Boat Charter, Rent-a-Car and Other Vehicle Rentals

If you provide your clients with short-term lease (<90 days for boats; <30 days for others) while the lease object (boat, car, other) is put at the customer's disposal in Croatia, you probably have to register for VAT and file monthly returns. There are some exceptions. You should assess your case individually...

Short-term leases (<90 days for boats; <30 days for others) are fully taxed where the vehicle/vessel is put at the customer's disposal. You should register for Croatian VAT and submit monthly VAT returns if the vehicle/vessel is in Croatia at the point of transfer to the customer.

For long-term leases (>90 days for boats; >30 days for others), taxation depends on the customer's status and the vehicle's nature:

B2B renting to a Croatian customer is taxable in Croatia. You can apply reverse charge and avoid registration, but companies often register for flexibility in taxable transactions and easier input VAT deduction.
B2B renting to a non-Croatian business is reverse-charged.
B2C renting is taxable in Croatia if the customer resides in Croatia.
B2C renting of pleasure boats (e.g., yachts) is taxable in Croatia if the boat is put at the customer's disposal there, provided the lessor has a fixed establishment in Croatia used for the rental business.