Tax liabilities in the purchase of second-hand vehicles from other EU Member States

Find out what tax obligations and documents are required for registration in case of acquisition of used means of transport
 

Used means of transport are:

• motorised land vehicles of an engine capacity exceeding 48 cubic centimetres or of an engine power exceeding 7,2 kilowatts, delivered six months after the date of first use and exceeding 6000 kilometres
• vessels longer than 7,5 metres, which have been delivered three months after the date of first use and which have been vessels for more than 100 hours
• aircraft with a take-off weight exceeding 1550 kilograms, delivered three months after the date of first use and flying for more than 40 hours.

What are the tax obligations, as well as the documents required for registration in case of acquisition of used means of transport, can be found in the attached table:

 

SELLER from another EU Member State	BUYER in the Republic of Croatia	CUSTOMER TAX LIABILITIES	REGISTRATION DOCUMENTS
Taxable person	Taxable person - who acquires for resale	- 25% of acquisition VAT is reported in: VAT form with VAT form	- the vehicle will not register because it procures it for resale
Taxable person	Taxpayer - acquired for own use	- 25% of VAT on acquisitions - Special tax pursuant to the Act on Special tax on motor vehicles is presented in: VAT form with VAT form	- Decision of the Customs Administration on payment of special tax  - Note printed on the invoice or other document for the acquisition of this means of transport or a special sheet of paper stamped by the tax Administration, which reads as follows: “The acquirer is obliged to declare the acquisition in the VAT form and to invoice VAT in the VAT form” (the invoice for acquiring the means of transport will not show VAT because it is an intra-EU supply which is exempt from VAT, but the invoice must include the VAT ID number of the seller from another Member State, VAT ID number of the Croatian taxpayer)
Taxable person	Persons not allocated a VAT identification number and not registered in the VAT register (citizens, small taxpayers, institutions, state administration bodies, regional (regional) self-government and local self-government, etc.)	- there is no VAT obligation because the seller needs to calculate VAT pursuant to the legal provisions of his Member State - special tax pursuant to the Act on excise duty on motor vehicles is not shown in the forms.	- Decision of the Customs Administration on payment of special tax - account of a foreign taxpayer in which VAT is declared or in any other way stated that VAT of that Member State has been charged on delivery in another Member State . the tax Administration is not obliged to issue notes or clauses/certificates.
Non-taxable person (citizen, institution, government authority, etc.)	Taxable person	- Special tax pursuant to the Act on special tax on motor vehicles - administrative fee on the acquisition of used means of transport is not shown in forms.	- Decision of the Customs Administration on paying Special tax
Non-taxable person (citizen, institution, government authority, etc.)	Persons not registered in the VAT register and not allocated a VAT identification number (citizens, small taxpayers, institutions, state administration bodies, regional (regional) self-government and local self-government, etc.)	- Special tax pursuant to the Act on special tax on motor vehicles - administrative fee on the acquisition of used means of transport is not shown in forms.	- Decision of the Customs Administration on paying Special tax
Dealer applying the special margin taxation procedure	Taxable person	- there is no VAT or administrative charge due because the reseller from another Member State charged the VAT of his Member State on the margin - Special tax pursuant to the Act on excise duty on motor vehicles is not shown in the forms.	- Decision of the Customs Administration on payment of special tax  - invoice or other document issued by the dealer, which contains a note on the application of the special margin taxation procedure  , the tax Administration is not obliged to issue notes or clauses/certificates.
Dealer applying the special margin taxation procedure	Persons not registered in the VAT register (citizens, small taxpayers, institutions, state administration bodies, regional (regional) self-government and local self-government, etc.)	- there is no VAT or administrative charge due because the reseller from another Member State charged the VAT of his Member State on the margin - Special tax pursuant to the Act on excise duty on motor vehicles is not shown in the forms.	- Decision of the Customs Administration on payment of special tax - invoice or other document issued by the dealer, which contains a note on the application of the special margin taxation procedure  , the tax Administration is not obliged to issue notes or clauses/certificates.

Specific margin taxation procedure

In the case of a special margin taxation procedure for supplies of used means of transport in the Republic of Croatia, the buyer is obliged to contact the customs administration to determine the obligation to pay a special tax in case he buys a means of transport subject to a special tax for the use of that vehicle on roads in the Republic of Croatia, which has not been registered in the Republic of Croatia so far.

In such a case, the Customs Administration shall issue a decision concerning the obligation to pay a special tax.

In order to be able to register such a means of transport, you need a reseller's account indicating either the “special margin taxation procedure - second-hand goods” or the reseller's declaration that the VAT was calculated on the margin and the customs administration's ruling on the special tax.

Learn more about tax obligations when purchasing second-hand vehicles from other EU Member States:

• by calling the Customs Department's phone numbers
• through contact form
• by personally arriving at the local customs office.