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

If you provide your clients with a 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. It should be assessed on a case-by-case basis.

Short-term leases (<90 days for boats; <30 days for others) are generally taxed in a place 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 a reverse charge and avoid registration, but please note the VAT registration can be triggered on another basis (e.g. intra-EU transaction).

  • B2B renting to a non-Croatian business is reverse-charged.

  • B2C renting is taxable in Croatia if the customer resides in Croatia.