Accordingly, these entities might be required to register for VAT purposes in Croatia if they supply travel services there. Registration however would not be required if travel services are supplied only to the recipients who can reverse charge VAT on the supply.

In case further information is required, do not hesitate to contact Deloitte Croatia.

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