Digital Services

B2C digital services provided to Croatian individuals, such as online traffic information, weather forecasts, online newspapers, magazines, data storage, software downloads, search engines, and online gaming, are usually taxed in Croatia.

You should register for Croatian VAT and file monthly VAT returns if you provide these services. If you provide services to individuals across the EU, you can register for the one-stop-shop scheme (OSS), allowing you to submit monthly VAT returns in one EU member state. If you are a non-EU business, you can do this in Croatia. If you are EU-established, you can only register for OSS in your country.

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.