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Research by Country/Region January 17, 2018  
CROATIA: CUSTOMS, TAXES, and DOCUMENTATION REQUIREMENTS: IT PRODUCTS and SERVICES IMPORTS

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A. Is this country a member of the Information Technology Agreement?

B. Customs documentation requirements for IT products

C. Software: duties and taxes, updates, licenses, electronically delivered

D. IT services: tax treatment and other regulations

E. Refurbished, used, or repaired computer equipment imports


A. IS THIS COUNTRY A MEMBER OF THE INFORMATION TECHNOLOGY AGREEMENT?
YES
Signatories to the Information Technology Agreement (ITA) have eliminated their import duties on a wide range of information technology products, including software and computer hardware. For more information on the ITA, and exact tariff elimination schedules of signatories, click here.
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B. CUSTOMS DOCUMENTATION REQUIREMENTS FOR IT PRODUCTS

What are the documentation requirements for the physical import of software? For other information technology products?
Invoice and forwarder documents are required for physical import of all IT products. If the IT product has a power supply unit, a State-Authorized Quality Assurance Office has to issue a certificate of approval for conformance of the power supply to the Croatian technical requirements – CENELEC type of requirements. This certificate has to be issued only once for each such product.
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C. SOFTWARE: DUTIES and TAXES, UPDATES, LICENSES, ELECTRONICALLY DELIVERED

DUTIES AND TAXES ON SOFTWARE IMPORTS

Are duties assessed on the intellectual property of the software or on the medium on which is it presented?
The duties are assessed separately on the CD-ROM (media) and on the value of the software's IP.

Are taxes assessed on the intellectual property of the software or on the medium on which is it presented?
The taxes are assessed separately on the CD-ROM (media) and on the value of the software's IP.

Is customized software treated differently than packaged software?
There is no difference between customized software and packaged software.
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IMPORTS OF SOFTWARE UPDATES

What are the customs duties and tax implications for software sold with updates when the full sales price, including cost of updates, is shown on the original commercial invoice? Are duties and taxes paid on that amount? What happens when the updates are sent at a later date? Are duties/taxes applied again? If so, based on what value? How should information presented on the commercial invoice for the original and subsequent shipments to avoid paying duties/taxes more than once on a single sale?
The importer has to pay the full tax and duty amount on software according to the sales price indicated on the invoice accompanying the product. Tax and duty on updates will be charged according to price indicated on accompanying invoice. If the price is much lower than the original version, there should be a description that the software is an only an update.
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SOFTWARE LICENSES: CUSTOMS CLASSIFICATION, IMPORT DUTIES, TAXES, OTHER

Are software licenses classified in Harmonized System 4907?
No

Are import duties/taxes applied? If so, on what cost/price base are they levied?
No

Are withholding or other additional taxes applied on software licenses? If yes, how?
No

If a U.S. license agreement is included in the packaging or is part of the installation/registration of shrink-wrapped software imported from the United States, would that agreement be binding on consumers in your market? If so, would U.S. or local laws pertain?
Yes, it would be binding; local laws pertain.
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SOFTWARE DELIVERED OVER THE INTERNET/ELECTRONICALLY DELIVERED SOFTWARE

Are taxes applied to software delivered to the end-user over the Internet? If so, on what value?
This issue is not regulated. If a company is purchasing goods over the Internet, a money transaction will take place abroad. This action will be monitored by the Croatian National Bank. This means that duties and taxes have to be paid based upon the invoice accompanying the goods. If the intellectual property is shown on the invoice as value, taxes and duties will be charged. If software is produced in Croatia no duties are levied.

What are the documentation requirements for the electronically delivered import of digitized products (i.e. software, movie downloads) over the Internet or other networks?
Invoice.

Must an electronically delivered software import be accompanied by a physical shipment of the same product?
There is no regulation or law regulating this issue.
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D. IT SERVICES: TAX TREATMENT AND OTHER REGULATIONS

Are services (i.e. training, set-up, etc) relating to the sale of software taxed? If so, at what rate and based on what value?
Import duties as well as taxes will be charged on the price invoiced for the services.

Are U.S. IT solution providers permitted to send personnel into the country to set up hardware/software-related systems?
U.S. information technology solution providers are allowed to work in Croatia.

Are special visa, work permits, and/or professional certification by an accredited body required?
Visas are required for some countries (not for the United States). Work permits are required.
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E. REFURBISHED, USED, OR REPAIRED COMPUTER EQUIPMENT IMPORTS

1. REFURBISHED COMPUTER EQUIPMENT
Is the import of refurbished computer hardware, parts, and accessories (including toner cartridges) permitted?
Yes, the import is permitted.

If so, what are the documentation requirements?
Invoice and forwarder documents are required for the import of all IT products, including refurbished computer hardware.

Is special labeling required?
No special labeling is required.

What value should be shown on the invoice?
The actual sales price has to be on the invoice, which should obviously be lower than for a new product.

How are duties and taxes assessed?
Import duties and taxes are assessed on the value of spare parts used for refurbishment and performed service, which should both be presented on the invoice.
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2. USED COMPUTER EQUIPMENT
Is the import of used computer hardware, parts, and accessories (including toner cartridges) permitted?
Same as for refurbished equipment. See section E. 1. above.
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3. REPAIRED COMPUTER EQUIPMENT
Are duties and taxes assessed on the re-import of repaired computer equipment?
Yes, but only on value of the spare parts or value of the service performed. These values or prices have to be indicated on the invoice.

How should the commercial invoice appear?
They should appear on the invoice along with specification of services done or spare parts installed with the value indicated.
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RESPONSE INFORMATION

This response was prepared by the U.S. Department of Commerce/Commercial Service in Zagreb, Croatia in February 2003. For further clarification please contact:
Miroslav Nikolac
Commercial Specialist
U.S. Embassy, Zagreb
miroslav.nikolac@mail.doc.gov

Special Notes: The above information is intended to serve only as unofficial guidance. In seeking to obtain government rulings in specific cases, it will often be necessary to refer to special laws, separate regulations and announcements, and case-by-case decisions by the government. Beyond the general guidelines shown above, legal counsel should be retained at an early stage of consummation of a major procurement contract, and before entering into any legal commitments.

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