Croatia applies a standard rate of 25% —one of the highest in the European Union— and two reduced rates, 13% and 5%. The tax is called porez na dodanu vrijednost there, PDV on invoices, and it is administered by Porezna uprava, the Croatian tax authority.
| Type | Percentage | Applies to |
|---|---|---|
| Standard (PDV) | 25% | Default regime for goods and services |
| Reduced | 13% | Second tax band, for the categories set by Croatian VAT law |
| Super-reduced | 5% | Lowest band, reserved for essential categories set by law |
Rates verified on September 8, 2026 against the PDV information from Porezna uprava (Croatian tax authority) (porezna-uprava.gov.hr).
A 25% rate that changes shipping calculations
Croatia’s particularity is not a legal exception, it is the number: four points above the Spanish rate. In a store that sells with tight margins, moving from charging 21% to 25% once you cross the distance-selling threshold means that the same final price leaves less money, and that tax-inclusive prices stop matching across countries.
It is the decision you have to make before crossing the threshold, not after: either the final price is the same throughout the EU and the margin varies depending on the destination, or the final price changes by country and the margin stays the same. Both are defensible; what does not work is not having decided.
A small but practical detail: Croatia adopted the euro in 2023, so there is no kuna conversion to carry over. If you have old prices or tables in the previous currency, they are outdated.
Which VAT should you apply when selling from Spain
This is the part that does not appear in any table and is usually the real question. The rate you charge does not depend only on Croatia, but on how much you sell outside Spain:
- Below €10,000 per year in distance sales to the European Union as a whole —combined, not by country— you apply Spanish VAT.
- Above that €10,000 threshold you apply destination VAT: Croatian VAT, 25% or the rate that applies to the product, and you report it through the One-Stop Shop (OSS) without needing to register there.
The threshold adds up all your B2C sales to other EU countries and digital services, and the change does not wait until the next fiscal year: the very transaction that exceeds the threshold already uses the destination rate.
If you sell to a company with a valid VAT number, it is a different story: the transaction is VAT-free under the reverse charge mechanism, but you must validate that number in VIES and keep proof of the validation.
How to set this up in WooCommerce
WooCommerce includes country-based rates, but it does not distinguish rates within a country by product class or monitor the threshold for you. There are three things you need to set up:
- A tax class for each rate you use, assigned product by product rather than at store level.
- VAT number validation at checkout against VIES for business customers, so VAT is not charged when the transaction is subject to reverse charge.
- Tracking of the €10,000 threshold, because the day it is exceeded the rates change at once across all countries.
All three are covered by EHERO Woo VAT, which we built precisely because these are the three points where stores selling to the rest of the European Union break.
Frequently asked questions
What is the standard VAT rate in Croatia in 2026?
25%, one of the highest standard rates in the European Union. In addition, there are two reduced rates, 13% and 5%.
What is VAT called in Croatia?
Porez na dodanu vrijednost, abbreviated PDV. That is what you will see on any Croatian invoice where Spain would show IVA.
I sell from Spain to Croatia, which VAT should I charge?
Spanish VAT until you exceed €10,000 in annual distance sales to the EU as a whole. Above that, Croatian VAT, reported through the One-Stop Shop.
Does Croatia still use the kuna?
No. Croatia adopted the euro in 2023, so transactions and returns are in euros and there is no currency conversion to manage.
Continue here
- VAT rates by EU country in 2026 — the full table for all 27
- VAT in Greece 2026 · VAT in Germany 2026
- The €10,000 threshold for distance sales
