How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6307
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

We are looking to purchase software development services

This answer was rated:

hi we are looking to purchase software development services from croatia. We are currently not VAT registered but i am worried we will have to pay Croatian VAT. Is this correct?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: we are an insurance broker

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

You would only have to pay Croatian VAT if your software development services provider is registered for VAT in Croatia.

If you are unregistered for VAT thne this cost has to be absorbed in your overall expenses. The threhold for VAT registration in Croatia is HRK 300,000.

"The Croatian Ministry of Finance announced a rise in the VAT registration threshold from 1 January 2018. The current annual threshold rose from HRK 230,000 to HRK 300,000. Any resident business providing taxable services above this amount will have to VAT register and charge and remit local VAT."

My aim is to give you aprofessional service. I hope this is helpful and answers your question.

Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need moreassistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

 

 

Customer: replied 8 days ago.
the company providing the service are VAT registered in croatia. They also have a US operation, would we be better to purchase from the US?

Thank you for your reply.

You may be better off buying it from USA to overcome VAT issue.

I hope this is helpful and answers your question.

Hi there

Just checking to see if you need more clarification/information or have I answered your question.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen before you leave, to ensure I get credited for it by Just Answer today.

Many thanks

taxadvisor.uk and 2 other Tax Specialists are ready to help you

I thank you for accepting my answer.

Best wishes.