Vat Refund in Passengertransport

VAT REFUND IN PASSENGERTRANSPORT

Pursuant to the provisions of Article 13, paragraph 1, item 4 of the Value Added Tax Act, the values of supplied goods, with the exception of oil derivates, dispatched or transported from the Republic of Croatia by passengers in passenger transportor someone else on their behalf shall be exempt from value added tax.This exemption shall be grantedat the moment when taxpayers delivering the goods obtainproof of goods exportation.

Passengers or purchasers exporting goods purchased in the country shall upon subsequent exemption form value added tax be entitled to claim tax refund for the exported goods provided that the following requirements are met:
a) The passenger has no permanent or usual residence within the territory of the Republic of Croatia, which state shall be proven by passport or identification card,

b) Total value of purchased goods including value added tax declared on one invoice exceeds HRK 740.00,

c) The purchaser or someone else on their behalf transported the goods purchased in the Republic of Croatia abroad prior to the expiry of a three month period as of the date of the invoice for transported goods.The above mentioned goods can be exported from the Republic of Croatia by mail or in some other suitable manner.

d) There is:proof of export, original invoice and PDV-P form certified by Custom's house competentfor the area from which the goods were exported from the Republic of Croatia.Having verified and cleared the goods, the Custom's house shall certify by seal, signature and initials of an authorized civil servant the PDV-P form and record the Custom's house verification number and the date when the goods crossed the border of the Republic of Croatia.

The form and content of the PDV-P form are an integral part of the Ordinance on the Value Added Tax and are available at the following web page of the Ministry of Finance, Tax administration

The seller shall issue the PDV-P form at the request of a purchaser who has no permanent or usual residence within the territory of the Republic of Croatia.The PDV-P form shall be completed in two copies; the original shall be given to the purchaser and the copy shall be archived by the seller.

The seller of goods shall enter in the PDV-P form the total amount paid, the amount excluding value added tax, the amount of value added tax and the total amount of value added tax to be refunded to the purchaser or refund claimant.

The seller shall collect from the purchaser the total price of the goods, including value added tax.The amount of VAT includedin the value of the goods sold can be calculated by the seller by means of applying a recalculated VAT rate on the sale value of the goods.

The amount of VAT paid shall be refunded to the purchaser or the tax claimant provided that they deliver a certified original of the PDV-P form to the seller within six months after the invoice was issued.The certified original of the PDV-P form shall be deemed to be the tax refund claim.

When delivering the certified original of the PDV-P form by mail, the purchaser or the tax refund claimant shall also provide the seller with the bank account number to which value added tax shall be refunded.Payment system costs shall be borne by the purchaser.

Based on the certified original of the PDV-P form and having verified that the submitted claim meets the requirements for tax refund, the seller shall refund the value added tax paid to the purchaser or the tax refund claimant.

The value added tax paid shall be refunded in HRK in cash or by means of a wire transfer to the account number submitted by the purchaser or the tax refund claimant.In case of a cash payment, the seller shall refund the amount of value added tax with no delay. Wire transfer to the account of the purchaser or the tax refund claimant shall be executed within 15 days after the receipt of the tax refund claim.

By signing the PDV-P form, the purchaser or the tax refund claimant shall confirm the receipt of tax refund in cash.

Purchasers wishing to obtain value added tax refund shall upon exit from the Republic of Croatia present the invoices and the purchased goods to the Customs service and ask for verification of the original PDV-P form.

The invoices presented for verification along with the PDV-P form shall contain the information from Article 15, paragraph 6 of the Act at minimum.

Prior to certifying the completed PDV-P form, the Custom's house shall verify whether the data from the passport or identification card match the data on the PDV-P form, whether the amount in the PDV-P form exceeds HRK 740.00, whether the goods presented to the Custom's house match the goods declared on the PDV-P form, whether the purchased goods were used in the Republic of Croatia, whether the goods are exported from the Republic of Croatia prior to the expiry of a three month period as of the date on the invoice, whether the PDV-P form was certified and signed by the seller; and shall certify the PDV-P form by seal, signature and initials of authorized Custom's official and record the date when the goods crossed the customs' border, i.e. the date of the Custom's export clearing procedure.