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Official Guidance Issued for 5% Payment of VAT on Yachts in Croatia

In follow-up to our blog of last week highlighting the short-term window of opportunity to pay VAT on yachts at a reduced rate of 5% in Croatia ahead of its accession to the EU we are pleased to report that the Ministry of Maritime Affairs, Transport and Infrastructure of Croatia has now published official guidance concerning the procedure in English on their website.

The information can be found on the following link and is relatively self-explanatory:

Information for Vessel Owners Regarding Registration of Vessels With Croatian Vessel Registers

It should be noted that it will be a requirement for vessels taking advantage of the 5% VAT rate to be registered in Croatia.

We have been in direct contact with the Croatian shipping registry to ascertain eligibility requirements for the Croatian registry, i.e. to identify who can qualify for a Croatian registration.

They have advised that anybody can register a vessel in their name in Croatia regardless of their nationality or residence provided that they obtain a Croatian OIB Number.

An OIB number is a permanent national identification number allocated to every Croatian citizen and legal person/entities domiciled in the Republic of Croatia.

Registration fees are in the process of modification and will be published by the registry shortly.

A survey is required to join the Croatian register which is performed by the Croatian Shipping Register themselves or local harbour master.

For further information please do not hesitate to contact us.

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