Pursuant to the Ordinance on amendments to the Ordinance on the implementation of the General Tax Law (OG 35/20) of 23 March 2020 we provide an overview of the procedure for paying taxes in special circumstances.

1. Tax liability

A tax liability is considered to be an obligation for taxes, contributions and other public charges, except for customs duties and excise duties.

2. Justified conditions for deferring tax  

Entrepreneurs who meet the following conditions can apply for tax deferral:

• if there is evidence that revenues/receipts have diminished by at least 20% compared to the same month in 2019
• if it is probable that the revenue/receipts will be reduced by at least 20% in the next three months compared to the same period in 2019
• if the entrepreneur had no previous tax arrears or had arrears in a value of up to HRK 200.00

3. Deferral of tax liabilities

Payment of outstanding tax liabilities may be deferred for a maximum of three months from the due date of each tax liabilities separately with no interest being charged.

4. Instalment payment of tax liabilities      

If the entrepreneur is unable to pay the deferred tax liability then he or she may file another request for instalment payment of the tax liability. The instalment repayment may be granted in monthly instalments up to a maximum of 24 months.

5. Speciality for deferral of VAT payment

The request for deferral of VAT payment can be submitted by those entrepreneurs who, in 2019, had deliveries without VAT under HRK 7,500,000.00, and pay VAT according to issued invoices.

6. Applying

Entrepreneurs submit a request to the competent branch of the Tax Administration through the e-Tax system. Until the date of this notice, no specific forms of tax deferral request have been prescribed. However, it is clear that all possible evidence must be provided to substantiate the above conditions.

The Tax Administration will decide promptly and in a simple procedure on the submitted request and will submit the notification electronically.